Only 1169 sales in May-Future threatened?

kwagar · 06-04-2009, 06:17 AM

Just curious what others think regarding the fact that only 1169 smarts were delivered by the dealer network in May?
Yes we all know the economy is bad, car sales are in the tank, gas prices are way down from year ago etc, etc.

But anyway you slice it this is a poor performance. It would put average dealer unit sales for May around 15 cars which is likely well below breakeven for most if not all.

Most of us at least on this forum are very happy with our cars and they continue to generate interest from those that see us but this is not translating into meaningful sales numbers. With the likely increase in small euro style cars coming to the US in the next few years will there be enough volume to make smart a success here?

It seems to me it is in our best interest as owners for smart to be a success but damned if I know how we can help. I sure don't see any expansion of dealerships likely at current sales levels.

Do you think the success of the smart car in the US is clearly threatened or do you think sales will rebound significantly either in the face of an imporving economy and/or rising fuel costs?

I would be very interested in dealers thoughts about the issue as well. How do you survive the current slow sales?

**rfernatt** · 06-04-2009, 06:37 AM

Makes me think of this previous thread from earlier in the year:

Daimer down, smart up

Still, considering the shape of the auto industry, it's probably not all bad. What was Penske originally targeting to sell in the US before the launch? 15 - 20K cars? If so, then these monthly numbers are roughly in line with their original plans.

Since American memory lasts about two weeks - as gas prices continue to climb, more people will be looking for fuel efficient vehicles.

Big Panda · 06-04-2009, 06:45 AM

For what's considered, even now, a relatively new 'brand', that's pretty good when you consider there are only about 75 smart centers in the U.S.

I'm sure there are plenty of Ford, Chrysler and GM dealers across the country that would have loved to sell over 15 new cars last month. Maybe even some Toyota, Honda, Mazda, Mitsubishi, etc....as well.

My opinion is that in this economy, that is doing VERY well!

Padawan · 06-04-2009, 07:56 AM

Quote:

Originally Posted by Big Panda

For what's considered, even now, a relatively new 'brand', that's pretty good when you consider there are only about 75 smart centers in the U.S.

I'm sure there are plenty of Ford, Chrysler and GM dealers across the country that would have loved to sell over 15 new cars last month. Maybe even some Toyota, Honda, Mazda, Mitsubishi, etc....as well.

My opinion is that in this economy, that is doing VERY well!

Well said. I agree with Big Panda's assessment completely.

As far as helping out the company, we can always buy more smarts.

On a smaller scale, smart centres definitely benefit a lot from parts, accessory, and merchandise sales.

Regardless, I don't think we as owners or smart as a brand have anything to worry about. They are essentially creating a brand new US market segment on their own, and doing rather well, all things considered.

theguywiththelongestname · 06-04-2009, 08:16 AM

Most major manufacturer's sales dropped 30%-40% in May 2009:
May 2009 Auto Sales Figures | The Green Motorist

theguywiththelongestname · 06-04-2009, 08:21 AM

However: there are about 4600 Ford dealerships in the US and Canada, and their North American sales for May was about 49,000 units...so about 10-11 units per dealership average...hmmmm, interesting

MPrice2984 · 06-04-2009, 08:23 AM

My daughter placed a reservation 11 months ago. Two months ago the DDE said Oct-Dec 2009, now it says it cannot give an estimate. Maybe all available extra production goes to China now. The dealer certainly hasn't tried to get her to take an orphan.

kwagar · 06-04-2009, 08:27 AM

I sure appreciate all of the optomism and hope the dealers and smartusa feel the same.

Part of my concern is that most dealerships were purpose built. They are new so they have significant overhead, service at this point is likely warrenty work and oil changes and most sell nothing but new smarts, no other cars and no used cars so the downturn could be more diffficult than for an established dealer facing similar challenges.

Jordon · 06-04-2009, 08:37 AM

What happens to all the dealerships if smart quits selling in the US? I don't see this happening, but its not like the average vehicle can fit in the service bays, or at least the one I have seen.

**jwight** · 06-04-2009, 10:12 AM

Only 1169 sales in May

Which explains all the orphans at the dealers; it appears people are not canceling their orders, just not taking the cars when they show up. If the market turns around things may pick up; however, there are other small cars on the horizon that will be competing for potential smart buyers. If the new Ford Fiesta and the Chevy Cruze are priced around $15K smart could be in trouble (yes, they're not micro cars but the average buyer couldn't care less.)