SMART expected to break even in '07
DaimlerChrysler's
quirkly little MINI-fighting brand might break even for the first time in its existence, according to the company. Less
has been more, evidently, with all of the nipping and tucking going on in the company's ranks and product lineup in an
effort to narrow down the losses.
Big news for the brand lately has been whether it's going to make an appearance on the auction block -- DCX hired Goldman Sachs to help it court potential suitors, but cancelled the ask (according to Handelsblatt, anyway) unexpectedly. Sounds like SMART will stick around for the time being.
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Reader Comments (Page 1 of 2)
Gunnar Heinrich 6:55PM (3/21/2006)
MINI fighting? The SMART and the MINI are very different cars despite vying for being smallest. The MINI is technically superior in just about every way and can be argued as something of performance car.
The SMART is a city-mobile, cut n' dry, two person A-B transport cleverly packaged and compact.
They're both fun to drive, but entirely different experiences.
http://www.automobilesdeluxe.blogspot.com
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whofan 8:26PM (3/21/2006)
This car is the answer to California`s problems.
Congestion, smog, why would it not sell?
Should be a hit.
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Kurt Binnie 8:39PM (3/21/2006)
Too bad they are so overpriced in Canada compared to Europe. In France you can get a FourTwo for 8500 Euros.
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Brother Justin 8:48PM (3/21/2006)
It just amazes me that they don't have it in the States yet.
This flipping thing WILL sell crazy here!!!
Do you know how many Liberal baby boomers would buy this. Just to show their wallets.
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Glenn Laycock 9:15PM (3/21/2006)
Yes ... very overpriced in Canada. I suspect greedy Mercedes Dealers expected margins as the cause.
You can't say which is better, the Mini or Smart -- totally different angles to the same nitch. I really would like to see the Smart type of vehicle catch on as it is good for everyone.
I am amazed they broke even; that is very good news.
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bernie 10:28PM (3/21/2006)
It's too bad we're not discussing what dealers will charge for sensible vehicles like these instead of POS aircraft carriers like Escalades.
The only reason Smart sales likely won't take off like a rocket is people live in fear of getting mowed down at high speed by jackasses in Escalades talking on their cell phone.
Detroit rednecks - let me have it! LOL
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rwcmick 11:37PM (3/21/2006)
I'm fairly confident that the next generation fortwo will be offered in the USA. It might be a limited distribution deal where only select areas get the car and it might not be MB dealers that get the car (Penske's Auto Group was rumored to be in running to sell the cars).
http://www.autoweek.com/apps/pbcs.dll/article?AID=/20051205/FREE/51204027&SearchID=73233046758164
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http://www.allcarsallthetime.com
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RossL 6:25AM (3/22/2006)
I see these on the highway (there are quite a few around here) and I think, "That can't possibly be safe - how much protection would that guy have in an accident?"
Then I remember that, in warmer months, I ride a motorcycle down that same highway. Kind of puts things in perspective. (If only those warmer months would hurry the heck up and get here.)
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Juergen 6:56AM (3/22/2006)
RossL: The smart is pretty safe, especially when crashig into "soft" targets, due to the Tridion cell which is very stiff. Not good when crashing into other stiff targets though.
Another thing I want to add is that Mini and smart are not in the same league. Mini is 3.635m long while the smart is 2.5m short. Trying to find parking space, this really makes a difference.
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Dan 7:57AM (3/22/2006)
My curiousity has been piqued for this auto for what seems like decades when it was only rumored about by the automotive press when Swatches were all the rage.
There's a definite need for this vehicle, look to the Prius's unavailability for an indication that America is beckoning for reliable, thrifty COMMUTER transportation.
Keep your land yacht, just don't drive it to work, please. If everyone utilized a valid, efficient commuter car for commuting purposes M-F 8-5, then the accident issues [SUV vs. micro car] become almost a non-issue.
