The reply letter!

[SmartShanna]

Hi Forumistas,
Some of you may remember that I sent a letter (yes, snail mail) to Roger inquiring about the warranty. I finally got a letter in response from Anthony R. Pordon, Senior Vice President, and here's what it says:

Dear Shanna,
In reference to your letter dated November 10, 200 to Mr. Roger Penske, I was happy to see your enthusiasm for the smart fortwo and your participation in our reservation and configuration program. As an early adopter, you are at the forefront of embracing a vehicle that will create a whole new market segment in the United States. I know you will enjoy driving this functional and innovative vehicle and I thank you for your support.

I appreciate your comments regarding the smart vehicle warranty. We looked at several available options, including the 3-year/36,000 mile warranty you suggest. The essence of this franchise is about making individual choices, about being different.

We selected the 2-year/24,000 mile warranty for several reasons. First, it was our intention to keep cost of ownership as low as possible. Longer warranty periods would have resulted in a much higher vehicle cost. Second, many vehicle warranties are marketing driven in nature. We believe the 2-year warranty speaks for the fortwo's quality and uniqueness and allows each customer the ability to customize a longer, extended warranty period at the time of purchase if so desired.

The ultimate success of the smart fortwo will hinge upon our ability to deliver a superior customer experience while providing individual flexibility. I appreciate your thoughts and encourage you to keep me informed about your experience as an early adopter of the smart fortwo.

Best regards,

Anthony R. Pordon

The above was lovingly retyped by yours truly. Hmmm, perhaps Santa will bring me a scanner...

[spdickey]

Originally Posted by SmartShanna

We selected the 2-year/24,000 mile warranty for several reasons. First, it was our intention to keep cost of ownership as low as possible. Longer warranty periods would have resulted in a much higher vehicle cost. Second, many vehicle warranties are marketing driven in nature. We believe the 2-year warranty speaks for the fortwo's quality and uniqueness and allows each customer the ability to customize a longer, extended warranty period at the time of purchase if so desired.

The ultimate success of the smart fortwo will hinge upon our ability to deliver a superior customer experience while providing individual flexibility. I appreciate your thoughts and encourage you to keep me informed about your experience as an early adopter of the smart fortwo.

As I have stated in earlier posts, the warranty program is all about choice and low cost.

Want more? Pay more.

I appreciate being given the choice of a short warranty, but will probably add a year or two depending on cost (which they have not yet released).

[Vlad92]

I hope you don't have to decide on the extended warrenty at time of initial purchase. My wife's Honda, for example, allowed for the purchase of the extended warrenty any time in the first 3 year / 36,000 miles.

That way you can drive the car under warrenty and then decide (based on repair history) if longer coverage is needed.

[kurt013]

I hope the 2 year warrenty DOESN'T speak for the fortwo's quality. I am a bit nervous about that. Hyundai's, even American cars, have twice the warrenty. Does MB know something we can't possibly know until it's too late?

[RLove]

Gawd kids, give it a rest - and relax. The Smart in it's original form has sold over 700,000 copies. I don't know what the reliability record is, but I'm fairly confident that if there have been problems, they have been resolved by now. Yes, the new Smart is significantly different, but MB has traveled down this road a time or two previously, and even though this is a fairly inexpensive vehicle they aren't going to put their reputation on the line by producing a piece of crap. If you want one of those, buy the Chinese rip-off version, and put your extended warranty money to good use.

I know several with Hyundai's, the smartest thing they did was give that amazing warranty. It made people more willing to take a chance on their product, which from what I saw was somewhat crude at the outset, but has improved dramatically in a short time. Their huge market was built on that warranty - I'm sure it made them lots more money than it cost them.

MB is gonna sell all the Smarts they can build, and they already have a pretty solid reputation for quality - they don't need to make you comfortable with your decision...if you don't buy it, there is line waiting for your car.

[Karl Roth]

Thanks for all the typing Shanna, Car & Driver called us Fashionistas awhile back
Thanks karl

[CruisingAZ]

Originally Posted by kurt013

I hope the 2 year warrenty DOESN'T speak for the fortwo's quality. I am a bit nervous about that. Hyundai's, even American cars, have twice the warrenty. Does MB know something we can't possibly know until it's too late?

My Jeep has a lifetime warranty, that SPEAKS of quality!

[spdickey]

Originally Posted by CruisingAZ

My Jeep has a lifetime warranty, that SPEAKS of quality!

It also speaks to the amount of money Chrysler adds to the cost of the vehicle to pay for your peace of mind.

