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Old 05-24-2008, 09:47 AM   #11 (permalink)
 
Join Date: Mar 2008
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I had to go 300+ miles to get my Smart. We have no dealer in WV. BUT....I did call the largest M-B dealer in WV this past week...and after the owner sold a used 400 mile Smart for about $4000 over MSRP he is now thinking about a Smart dealership. Keep in contact with dealers....the quick popularity of Smart may change some minds!

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Old 05-24-2008, 06:59 PM   #12 (permalink)
 
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The reason there are so few dealers has less to do with lack of dealer interest than the parent company keeping strict control over first year distribution. It's a new product, they know they can only produce a certain number per year, and they also know it'll take a few hundred sales per dealer to maintain profit margins. From a business standpoint, it's better to disappoint those in Louisiana and Alabama than risk everything by stretching themselves too thin. In Europe, I don't imagine there are 1500 dealers like the USA demands; we're spread out over 3,500 miles. There are only 74 dealers to service 30,000-50,000 cars in the first year. Plus, I can imagine this is a test market - huge risk for the entire brand. If they fail in any area, it will be known to 200 million drivers. A major recall or two and their profit margin could be wiped out, making shareholders pull the plug.

Likewise, the Aptera is only available in Southern CA as I understand. I would imagine the same reasons apply, especially because the Aptera is breaking ground in a number of areas beyond where the smart dared to venture.


If the smart holds its course and speed, demand will be high enough that the company can dedicate more production lines to it. In 2010 I predict we'll see 100,000 smarts on USA roads, and many more dealers.
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Old 05-24-2008, 09:39 PM   #13 (permalink)
 
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"It's a new product, they know they can only produce a certain number per year, and they also know it'll take a few hundred sales per dealer to maintain profit margins. From a business standpoint, it's better to disappoint those in Louisiana and Alabama than risk everything" - SuperGeek

Problem is there are states like Fla., Tx., Ca., that have as many as 7 dealers, some being very close together in some instances. There are I think 7 entire states that have no dealers at all. I think their reasoning was centered around some other point.
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