I absolutely don't want to be a prophet of doom, don't think that is needed but realistically things need to improve before the US smart can be considered an unqualified success.
I wouldn't break out the champagne either - it's going to be a long road - but I do think it's a bit premature for MT to insinuate that the smart is unsuccessful. I agree the dealers are likely hurting (like all other dealers), but from smartUSA's initial perspective of 15K units/year, they are still ahead of the game.
This I don't understand. I think low energy prices are good because people of limited resources can better afford to go where they need to go, heat up their homes, and generally be better able to afford the needs and comforts of life.
How anyone can say that cheap oil is bad is just beyond me. Expensive fuel hurts people.
Anyway, consumers are saying that they prefer versatile, comfortable transportation in this time of crisis. We love our convertible smart which we generally drive with the top down, and it has become our primary car with three times as many miles/yr as our other vehicle, which is a large, conventional sedan.
Yet one must recognize that the general public is voting with their wallets, and what the public is saying is that they want more than two seats, they want a large trunk or cargo space, they want a stable wheelbase, they want a spare tire, and they want options such as nav, parktronic, etc. Our smart, which has none of that, is now revealing itself to be just a nichy niche car which most people simply do not want in their driveway.
Ford F -Series: 33,877
Toyota Camry: 25,745
Honda Accord: 20,826
Toyota Corolla; 20,741 Chevy Silverado: 19,401
Honda Civic: 16,093
Honda CR-V: 14,554 Dodge Ram: 13,452 Chevy Impala: 13,047
Nissan Altima: 12,149
Look at the Camry, the second best selling car in the land. The thing weighs 80% more than the smart! That's what the people want, obviously. And good for them! Choice is good.
I wouldn't say that the smart is a big success nor do I say that they're lacking or going under. Sure they sold 30,000 units last year but as the negative reviews, faux rumors (crashes), and gas prices lower, people seem to lose the point of it all. The smart is still a niche car and as a company they have been through a tough 11 years but I think that they'll prosper in the end. Give them time and the smart might become as popular as Minis after they were here after a few years.
They just need to strategize and keep earning profit. After they have earned enough they can open new plants and introduce new models that actually took time to R&D on (like the fortwo).
I have a smart now. My next car will be a smart. Wouldn't trade it for anything unless the other vehicle was worth more. Then I would trade, sell the vehicle I got and buy another smart. The extra money would be blown on smart add ons.
How anyone can say that cheap oil is bad is just beyond me. Expensive fuel hurts people.
#1, I was referring to the effect of low oil prices on smart sales. There can be little doubt that lower gasoline prices would remove the incentive for some people to move to fuel efficient vehicles.
But, beyond that: Many (myself included) believe the prices presently are artificially low. And, that a more realistic pricing would encourage enterprise and individuals to conserve a limited commodity. The easy oil is gone, and extracting what is left will become increasingly expensive ... meanwhile the world demand is increasing dramatically (witness China & India, among others).
Over the next several decades civilization will be forced to alternatives. Developing these alternatives takes time and money. Conservation NOW will help get us through to 'the future' energies.
Do I do everything possible to contribute to the cause? Honestly, no. It's too easy to punch the gas peddle when you're paying less than $3.00 per gallon. If it cost $80 to fill a smart fortwo, you can rest assured I'd be a lot more light footed, as would most everyone else. And, that's a good thing.
Interesting perspective, NCC. I agree with your main point, but the greedy side of me wants to ignore the future and enjoy the current (relative) low cost of gas.
What do you think this country would be like if gas went up to $7.00/gal (the equivalent of a lot of Euro countries) and stayed there?
What do you think this country would be like if gas went up to $7.00/gal (the equivalent of a lot of Euro countries) and stayed there?
It will. Not a question of IF, but WHEN. And, $7/gallon is not a ceiling. It will change things for sure. I don't think anyone is fond of the immediate consequences. But, on a scale of decades the tea leaves say fossil fuels will become prohibitively expensive. We have to think ahead. Our civilization completely relies on the availability of energy ... and also relies on freedom from fossil fuels. Burying our collective heads in the sand and denying the obvious is not a solution.
There have been over 30,000 smarts sold in the U.S. Did smart or Penske state any sales goals publicly that would make this number seem bad?
Quote:
Originally Posted by rfernatt
If I recall correctly, Penske had stated a goal of 15,000 units per year initially and then had to scramble when the first year's demand hit nearly 25,000.
During the third quarter, smart USA wholesaled 3,401 units. The challenging new vehicle sales environment in the U.S. continues to impact smart fortwo vehicle sales. In response, smart USA introduced new finance and marketing campaigns in October designed to sell through the balance of the 2009 model year inventory, which resulted in an after-tax reserve of $3.1 million, or $0.03 per share, in the third quarter. For the year, smart USA now expects to wholesale approximately 15,700 units.
It looks like smartUSA is on target with their initial projections anyway. If the 2009 numbers hold to their estimate, they will have sold over 40,000 cars in two years. That's not too bad in this economy, IMO.
From a January 2009 article: “We were contemplating 15,000 to 16,000 in our first year, and as we entered into probably the most unique marketing of any brand coming into the market — Smart with a $99 reservation system — the Internet became the medium for us to build to a brand,” Penske said in an interview last week at the Detroit auto show. Source: Penske Is Smiling Over Smart’s U.S. Start
3.476 cars through March 08
2.683 cars in April
2,695 cars in May
2,545 cars in June
2,559 cars in July
2,420 cars in August
1,778 cars in September
2,236 cars in October
1,889 cars in November
2,341 cars in December
24,622 total for 2008
2009 sales:
1,776 cars in Jan
1,415 cars in Feb
1,746 cars in Mar
1,345 cars in Apr
1,169 cars in May
1,116 cars in June
1,418 cars in July
1,622 cars in August
814 cars in September
37,043 cars total so far; 12,421 in 09 alone
smart USA delivered 2695 cars in May 08; in May 09 they delivered 1169 cars. For September 09 they delivered 814 cars. They are hurting, no way around it. Penske does not have an unlimited reserve of cash; he's a car guy but he's also a shrewd and successful business guy. Unless things pick up significantly and soon he's going to have to decide how long he can stand to let smart USA hang on. Just my .02.
smart USA delivered 2695 cars in May 08; in May 09 they delivered 1169 cars. For September 09 they delivered 814 cars. They are hurting, no way around it. Penske does not have an unlimited reserve of cash; he's a car guy but he's also a shrewd and successful business guy. Unless things pick up significantly and soon he's going to have to decide how long he can stand to let smart USA hang on. Just my .02.
Compared to the gung-ho first year, sales are certainly down. But, at some point before smartUSA began selling cars here, someone determined that sub-20,000 units/year was profitable enough to make it worth the effort. Perhaps the lack of official advertising, etc. reduces their overhead enough to permit profitability with fewer units? Here's a 2007 article that cites MB own projections of "around 20,000 sales per year": U.S. customers lining up for Smart cars. Again, considering the economy and sales drops seen at other brands, I'm not sure that smart is looking all that bad at the present. Things could certainly be better (ala last year), but in the scheme of things, I think the glass is half full.
But, you're right, we need increased smart sales even if the ceiling for the fortwo is 20,000 units/year. If sales stagnated at that 800 per month level, it wouldn't be good for smartUSA or existing owners.
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