Link: http://money.cnn.com/2006/06/07/Autos/pluggedin_fortune/index.htm

Is Smart coming to the U.S.?
The loss-making city car from Mercedes-Benz may finally be headed to America.
By Alex Taylor III, FORTUNE senior editor
June 8, 2006: 3:02 PM EDT

NEW YORK (FORTUNE) - You can see tiny Smart cars, those egg-shaped two-seaters, doubled up in parking spaces or sitting on city sidewalks all over Europe, where they have been sold since 1998. But Smart has never come to the United States.

The Mercedes-Benz unit has struggled to make money from the day it was conceived, and writeoffs to date run to the billions of dollars. With losses so steep, plans to sell the car here have been repeatedly delayed as Mercedes has struggled to find a profit-making formula.

Now, DaimlerChrysler chairman Dieter Zetsche is dropping hints that Smart will make its way to the United States. Speaking to reporters in Portland, Oregon last week at an event marking the 25th anniversary of Daimler's acquisition of Freightliner trucks, Zetsche said a final decision on Smart for the U.S. would be made this month, once a verdict was reached on how to distribute it.

He added in his German-tinged English, "The tendency is positive in this regard."

Translation: Consider it all but done.

Whether selling Smart in the U.S. is, in a word, "smart," is another question. Even with gasoline selling for $3.25 a gallon, how much demand is there for a car that can only carry two people and which would seem to provide little crash protection for collisions from any direction? (The Smart ForTwo earned a rating of three out of a possible five stars in a European front crash test. Frontal crash tests only apply to collisions with vehicles of similar size, however.) For a time, Mercedes contemplated selling a Smart sedan or SUV but discontinued both models in an effort in an effort to stem losses.

The ForTwo, the original two seat Smart, is being redesigned and will make its European debut in 2007. The version sold here will meet U.S. emission and crash standards. But it is hard to imagine that it will appeal to anyone living outside a major metro area. Its cramped interior and short wheel base don't lend it to long trips -- or even the 30-mile daily commutes that more Americans seem to be afflicted with.

There is room for a little optimism. Two other new small car brands, Mini and Scion, have done spectacularly well here in the last couple of years. They are in short supply and sell strongly without the usual incentives. Each has used sharply different pricing strategies. Made by Toyota, Scion is budget-priced -- starting at $13,320 -- to appeal to younger buyers, while Mini Cooper, which is owned by BMW, is positioned as a premium small car, and sells for $18,000 and up.

Smart prices will probably land someplace in the middle. Mercedes' lavish cost structure makes it unlikely that the car can be budget priced. At the same time, there will be an upward limit because Smart doesn't have the fun-to-drive or cute characteristics that Mini does either. It will likely sell on newness, stylishness (or lack thereof), and fuel savings.

As one might expect, the little ForTwo also gets excellent fuel economy. Smart claims fuel economy ranging from 46.3 miles per gallon in the city to 70.6 mpg on the highway.

Many industry executives are skeptical about Smart's prospects. "I think you can sell 20,000 or 25,000 a year at $12,000 apiece," says one veteran dealer. "But with exchange rates, and a platform, engine and transmission that aren't used by any other model, how is it possible for them to make money?" Another dealer says, "It is a great car for city commuting, but it is $4,000 more expensive than similar-sized cars you can buy in Europe that have a back seat. It will be very, very challenging."

Which is one reason why Zetsche is still wrestling with distribution. Mercedes dealers aren't going to want to sell a car that makes no money and dilutes their image of exclusivity, so a new independent network will have to be created.

"We want to work with a third party,'' Zetsche told a European business magazine recently. "We need a model that is very flexible and makes do with little investment."

He sure does. Zetsche has vowed to make Smart profitable by next year and keep it in the black thereafter. Given Smart's history and the cost of a U.S. startup, that will be a tall order

Yes, it's not like we haven't heard about this before. But I think this article has a lot of updated information in it.

-Matt

they are for sale here in az already.......

Yes, they're already for sale.... in a way. They're being imported by ZAP and "Americanized," which increases the cost tremendously... ZAP wants ~$25000 for these things. DaimlerChrysler wants to bring these over and sell them for ~$12000 and try to turn a profit.