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Dan 8:07AM (3/22/2006)
[this is kinda soap-boxy - sorry]...before you flame me re: your "rights" [however stubborn] to drive whatever you darn well please, I have a 2003 VW Eurovan [17mpg], a land yacht in and of itself, but I use it for its intended purpose and otherwise it stays in my garage the greatest majority of the time, and my trusty little old 1983 VW GTI [33mpg] sees to almost all commuting chores and running errands. The Smart cars REALLY make sense for those chores, for folks that don't have inferiority complexes or self-esteem issues and need to be seen commuting in rolling Rolexes. OK, you can flame me for that one :P MB - I emplore you...we NEED the Smart cars! :)
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Tony 9:42AM (3/22/2006)
"3. Too bad they are so overpriced in Canada compared to Europe. In France you can get a FourTwo for 8500 Euros."
They also have more competition in Europe in that niche. What cars in Canada compare with it? 8500 euros is around $12K cdn. You can get a Smart here on the prairies starting around $16K. Personally I'd complain more about the price disparity between what we pay and what they pay in the US for the same cars.
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Steve C. 10:49AM (3/22/2006)
Guys, these are the quintessential urban cars. And by urban, I don't mean Los Angeles or Houston or anyplace else where you get around by using limited access freeways.
By urban I mean New York/Chicago/Boston-type places where size really matters and you don't have the daily risk of some numbnuts driving you off the freeway at 70 mph.
These things should sell well as urban vehicles, and they will probably be the "flavor of the month" for some teenagers whose parents buy them whatever they want (e.g., you'll see them parked at Beverly Hills High).
But don't expect sales in Dubuque to be all that brisk.
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TJ 11:31AM (3/22/2006)
In 2007 when the next gen smart arrives, it will definately hit the US. At least thats what smart officials are saying.
I don't think they'll be a huge success though...a lot of people say how much they like it (and I'm one of them), but I hardly see any of them (or myself) purchasing one.
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jeff 7:25AM (4/05/2006)
they are here and for sale now, but at a enormously inflated price of 23-30,000+. and contrary to whats advertised, they cannot be registered in many states, illinois being one of them. i have contacted the state dept. of motor vehicles and state legal dept., which both say it does not have the legislation to register or license the smart car.
and the fact we here in the us can't buy one cheaper in canada and bring it across is annoying too. these guys here at zap world and elsewhere are marking them up to high, comparing to europe. turning people off to the vehicle. too bad.
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slapnuts 12:11PM (4/05/2006)
bob lutz is hung like a sperm whale ya its that big
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slapnuts 12:21PM (4/05/2006)
smartsn r the best iwant one like iwant bob lutz
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evguy 9:08PM (4/09/2006)
for those that don't think smart is offered in the usa , they should know that ZAP www.zapworld.com is now delivering them to select dealers in the usa. Furthermore they are sponosoring a ride across the USA to highlight this fact and to show them off in the NY auto show
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John P. Hedin 12:30AM (4/13/2006)
The mileage that the Zap cross country "punishment tour" claims is about 40 MPG as compared to Zap's initial claim that the gas car got 60 MPG. How anyone can want to pay from $25,000 to $29,000 for a 2 seat 40 mpg car baffles me. This smart car frenzy in the US seems to run counter to world wide sentiment. Canadian sales of the CDI smart forTwo (60 MPG city-75 MPG hwy) for March 2006 dropped 35.8% (251 cars) as compared to March 2005 (391 cars). A 2 seat city car that will cost $16,500 in Canada or more than $25,000 in the US is an answer to a question too few people are asking.
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John P. Hedin aka DrSmart 2:39AM (4/15/2006)
Mercedes has written off 2.2 BILLION dollars to down size the smart experiment to "break even" in 2007. Imagine the R&D and product improvement that they could have achieved by putting that 2.2 Billion into the Mercedes brand. Additionally they plan to close most of the stand alone and innovative smart dealerships that feature the signature smart tower. smart forTwo's in the future will be sold at Mercedes dealerships-I just don't think that Mercedes dealers will want to take care of smart customers while still dealing with the ongoing Mercedes quality issues. It took 2 years for Mini sales to take off-with smart on life support-I don't think Mercedes has the time and I don't think the 2007 G2 car is the answer.
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