California Autos Examiner

Sunday, June 11, 2006

More smart Coverage




Fortune has pieced together statements by Dieter Zetsche and interviews with industry folks for a slightly different impression on the smart fortwo coming to the USA. Fortune's take? Consider it all but done. However, Fortune doesn't think that bringing the smart here is necessarily a "smart" move. Why? Limited appeal of a two seater with little room for anything else and no sporting capabilities to make up for it. According to Fortune many industry insiders are also skeptical. "I think you can sell 20,000 or 25,000 a year at $12,000 apiece," says one 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 said, "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."

Yet, in my mind how can they not bring the car here? Mercedes could never truly say "We gave it out best" without taking a swing at the US market. Canada has proven to be a bright spot and the US could support the sales of far more units. If the fortwo proves to be a success, Mercedes could rebadge the B-Class as a smart to increase showroom traffic and not sully the premium status the Mercedes enjoys here in the USA.

Full article here.

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