smart reports 30% attrition - NY Times 1/14/08

[mr_Cash]

Originally Posted by MicroNut

Very Interesting!

I'm surprised that the attrition rate is so high among, presumably at this point, 1173's. Surely it can only go higher as they work further down the line to the less fanatical reservers.

$30,000 pretax earnings is a lot of cash,

when people see

recent headlines such as 20,000 people to lose their job at citibank,
the economy appearing finally to be entering a downturn,
house price declines reducing an easy consumer funding source, and
the unemployment rate rising.

smart typically is not a primary car, for families, having only two seats, and limited trunk space.

smart is more of a discretionary vehicle, where a bigger car is also kept on hand, for the bigger loads, highway trips, hauling the kids and their friends, etc.

$30,000 pretax earnings is a lot of pocket change, if theres a possibility of losing ones job, and the existing bigger required primary car is in satisfactory ongoing running condition.

and, waiting a while for something else new, during better times, may not be so long.

new technology seems to keep rolling along.
the all new 2009 honda fit only 9 months away.
the recent report of a new electric technology allowing an suv to get 150 mpg.
smart hybrid likely in a few years.
china close to breaking into the usa market with all-new fuel efficient small cars in the next five years,
etc.

even if one likes the smart, these issues and more, complicate the final decision to commit $30,000 pretax earnings, that might be handy to have later.

[rrrucke]

Of the 30 reserved orders at my dealer, 2 people backed out but of course the orphans have been obviously snatched up.

[spdickey]

Okay, that's 6.6% attrition AFTER confirmation. Small sample, but it does happen.

[bmx43]

Originally Posted by spdickey

Okay, that's 15% attrition AFTER confirmation. Small sample, but it does happen.

dude. your math sucks. try again.

[spdickey]

Sorry had the calculator backwards, 6.6%

[Carnut]

"DETROIT -- Smart CEO Anders Jensen told Automobilwoche, sister publication of Automotive News Europe, the carmaker is still deliberating how its platform can be expanded.

Rainer Schmückle, Smart chief operating officer and board member of Mercedes-Benz Cars, told the German press agency, dpa, in Detroit that the automaker has not decided how such a variant would look or whether it would wear the Smart of Mercedes-Benz badge.

"It is all about watching how automotive markets develop and in which segments growth is taking place," he said. "We are considering placing it between the Smart ForTwo and the Mercedes A and B class."

He said the discontinued four-seater Smart ForFour was not a bad idea, but was executed badly. He did not rule out building on this platform again.

More than 20,000 Smarts have been ordered in the US. About 70 percent of 30,000 reservations have turned into definite orders, Schmückle said."

There you go again - the 30K figure, not the 45K figure. Of the 30K only 20K configured according to the above. Lot's of ungawa floating here. It's hipwaders time!

[spdickey]

That 30,000 may be active reservations after subtracting the cancellations before confirmation? Things are indeed slippery here.

BTW, the MB A-Class is pretty cool.

[bmx43]

Originally Posted by Carnut

"DETROIT -- Smart CEO Anders Jensen told Automobilwoche, sister publication of Automotive News Europe, the carmaker is still deliberating how its platform can be expanded.

Rainer Schmückle, Smart chief operating officer and board member of Mercedes-Benz Cars, told the German press agency, dpa, in Detroit that the automaker has not decided how such a variant would look or whether it would wear the Smart of Mercedes-Benz badge.

"It is all about watching how automotive markets develop and in which segments growth is taking place," he said. "We are considering placing it between the Smart ForTwo and the Mercedes A and B class."

He said the discontinued four-seater Smart ForFour was not a bad idea, but was executed badly. He did not rule out building on this platform again.

More than 20,000 Smarts have been ordered in the US. About 70 percent of 30,000 reservations have turned into definite orders, Schmückle said."

There you go again - the 30K figure, not the 45K figure. Of the 30K only 20K configured according to the above. Lot's of ungawa floating here. It's hipwaders time!

easy there. of that 30k figure, only a certain percentage has even been sent the configuration confirmation e-mail that only started in late August. so that would make sense that there is still a backlog of rez holders who have not been asked to "order" their cars as of yet. i think it's been pretty well documented on this board that people are wondering what happened to the confirm process.

[bmx43]

Originally Posted by Carnut

He said the discontinued four-seater Smart ForFour was not a bad idea, but was executed badly. He did not rule out building on this platform again.

i have to agree with this statement. as far as the execution. it simply did not look "smart" enough and did not share brand continuity.

[Smart_ABQ]

How can they say that 70% of the 30,000 reservations have turned into definite orders when the confirmation e-mails to turn the reservations stalled with May/June? Is it possible that they have already confirmed 20,000 units before they scaled back the confirmations? I'm at 1411 so I'm wondering where in the 30,000+ world my reservation sits.