DaimlerChrysler Smart car landing in the U.S. in 2008
By Jim Mateja
Tribune auto reporter
Published June 29, 2006
High gas prices and urban congestion are what finally pushed DaimlerChrysler AG to import its tiny Smart car to the U.S. It will arrive in the first quarter of 2008.
"With gas hovering around $3 a gallon and finding a parking place like finding the Holy Grail, the time is right for Smart," DaimlerChrysler Chairman Dieter Zetsche said Wednesday in announcing plans to bring the two-seat, 40-mile-per-gallon micro-car to the U.S.
The Smart Fortwo, which Zetsche said is expected to list for less than $15,000, is barely 9 feet long, or about 40 inches shorter than BMW's Mini Cooper.
In a telephone press conference, Zetsche joked that "two fit in a parking space that's now meant for one."
Still, Zetsche refrains from calling it small. "It isn't a small vehicle. It's a lifestyle, special purpose car, an addition to the vehicles people already have."
In a novel arrangement, the cars will be distributed by United Auto Group, which is owned by racing legend Roger Penske. It has 296 dealers in 19 states, Europe, Mexico and Puerto Rico that sell 40 brands of vehicles.
The current Fortwo is powered by a 3-cylinder engine capable of 40 m.p.g. in the city and 60 m.p.g. on the highway. With a 10-gallon tank, the car gets at least 400 miles before refueling.
The version to be imported is the next-generation Fortwo. It will have a new engine created by Mitsubishi. Zetsche wouldn't say whether it would be a 3- or 4-cylinder.
Zetsche also wouldn't say how many will be imported, though about 20,000 annually is a good guess.
"If gas prices go higher than $3, sales could reach 60,000 or 70,000 units, but regardless of gas prices, they should have no trouble selling 30,000," said Art Spinella, general manager of CNW Marketing Research.
"Only 20 percent of people who express interest in a Smart do so for the fuel economy. The other 80 percent say they'd like to buy one because it's cool, it's neat, and with its different look, size and design has cachet."
Penske said he initially will name 30 to 50 dealers to sell the car, mostly in large cities and vacation retreats.
Three models will be offered: a coupe, a convertible and a still-to-be-named derivative.
The Fortwo will be loaded with safety hardware, including air bags, anti-lock brakes and electronic stability control.
And it will hold luggage or groceries, just not much of either.
Dave Schembri, who in February resigned as executive vice president of sales and marketing for Mitsubishi, will head Penske's distribution operations.
"Third-party distribution is a good idea," Spinella said. "It avoids the traditional dealer franchise agreement, so that if the car doesn't do well, DaimlerChrysler just ends its relations with Penske and doesn't have to settle with hundreds of dealers."
Zetsche said Smart could offer a hybrid version as well as a diesel for the U.S. A diesel is available in Canada, where some Fortwos have been sold in the last year, but it doesn't meet coming U.S. emissions mandates.
Smart was introduced in 1998 in Europe, and more than 750,000 units have been sold in 36 countries since then.
It was recently featured in the film "The Da Vinci Code" and in the remake of "The Pink Panther."
But Smart has lost $3.6 billion, according to analysts. Efforts to expand to too many models too soon backfired and forced the automaker to drop Forfour and roadster models.
Zetsche vowed "that mistake won't happen again."
By Jim Mateja
Tribune auto reporter
Published June 29, 2006
High gas prices and urban congestion are what finally pushed DaimlerChrysler AG to import its tiny Smart car to the U.S. It will arrive in the first quarter of 2008.
"With gas hovering around $3 a gallon and finding a parking place like finding the Holy Grail, the time is right for Smart," DaimlerChrysler Chairman Dieter Zetsche said Wednesday in announcing plans to bring the two-seat, 40-mile-per-gallon micro-car to the U.S.
The Smart Fortwo, which Zetsche said is expected to list for less than $15,000, is barely 9 feet long, or about 40 inches shorter than BMW's Mini Cooper.
In a telephone press conference, Zetsche joked that "two fit in a parking space that's now meant for one."
Still, Zetsche refrains from calling it small. "It isn't a small vehicle. It's a lifestyle, special purpose car, an addition to the vehicles people already have."
In a novel arrangement, the cars will be distributed by United Auto Group, which is owned by racing legend Roger Penske. It has 296 dealers in 19 states, Europe, Mexico and Puerto Rico that sell 40 brands of vehicles.
The current Fortwo is powered by a 3-cylinder engine capable of 40 m.p.g. in the city and 60 m.p.g. on the highway. With a 10-gallon tank, the car gets at least 400 miles before refueling.
The version to be imported is the next-generation Fortwo. It will have a new engine created by Mitsubishi. Zetsche wouldn't say whether it would be a 3- or 4-cylinder.
Zetsche also wouldn't say how many will be imported, though about 20,000 annually is a good guess.
"If gas prices go higher than $3, sales could reach 60,000 or 70,000 units, but regardless of gas prices, they should have no trouble selling 30,000," said Art Spinella, general manager of CNW Marketing Research.
"Only 20 percent of people who express interest in a Smart do so for the fuel economy. The other 80 percent say they'd like to buy one because it's cool, it's neat, and with its different look, size and design has cachet."
Penske said he initially will name 30 to 50 dealers to sell the car, mostly in large cities and vacation retreats.
Three models will be offered: a coupe, a convertible and a still-to-be-named derivative.
The Fortwo will be loaded with safety hardware, including air bags, anti-lock brakes and electronic stability control.
And it will hold luggage or groceries, just not much of either.
Dave Schembri, who in February resigned as executive vice president of sales and marketing for Mitsubishi, will head Penske's distribution operations.
"Third-party distribution is a good idea," Spinella said. "It avoids the traditional dealer franchise agreement, so that if the car doesn't do well, DaimlerChrysler just ends its relations with Penske and doesn't have to settle with hundreds of dealers."
Zetsche said Smart could offer a hybrid version as well as a diesel for the U.S. A diesel is available in Canada, where some Fortwos have been sold in the last year, but it doesn't meet coming U.S. emissions mandates.
Smart was introduced in 1998 in Europe, and more than 750,000 units have been sold in 36 countries since then.
It was recently featured in the film "The Da Vinci Code" and in the remake of "The Pink Panther."
But Smart has lost $3.6 billion, according to analysts. Efforts to expand to too many models too soon backfired and forced the automaker to drop Forfour and roadster models.
Zetsche vowed "that mistake won't happen again."