-Matt

theyve been in Canada for at least a year now...sold at MB dealerships.

My dad has been trying to import a bunch of brand-new '04's but bureaucracy has prevented him for being able to legally sell them.

Of course, they severly delay my dad while I'm seeing truckloads being shipped through with no problems.

Damn government! :furious:

I've seen them in California. Not for sale, but driving around.

seen 'em in Miami Beach. One was on a used lot.

Did anyone even read the article? :confused:

Did anyone even read the article? :confused:

:raises hand:

I did.

I think Mercedes has to market the Smart as a 'sporty'/fun car that just happens to get great gas mileage. There was that one Smart coupe that was also a psuedo-convertible. I think that one would be the bestest model for hte US.

In all honesty, I think the Smarts would have been perfect to market under the old Plymouth brand name - that would give them automatic name recognition.

I think Zap's distribution agreement runs through 2008. So MB can either buy-back the agreement, or just wait for it to expire.

Hopefully they'll bring the diesel version, it gets much better mileage. The mileage on the gas version Zap sells is mediocre.

"It is a great car for city commuting, but it is $4,000 more expensive than similar-sized cars you can buy in Europe that have a back seat. It will be very, very challenging."

This pretty much covers it. I'd buy a Fit way before a Smart.

Why would you take a small car that's can't compete in the land of appealing small cars and bring it here? If you want to sell tiny city cars here successfully, sell the ones thatare successful. Are you listening Mitsubishi? Bring the new colt here. It's one of the few products you make that is decent. (an Evo can't support a whole manufacturer)

"It is a great car for city commuting, but it is $4,000 more expensive than similar-sized cars you can buy in Europe that have a back seat."

There is a key part of that statement that everyone is missing.... "you can buy in Europe" This isn't Europe, and the selection of GOOD small cars is much more limited. Maybe the Smart isn't a great catch in such a crowded market like Europe, but in the US market there simiply aren't as many competitors. Espesially if there is a redesign coming soon - chances are that the redesign will be more competitive with Europe's best - bring that one here.

^^But we just got (or are getting) a bunch of new small cars: Fit, Yaris, Versa, etc. plus we already have the Scions. I would take any of those cars over a Smart. I saw a bunch of Smarts recenly in Switzerland; they are REALLY tiny. At 12k they might sell, but that leaves no room for profit.

I read that DCX is supposed to announce next week that Smart will be coming to the US market in 2007.

Also I'm convinced I saw one of these zipping around downtown last Friday night here in Chicago. I don't think they're planning to bring it here are they?
Its a B class and looks like a mini R class.
http://mint.jam.tc/mtbook/mt/archives/img/web/mb_bclass_20050323.jpg

It's weird, I saw a Smart just 2 weeks ago here in CT of all places. I was riding my bike at the time and didn't believe that I saw one. :eek:

http://mint.jam.tc/mtbook/mt/archives/img/web/mb_bclass_20050323.jpg
Sweet, a Mini R Class!

The B-Class has been out while here (Canada) so that was probably the sigting someone had in Chicago, add a few options and they are wildly expensive for what you get. In Toronto the SMART cars are very popular, they are everywhere, have been on sale about three years and sales numbers exceed MB's wildest expectations for the Canadian market.

They said on WBZ news radio that MB will announce the smart to arrive in '07. Hopefully it keeps to the smart brand, instead of those made for US FourFour and FourMore. All those would do is add to the small car options, instead of the little two seat smart which would be a one of a kind in the US market.

The B Class is fugly IMO.

Seen one here in Houston.

They said on WBZ news radio that MB will announce the smart to arrive in '07. Hopefully it keeps to the smart brand, instead of those made for US FourFour and FourMore. All those would do is add to the small car options, instead of the little two seat smart which would be a one of a kind in the US market.
I would think the FourMore would be most competative in the US. Small cars are on the upswing, but we're still very much a suburban country and we still need somewhere to put groceries.


