Have read an many interesting article's on how people have simply quit buying trucks and SUV's. Now there saying that the big 3 have got to start selling small cars and the days of high profit trucks and suv's are over. Now Chevy and Ford are planning on selling small high mpg cars. Now you throw the Toyota IQ and the VW Polo in the mix and buyers are going to have many choices to choose from when it comes to 40+mpg cars. What do you think the business strategy is going to be for Smart? Don't you think it will be hard to compete against other car companies that have a much larger dealer network? And from everything that I have read the newer cars are going to be priced under $20,000 and will also have 4 door models.
Being first and a M-B will not hurt the Smart.....People that don't own a Smart know about it through all the media attention. Very few know a IQ or Polo. If nothing else Smart has a head start.
The interesting point you make DeltaDart is that companies such as Toyota, Nissan, and VW have current production models selling in Europe and Aisa today. To the best of my knowledge, the domestic auto makers do not have models (micro cars) that they sell only in Europe / Asia. I admit I know squat about the automotive market but I will speculate that is is easier to take a current production model (Smart / VW Polo) and bring it to the US Market than to build from scratch a new product.
That being said, in the next few years current (Asian) hybrids will have evolved into their respective next generation and domestic automakers will be either entering of bringing out their 2nd generation product. But they certainly have lots to learn. Remember, the Honda Insight and Prius were in production almost 8 years ago.
And for Smart? My Smart 451 is suiting its role as a daily commuter car just fine. I expect that I'll be in the market for the Plug-In Smart with aux. generator when it is available to the general pultic (2/3 years?) Right now my understanding is that the (beta) Plug-In Smart is running in London and Los Angeles using Nickel-Hydride batteries and when Lithium-ion batteries are installed in the Smart, this future car should suit my commuter needs even better.
I hope Smart can refresh the 451 in 2 years with the turbo mitsu engine and perhaps at the same time offer the Plug-In with Li-Ion batteries.
Time will tell..... But, DeltaDart, I do expect to see a good representation of smaller cars from Europe and Aisa offered in the US. The world continues to consume oil and China/India are going to have a significant impact on energy costs.
The US auto maket is a big one and i am sure VW would like to increase their share. For Toyota, it should be a no-brainer. Smart will also need to keep up if new products if they wish to grow in this new market.
Labels, brands can change instantly. In Mexico, we know the Mercedes Sprinter van/airport bus/camper/UPS/DHL/etc. In the USA it is a Dodge and I think I've even seen it with another 'marque'. A very common Mexican car is the ATOS by Dodge; which is actually a tiny Hyundai. Remember, many 'US brands' are actually made in Canada, Mexico, Brazil, etc.; especially the more economical models that aren't (yet) sold in the USA. Wasn't that the same with the Smart? They've been around for ten years; just not in the USA. My own is a 2007 with the gasoline Mercedes Turbocharged engine and six speed tranny, Grundig sound, etc. I remember seeing Toyotas in Japan that we saw in the USA ten years later and tiny, luxury, economical Fords and Chevrolets in South Africa that we never did see in horsepower hungry US markets. Boy is that change ready to happen.
Last edited by RVGRINGO; 07-06-2008 at 05:56 PM.
Reason: Spelling
A few months ago when I heard that the Toyota Prius outsold the Ford Explorer I almost did not believe it. That is when I knew there was a huge social change happening. Now with GM shutting down truck and suv plants I see the US market as finally wanting small high mpg cars. Since the SMART is selling so well I really hope more dealerships are being planned. If not I think the SMART numbers will go down when the other mini cars start showing up at the local dealerships. Remember what happened to the Yugo? At the very least the SMART is the perfect commuter/city car. It could be like the original VW Beetle(except the SMART has a better heater!) where almost everyone owned one and used it for 95% of there actual driving. I sure hope more dealerships are in the work's. Around here we have dealerships that sell 6 or 7 different makes of car's. Maybe thats the plan to get more dealers in the SMART network.
The Smart will prevail. Been to Europe dozens of times and microcars are a dime a dozen. By far the most popular of them is the Smart. They have small cars from all manufacturers, even many we in the US have never seen.
I think the Smart 5 yrs out will be firmly ensconced in the US but I don't think the goal is to be number one in unit sales. I think Smart's intent is to be the cream of the crop of the micro-cars - sorta the MB of micros. Which is an idea thats a bit peculiar in American business - big is not always better. So its not so much about competing head-to-head with all the others as it is building credibility and reputation. After all - MB does quite nicely in their market segment without having to dominate unit volume. Does Smart really want to sell 2 million units a year? I suspect not.
I'd bet money on Smart being a presence in 5 yrs if for no other reason than Penske. If Richard Wagoner (GM) or Alan Mulally (Ford) sat at my kitchen table trying to get me to invest in them - no way. If Penske showed up I'd get a second mortgage and put my money on him - he's a real businessman.
My prediction is that in 5-years the wait for a new smart will be two years, the factory in Hambach will up production from 600 a day to 645 a day, gas will level off at 8.50 a gallon and on SCOA there will be just as many people whining about the orphans getting snatched up while they are still at the end of the line!
easier to take a current production model (Smart / VW Polo) and bring it to the US Market than to build from scratch a new product.
In a sensible world, you would, of course, be 100% right.
Remember, however, that the original smart was ilegal in the U.S. The original smart was sold in Europe for almost a decade, but did not meet U.S. crash regulations and possibly emissions.
Yes, the Japanese have the Kei cars (a host of smart-size Toyotas, Nissans, Mitsubishis, Suzukis, etc.), and the Europeans have the Cincuecentos, Polos, etc. But do these meet U.S. regulations?
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