[SmartBob]

Originally Posted by CruisingAZ

My Jeep has a lifetime warranty, that SPEAKS of quality!

I don't know the exact figures but I'm sure they're depending on MOST people not keeping their cars long enough for it to matter. I, on the other hand, kept my new Neon for almost 10 years now so that would have been nice. It started falling apart after the warranty expired. Hmmmmm

[Fredvon4]

IN this market the real answer is:

"MB is gonna sell all the Smarts they can build, and they already have a pretty solid reputation for quality - they don't need to make you comfortable with your decision...if you don't buy it, there is line waiting for your car."

While the solid reputation for quality is not true, as relates to the Smart cars, the rest is very true... they are offering a 2/24 because they can....

I object to RLove"s: "Gawd kids, give it a rest - and relax."

At RLove's and my own income levels having a major failure at 24,025 miles can probably be absorbed out of pocket with no detriment to the family.

But there are a LOT of young and low income potential owners that will have a hard time getting a expensive electronic unit repaired after the warranty expires...

One out of every so many cars goes down the line with some manufacture defect... Let's say an area of the windshield that did not get primed properly and the windshield eventually leaks water. The SAM unit is a Electronic control box for Cabin items like the power door locks and other features. You must pay a dealer to trouble shoot, find, replace, and set the codes in the computer to accept the new unit. This will cost 3~5 hundred dollars

To the folks who buy into a car dealer (Not the Manufacturer) telling you the short warranty is to keep cost down for you the consumer. I not sure this is entirely true...

Here is an example.... My 2005 F350 MSRP was $52,864 and came with a 3yr/36,000 basic bumper to bumper warranty with roadside assist. I bought the truck with all the discounts for the typical "street price" of $38,559.

The next year, 2006, the exact same truck's MSRP increased by Ford's normal 1.5% and still had similar "street price" and discounts. In fact with rebates or Zero % financing the 2006 model was about $1700 cheaper to buy for most consumers.

But now the Warranty was changed to be:
Basic: 3 yr. / 36,000 mi. Drivetrain: 5 yr. / 60,000 mi. Roadside: 5 yr. / 60,000 mi. Rust: 5 yr. / Unlimited mi ----This was a Huge increase with much hoopla from Ford about it.

Chevy and Dodge made very similar warranty increases.....

Hummmm seems to me that with the current experiance we have, there are several good examples of a cars getting a longer term warranty with no significant cost increase of the vehicle cost.

You should also Consider these complicated features:

The smart fortwo comes standard with many active safety features that will introduce you to a whole new set of acronyms and keep you safer in the process.

ESP® -- One of the standard features on your smart fortwo is something called Electronic Stability Program or ESP®. When the ESP® sensors indicate a skid or swerving of your car, they automatically control the engine throttle and the Anti-Lock brakes to maintain your present course. Also integral to the ESP® safety system is Electronic Brake-Force Distribution Control (EBD), which helps to prevent the rear wheels from over-braking.

ABS - Another feature of ESP® is the Anti-Lock Brake Systems (ABS). With ABS, you can hit your brakes hard knowing the ABS circuitry will apply and release each brake independently to keep you from skidding regardless of the type of road surface each wheel is on.

CBC - When you enter a corner and apply your brakes, the unequal forces at each wheel can result in a skid or a complete "end-around". With Cornering Brake Control (CBC) the inner wheels require less brake force due to less traction. CBC counteracts a potential tendency to swerve by distributing brake forces selectively - even below the threshold of ABS activity.

BAS - Avoiding accidents is often measured in inches. Electronic Brake Assist can sense when you have stepped on the brake quickly but have not applied it hard enough to activate the ABS system. It can be the difference in reaction time you need to avoid an accident.

ASC and ETC - Acceleration Skid Control (ASC) and Engine Torque Control (ETC) are designed to help the smart fortwo move forward on slippery surfaces. ASC acts much like a differential lock but does it by directing power to the wheel offering optimum traction. ETC provides engine control when driving on slippery surfaces. It "feathers" the throttle on low traction acceleration and limits torque in down shifting applications.

HSA - The auto/manual transmission of the smart fortwo is equipped with Hill Start Assist (HSA) which allows you to pull away on a hill without having to apply the handbrake. As you lift your foot from the brake pedal while sitting stopped on a hill, HSA holds the brakes on for about a second to give you time to move your foot to the accelerator. So don't worry about driving your smart fortwo in San Francisco.

Knowledge is power....