-Matt

There is already one here in Portland, OR

I see dozens of them (the 'fortwo' model) up here in Alberta, Canada on my commute daily, including a trio of them parked in the same lot as I do (owned by the city for development permit inspectors). I find it surprising that they're so popular in my area, because I'm quite rural to the city (I have a 40-mile one-way commute) and I wouldn't consider them a good highway car. I ran the build & price option on their Canadian website the other day for a co-worker, and fully loaded, it clocked in at around $23k Cdn, which I guess is around $21.5k US or so right now.

I didn't know until I saw this thread that they're not available in the US yet. Canadians seem to have embraced them, considering how many I actually see on the road. Would the USA share the same success? I dunno.

Smart cars have been spotted here in AZ ...
But the funny thing was... A female blonde was trying to drive it...

Rueters:


Chrysler to sell Smart car in US in 2007: report
Mon Jun 26, 2006 9:47am ET

http://www.auto.bme.hu/sajtotaj/mercedes/smart/puls_cab-1.jpg

DETROIT (Reuters) - DaimlerChrysler AG (DCX.N: Quote, Profile, Research) will announce a plan this week to begin selling its two-seater Smart car in the United States next year, the Detroit News reported on Monday.

The newspaper, which quoted unnamed sources familiar with the situation, said that the automaker would announce the planned move on Tuesday.

A DaimlerChrysler spokesman said that an announcement on marketing plans for the Smart ForTwo in the U.S. market would be made soon, but declined to comment further.

"We've always said that we would have an announcement in June, so it's close. It's imminent," said Han Tjan, a spokesman for DaimlerChrysler in New York.

The move would represent an attempt to broaden the market for subcompact, a money-losing component of DaimlerChrysler's Mercedes-Benz unit since it was launched in 1998.

Mercedes took a first-quarter charge equivalent to $1.5 billion, including costs associated with scrapping the slow-selling four-seat model of the Smart car.

The newspaper said that Chrysler would opt to sell the remaining Smart model through a distributor in the United States, rather than a network of dealers.

The reported launch of the Smart brand in the U.S. market would come at a time of increasing consumer concern over gasoline prices and increased interest in smaller cars with more fuel-efficient engines.

At just over 8-feet long and less than 5-feet wide, the Smart ForTwo is small enough to fit in half of a typical parking space. A version powered by a turbocharged three-cylinder engine gets up to 60 miles to the gallon, according to DaimlerChrysler.


DetNews:


Smart car zips to U.S.

DaimlerChrysler's fuel-efficient minicar to arrive stateside in 2007 to try to boost brand's lackluster sales.

Susan Carney / The Detroit News

DaimlerChrysler AG will begin selling its two-seater Smart car in the United States in 2007, sources familiar with the situation said Sunday.

The automaker is expected to announce the plan Tuesday. Bringing the minicar to the U.S. market could help boost sales for the money-losing Smart brand, which is part of DaimlerChrysler's Mercedes-Benz unit.

The minicar's U.S. debut is being planned as American consumers are turning to more fuel-efficient cars as gas prices continue to hover around $3 a gallon. It would be sold through a distributor, rather than a dedicated network of Smart dealers.

"It doesn't surprise me that they would bring the Smart car to the U.S. given the interest in small cars," and growing sales of smaller-engine models at Toyota Motor Corp. and Honda Motor Co., said Jim Sanfilippo, senior industry analyst for AMCI in Bloomfield Hills.

But Smart would arrive amid a huge influx of subcompact cars to the United States, including the Nissan Versa and the Toyota Yaris, and there may not be demand to support them all, said Rebecca Lindland, an analyst with Waltham, Mass.-based Global Insight Inc.

"Our forecast is for less than 500,000 (subcompact) units," Lindland said. "The (Honda) Accord and (Toyota) Camry each sell about that many. Even with all these new models coming in, we still don't expect a huge migration down to subcompact cars."

The Smart brand has been a problem for DaimlerChrysler, losing more than $4 billion since its 1998 launch. Last year, Mercedes lost $598 million on a $1.3 billion charge to restructure Smart.

Dieter Zetsche, who took over as chairman and CEO of DaimlerChrysler earlier this year, moved quickly to overhaul Smart and reiterated a goal to break even next year. Investors had pushed the company to kill the brand, but Zetsche spared the two-seater.

