Smart might not make it in America

[Alan Smithee]

Originally Posted by Big Panda

Do the math...

You and the others are forgetting a very big piece of the pie...service departments are the primary source of dealer franchise income. Consider that smarts will start going off of warranty in the next couple months, and that most dealers are combined with Mercedes and have similar labor rates, and the company's future isn't quite so dim.

I do agree with whoever suggested that they need to bring over the turbo models. Not only would this tap into the MINI market, but it would also help the tuner aspect of the smart take off. And it would provide something new for current smart owners to trade up to.

I also agree with whoever suggested that the electric smart is a non-starter (no pun intended). The smart is already handicapped in terms of practicality; a short range will not help. Gas prices will need to go through the roof first.

[nprsmart]

Originally Posted by Alan Smithee

You and the others are forgetting a very big piece of the pie...service departments are the primary source of dealer franchise income. Consider that smarts will start going off of warranty in the next couple months, and that most dealers are combined with Mercedes and have similar labor rates, and the company's future isn't quite so dim.

...As my 20k service bill will attest. I've never had a $400+ oil change for a car I've owned before this.

The good news is that recession is over and once demand starts pushing gas prices back up, the smarts should start moving off the lots faster.

[wahi]

At least, it made it to our shores...

If... smart ceased to be sold here, I'll still keep my smartbiru, drive it like those Triumphs and Fiats of yesteryears, and buy the next (gasp!) cookiecutter gas sipper for work and commute..

However, I think that smart name in the US will prevail, given its positive characteristics and qualities.

[JPaul]

For Daimler, smart is fine in the US market: it's not losing money. So, we're in for the duration.
Not the same can be said for some Dealerships...
IMHO, of course.

[Big Panda]

Originally Posted by JPaul

For Daimler, smart is fine in the US market: it's not losing money. So, we're in for the duration.
Not the same can be said for some Dealerships...
IMHO, of course.

You're absolutely correct. "Daimler" and "smart" is fine, the DEALERSHIPS are another story.

I've been in this business too long to believe that smart centers can survive on selling 14 cars/month with very little Parts and Service income and NO income from the selling of Used Vehicles.

Something has to change.

[shark]

Little bird tells me only one center was profitable last month.

[John_H]

Originally Posted by Big Panda

I've been in this business too long to believe that smart centers can survive on selling 14 cars/month with very little Parts and Service income and NO income from the selling of Used Vehicles.

No income from used vehicles? What smart center makes no income from used vehicles? (or is the sarcasm face in there for that reason?)

[Big Panda]

Originally Posted by John_H

No income from used vehicles? What smart center makes no income from used vehicles? (or is the sarcasm face in there for that reason?)

OK....sorry. Guess I 'assumed' that they all do not have Used Vehicles for sale. There IS NO USED CAR LOT at SCI. They also do not take trades, as such. They will take your present car and 'shop it around' with wholesalers to get you a price, but they will not keep it to sell.

Sorry if ALL smart centers are not like this.

[CruisingAZ]

I think all car sales are down so I do not find it surprising that smart has dropped as well. Those who really wanted on picked them up the first year, now it is word of mouth and the econemy is not great for new car sales. When gas goes up again, and it will, then our beloved smart will once again be a smart sale.

Some dealers may close, but most dealers are partnered with MB so they will just park the smart in the showroom next the their other cars and proceed with business as usual. The money has already been spent on showrooms and shops so there is no additional cost and the customer base is there for the service department.

[forestacademy]

Originally Posted by Big Panda

OK....sorry. Guess I 'assumed' that they all do not have Used Vehicles for sale. There IS NO USED CAR LOT at SCI. They also do not take trades, as such. They will take your present car and 'shop it around' with wholesalers to get you a price, but they will not keep it to sell.

Sorry if ALL smart centers are not like this.

If they don't take trades you take a hit in taxes. Trade in vlue is taken off the sale price for the sales taxes here