Smart turning heads Long-awaited cars arrive in U.S. market

A car doesn’t have to be big to command attention, as Buffalo’s new Smart car dealership can attest.

When employees drive the tiny cars off the lot, people often point, gather around and take cellphone pictures.

After a considerable buildup of attention, and a long wait for the most devoted enthusiasts, the vehicles that measure less than nine feet long have arrived in the U.S. market.

Smart Center Buffalo opened last week, a dealership that covers an Upstate New York territory that stretches east of Syracuse. The new showroom is connected to Mercedes- Benz of Buffalo’s dealership on Main Street in Clarence.

The Smart ForTwo vehicles, which, of course, have room for two people, have drawn interest for their funky look and “green” credentials, with fuel efficiency of about 40 miles per gallon in city driving.

Brooke Arber, general manager of Smart Car Buffalo, worked for a few years on bringing Smarts here in her job with the Mercedes-Benz dealership. Internal decisions and strategy shifts at Mercedes-Benz’s parent company delayed the process, but the local dealership was finally rewarded for its patience.

“I’m elated,” Arber said. “The customers that come in here are so excited about this vehicle.”

The buzz around the Smart’s U.S. debut calls to mind the arrival of other head-turning vehicles of the recent past, including the Mini Cooper, Hummer H2, Chrysler PT Cruiser and new Volkswagen Beetle. They received a sales boost from their distinct appearance and the “first on the block to own one” allure.

Last summer, Smart brought a few of its vehicles to Buffalo as part of a road show to stoke interest and offer test drives for the curious.

Since last year, more than 30,000 people from all 50 states have submitted $99 refundable deposits toward the purchase of a Smart, said Ken Kettenbeil, a Smart USA spokesman in Michigan. He said the “vast majority” of the reservations have been converted to actual sales, though he declined to give an exact percentage or offer sales projections.

Smart USA plans to have 74 dealerships to open this year, about 68 of them by Valentine’s Day, Kettenbeil said. Depending on where they live, people who place a reservation today probably will have to wait until late this year or early next year to acquire their Smart, he added.

About two-thirds of the 74 Smart dealers are affiliated with Mercedes-Benz, selling Smarts with either a “store-within-astore” concept or a separate facility. The remainder are standalone operations, not connected to another brand.

Retail prices for the cars range from below $12,000 to more than $16,000, depending on the features of the three versions.

Smart Center Buffalo has three of the vehicles for display in its showroom, and two others it is using for test drives. Seven vehicles purchased by people with reservations arrived for delivery last week, and a few more are expected to arrive by mid February for delivery, Arber said.

Smart will eventually have its cars available for purchase on dealer lots, but the company is first filling orders placed by customers through its reservations system. Mercedes-Benz is assembling the cars at a plant in France, and Michigan-based Penske Auto Group is importing them to the United States and distributing them to dealers.

Philip Reed, a car expert with Edmunds.com, said Smart is arriving in the United States at a good time. The small-car segment is growing quickly, with gas prices running high and other “cool” small cars, like the Honda Fit, catching on, he said.

“Initially there will be an enormous amount of excitement and enthusiasm,” Reed said.

He believes the real test of the Smart’s staying power in the U.S. market will come after its second or third year on sale, once the novelty phase passes. Its long-term success could depend partly on the price of gas at that time and the vehicle’s safety record, Reed said.

The National Highway Traffic Safety Administration, which conducts crash tests partly to generate consumer information in the form of “star” ratings, has not yet tested the Smart, said Rae Tyson, an agency spokesman.

Even so, the vehicle’s U.S. distributor, Penske, is responsible for guaranteeing the Smart meets U.S. safety and emissions standards, Tyson said.

Arber said the first two questions she commonly gets about the Smart are about its safety and its performance in the snow.

Smart officials point out the vehicle’s safety features include a reinforced steel shell that protects the occupants, plus four airbags.

As for the snow, Arber notes the cars are sold in 36 other countries, including places like Sweden and Finland, which get their fair share of wintry weather. The cars are particularly popular in urban areas of Europe, where streets are narrow and parking spots can be tough to tuck into.

Aster said prospective buyers who visit the dealership seem willing to wait to get their hands on one.

“So far, everybody who is excited about it is willing to put in a reservation,” she said.

Source: The Buffalo News by Matt Glynn