The Smart Crossblade seemed like it could've been fun
http://www.autoextremist.com/NAIAS2005/smart/SmartCrossblade.jpg

Forget all that, I want a smart roadster!

http://images.myphotoalbum.com/k/kh/kha/kha0/kha0t/kha0tik/albums/album08/21_G.sized.jpg

crossblade looks badass!

Search for 5th Gear episode that goes to a Smart meet and reviews the Crossblade.

I still don't see the two-seater being successful here. The four-seater would have been.

http://www.daimlerchrysler.com/Projects/c2c/channel/images/18064_25421_381_285_smart_forfour_1152x864.jpg
http://www.canadiandriver.com/news/03images/for4.jpg

-Matt

I've already seen 3 Smarts in ATL area. So they're coming in someway, somehow.

we got lots of these things flying round my area...and im amazed to see some even drive and start in our winters up here in chill box town canada...as in perfermence wise its not a STI but you can basically travel from my town all way to west coast of canada in like 60cdn in gas! hahahaha

Smart cars have been spotted in Pittsburgh too. A local dealership even had a "Smart" tent at the PVGP last summer.

Automotive News is reporting that Roger Penske will sell and service SMART cars in U.S. for DaimlerChrysler.

DaimlerChrysler expects to sell 20,000 SMART fortwo models annually in the United States, with an emphasis on urban markets on the West and East coasts. SMART's U.S. sales target is about half that of BMW's Mini brand.

Bob

Penske will sell Smarts in U.S. for DaimlerChrysler

DETROIT -- DaimlerChrysler AG will bring the two-seat Smart fortwo minicar to the United States in the first quarter of 2008 and will use entrepreneur Roger Penske to sell and service the vehicles.

Penske is CEO of retail chain UnitedAuto Group Inc., which operates 173 new-car franchises. UnitedAuto ranks No. 2 on the Automotive News list of the top 100 dealership groups in the United States. The company sold 178,157 new vehicles in 2005.

Smart already is sold in 36 countries. Italy is the brand's biggest market, with annual sales of 40,000 units.

DaimlerChrysler expects to sell 20,000 Smart fortwo models annually in the United States, with an emphasis on urban markets on the West and East coasts. Smart's U.S. sales target is about half that of BMW's Mini brand.

The automaker originally planned to launch the Smart brand in the United States with a new, four-seat SUV. But the plan collapsed as mounting Smart losses forced DaimlerChrysler to cut costs.

hmmm..beat to the punch.

I saw two car carriers full of 'em here in LA.

those don't seem safe with hummers running around on the roads...

cool......but where is R1/R2?

I've seen a few around not many but a few

I saw a black one in Baltimore city a few weeks ago off of Boston St. I had to do a double take because at first I thought it was a really big RC car. :)

those don't seem safe with hummers running around on the roads...
Neither are motorcycles, but doesn't seem to be slowing the sale of new Harley's very much.

Besides, I'd rather be in a nimble car and a good driver over being a numbskull in a tank.

those don't seem safe with hummers running around on the roads...
what would hummers do to them...?
run them over...? :lol:
i've seen someone posted a video clip, i believe it's from top gear...
they ran a smart going at ~50 mph into concrete jersey divider...
the result... only body panels fell off...

oh here... found them...

http://video.google.com/videoplay?docid=4104261162559881379&q=smart
from google of course...
http://video.google.com/videosearch?q=smart

I've already seen 3 Smarts in ATL area. So they're coming in someway, somehow.

You currently can get them through "Zap"

http://www.zapworld.com/cars/smartcar.asp

what would hummers do to them...?
run them over...? :lol:
i've seen someone posted a video clip, i believe it's from top gear...
they ran a smart going at ~50 mph into concrete jersey divider...
the result... only body panels fell off...
that didn't look like "only body panels falling off" but it was definately impressive.

Anyone know how much they will sell for here in the US?

Seems like they'll be charging too much for too little. Why would someone buy the smart for more money than a Fit or Yaris?

Front impact is pretty impressive for that car... I wonder how it handles side impact :devil:

http://blogs.edmunds.com/Straightline/1183

Looks like ZAP! just got zapped...

edit: Whoops... I see this is already "old" news. Sorry...

