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Mike700
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DON'T SHOOT THE MESSENGER. Someone I know who is an economic news junkie claims he read in an economic news mag that Smart is pulling the plug on their US import and dealer network at the end of the 2016 sales year due to continuing poor sales even after the intro of the 453. He doesn't recall what mag where he read it. I don't believe it myself but I live in Chicago and I bought my 453 the first week they were on sale but still have not spotted another 453 on the road. OK - I have braced myself for the coming onslaught of responses!
 

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Sounds interesting, but the timing seems implausible. Plus, Mercedes needs smart to keep their CAFE numbers in line in the face of the ugly gas hogs they sell to the conspicuous consumers! However, unless sales pick up soon, maybe it is true and Mercedes will tie their can to the Electric B Class for the purposes of CAFE.
 

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...an economic news junkie claims he read in an economic news mag that Smart is pulling the plug on their US import and dealer network at the end of the 2016 sales year due to continuing poor sales even after the intro of the 453. He doesn't recall what mag where he read it.
With apologies to Mark Twain, "The rumors of smart's death have been greatly exaggerated."

No messengers being shot but it is hard to discuss the heresay of an "economic news junkie" who may be recalling a "bad mushroom" dream?

The imminent death of smart "worldwide" has been written for years.

Until Daimler begins cutting the bloatstaff at smartUSA, and buying the M-B dealers out of what must have been an EXPENSIVE Franchise Fee, the Café Credit beat goes on.

So let's just say, while the smart tent may be sagging until the tent pegs are pulled up, so what?

http://www.wsj.com/articles/daimler-to-reboot-its-smart-car-1441302587
 

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With the new 453 being around for a little over three months, a Cabrio in the wings for the spring and then an ED later next year, MB USA is not going to be abandoning Smart anytime soon. You can take that to the bank. :wink:
 

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smart USA only sold 662 units last month. That includes the new 453 model, which they haven't advertised. MB pulled smart pulled from the Australian market already. smart will most likely continue sell well, in the European market place. I don't see sales number improving this December. Fuel being around under 2 bucks a gallon regular. Isn't helping either. You can not continue to just offer one niche model.

The smart city car, not the only one hurting. For the first time Fiat only sold, a little over 300 500's, compared to the smart. The new 500X, is there leader if you want to call it that. Bigger here is better, in a small way.
 

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And somewhere in those 662 are Café Credits that grease the skids for the sales of HIGH MARGIN gas guzzling AMG's...
Two separate brands smart, and MB. Same with Fiat. 4 different brands. Fiat, Ferrari, Maserati, Alfa. Bentley and VW. No Cafe, credits connection. The smart is not sold under the MB name plate. The smart just shares the show room, with MB's.
 

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Sounds interesting, but the timing seems implausible. Plus, Mercedes needs smart to keep their CAFE numbers in line in the face of the ugly gas hogs they sell to the conspicuous consumers! However, unless sales pick up soon, maybe it is true and Mercedes will tie their can to the Electric B Class for the purposes of CAFE.

However, the smart sales are so small, do you really think in the big picture, that has a serious impact on CAFE? Not me. Then factor in the loss building each and everyone they DO sell. Sounds spot on to me... :nerd:
 

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Two separate brands smart, and MB. The smart is not sold under the MB name plate. The smart just shares the show room, with MB's.
You may want to do a little research on Café Credits?

In this case the credits are OWNED by Daimler and "shared" as they see fit.

Café Credits can actually be sold, ask Elon Musk. And in the case of Fiat shared...
 

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With the new 453 being around for a little over three months, a Cabrio in the wings for the spring and then an ED later next year, MB USA is not going to be abandoning Smart anytime soon. You can take that to the bank. :wink:
Read Dr. Winkler's interview in Automotive News 6/16/16
 

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Factor in all the expenses for smart worldwide management, research, engineering, testing, certification, legal, staff, parts, manufacturing facilities and equipment, misc administrative costs, promotions, incentives and advertising, etc. Given the current low sales in North America, I wonder if smart worldwide has taken an overall loss on each new 453 car that has been sold so far.
 

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For anyone to comment:

Given the current low sales in North America, do you think smart worldwide has taken an overall loss on each new 453 car that has been sold so far?
In the U.S., it's all about the Café Credit$ . . .

Now do the U.S. dealers make money on The smart Brand?

With all the "expenses for smart worldwide management, research, engineering, testing, certification, legal, staff, parts, manufacturing facility and equipment, misc administrative costs, promotions, incentives and advertising, etc." unless you are one of the high volume CARB locations it is highly unlikely?
 

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Yes, credits. Beyond that, I'm wondering if the total cost for smart worldwide to produce each 453 vehicle sold has so far ended up costing them more than they've collected in revenue. Or maybe the quantity they've sold so far has been profitable (without factoring in the benefits of credits at all) since a lot of the 'infrastructure' and staff was already in place.
 

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King of Smart Gadgetry
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When MB sells a new Smart I guess they make an initial profit from the sale of the car. After that initial sale is there any means that MB makes any further money from that car? Like do they make any profit from parts or servicing the car, or is the only point of profit for them when the car is initially sold new from the dealer? DCO
 

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When asked some time ago if the 453 would be profitable, Dr D said it would be from day one.
I'm guessing that the good Dr. based her comments on the numbers provided by her bean counters using "projected" sales?

Question today is in reality, are those sales targets being met?

Likely too the proforma is totally different for the (Smartville) fortwo and the (Renault) forfour?
 
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