Interesting info on the Penske Mercedes handover

[jwight]

Item 1.02 Termination of a Material Definitive Agreement
On June 30, 2011, smart USA Distributor, LLC, our wholly owned subsidiary, completed the sale of certain assets and the transfer of certain liabilities relating to the distribution rights, management, sales and marketing activities of smart USA to Daimler Vehicle Innovations LLC (“DVI”), a wholly owned subsidiary of Mercedes-Benz USA. The aggregate cash purchase price for the assets, which included certain vehicles, parts, signage and other items valued at fair market value was approximately $44.5 million. This amount includes reimbursement of certain operating and wind-down costs of smart USA.
In connection with the transaction, smart USA’s existing agreement with Daimler AG to distribute smart fortwo vehicles was terminated as of June 30, 2011. This terminated agreement previously governed all aspects of our distribution rights, including sales and service activities, service and warranty terms, use of intellectual property, promotion and advertising provisions, pricing and payment terms, and indemnification requirements relating to product liability and other claims.
We purchase motor vehicles from Daimler AG and Mercedes-Benz USA for sale at certain of our dealerships. Affiliates of these entities are lenders under our U.S. credit agreement. These lenders also provide us with “floorplan” financing and consumer financing.
Item 2.01 Completion of Acquisition or Disposition of Assets
The disclosures under Item 1.02 and the unaudited pro forma condensed consolidated financial statements filed as Exhibit 99.1 hereto, which reflect certain financial information excluding smart USA, are incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits

99.1
Unaudited pro forma condensed consolidated financial statements

PENSKE AUTOMOTIVE GROUP, INC. - FORM 8-K - July 5, 2011

[b322da]

Very interesting, for example how it might affect the discussion elsewhere here about the relationship between smart and Daimler and Mercedes, in that Penske's smart USA Distributor LLC apparently conveyed its assets to Daimler Vehicle Innovations LLC, a wholly owned subsidiary of Mercedes-Benz USA.

Does this cast more light, or more confusion, on the question of putting an MB logo on a smart?

Jim

[Mike T]

Nah, that's still off