Well, maybe this is new: smartUSA web site is already up.

http://www.smartusa.com/

Bob

Well, maybe this is new: smartUSA web site is already up.

http://www.smartusa.com/

Bob

Who would've thought... out of all the bridges in the world, they chose the Brooklyn Bridge because of it's narrow lanes.... :D

Bring me R1!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!

Yesterday DC announced that the two seater Smart will be available in the USA from first quarter 2008. It will be distributed by the United Auto Group. Comparable with DC's strategy in Europe they focus to sell the car in the big cities (as in Rome, Berlin, Paris).

Last year Smart sold 4000 units in Canada.

dunno how successful smart will be in the USA i know in asia and europe smart is probably the way to go with heavy traffic and no parking spots, but in the US ppl here always say size does matter~~~~~LOL so a real compact car not sure if ppl like em small

dunno how successful smart will be in the USA i know in asia and europe smart is probably the way to go with heavy traffic and no parking spots, but in the US ppl here always say size does matter~~~~~LOL so a real compact car not sure if ppl like em small
Periods and capital letters go a long way.

-Matt

The Smart has not been succesfull since its release in 1999. It has costed DaimlerChrysler several billions already! It forced them to stop production of the Smart Roadster and ForFour already.
I can't imagine that the USA release will reverse the results.

Why not? We're a huge country, twice the size of europe, with lots of urban areas.

Canada took well to it.

-Matt

I just wish it weren't so dern 'spensive!

So which Smart models are coming to the U.S.?

So which Smart models are coming to the U.S.?
Only the ForTwo.

Why not? We're a huge country, twice the size of europe, with lots of urban areas.

Canada took well to it.

-Matt
USA is the size of Europe, but more interested in "big is beautiful" than a tiny car in which you can't even take some shopping bags with you. In Europe you only see them in a few big cities.

Sorry Matt, but 4000 Smarts sold in Canada is not really a big amount. What's that in market share?

They are pretty cool but I don't think they will catch on outside of big cities. Americans like their big V8 gas guzzlers.

USA is the size of Europe, but more interested in "big is beautiful" than a tiny car in which you can't even take some shopping bags with you. In Europe you only see them in a few big cities.

Sorry Matt, but 4000 Smarts sold in Canada is not really a big amount. What's that in market share?

While yes, the USA is about the same size of Europe, on average Europe tends to be packed in more evenly since there are so many more countries there, but here in the US we tend to have bigger extremees - like small areas are packed in REALLY tightly (NYC), and then there are huge areas of nothingness (basically the entire central part of the country). It's LOTS easier to live without a car in Europe than here in the US.

Sorry Matt, but 4000 Smarts sold in Canada is not really a big amount. What's that in market share?

It's not that big of an amount in market share, but when you consider that MB thought they'd be selling about 1000 of them in the first year and reached 4000, that quite a successful launch. They had to take some production allocation from other european countries where the car isnt selling as well as they predicted.

Sure it won't hold, but they will certainly sell another 2000 this year easily

Is not very "Smart" to come to the US

Is not very "Smart" to come to the US

That is horribly not funny. ;)

That is horribly not funny. ;)


You are welcome! ;)

there is the old model one of these i believe a two door. The guy also has a peugot. he lives right down in clear lake...... (worked next door to his house) that thing was so funny watching. The guy was punching it at every stop sign and it moved fairly swiftly. It was a diesle verion though.

BlitZ

I, for one, am glad to see this car being officially brought stateside. Perhaps, with a few tweaks to the law, we could see the Japanese minicars come here as well. I want my 600cc turbo subaru daily driver.

I, for one, am glad to see this car being officially brought stateside. Perhaps, with a few tweaks to the law, we could see the Japanese minicars come here as well. I want my 600cc turbo subaru daily driver.

Honda Today FTW! (anime fans might get the reference)

As for tuned Smart cars, someone sent me this vid of a Smart fortwo with a motor from a GSX-R stuffed in it.

http://www.youtube.com/watch?v=wIkwdv1kvmo

I saw one on the road a month ago or so.