DaimlerChrysler and the Smart Fortwo? A mistake in the making according to me.

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S2007S

I can tell you a year before this car even makes it to the United States that it will not work for them. The prices alone are out of line, starting at 11k and going as high as 15k. "DaimlerChrysler doesn't want to repeat past mistakes." They will be repeating past mistakes in 2008 when they put this car on the market.


http://autos.yahoo.com/articles/aut...s/41/smart-fortwo-set-to-come-across-the-pond



When the Smart Fortwo arrives in the U.S. in early 2008, parent company DaimlerChrysler doesn't want to repeat past mistakes. The first Smart hit the European market in 1998, but the brand has never been profitable. With the new Fortwo, Smart is starting anew with a car tailor-made for the United States. Standard safety features include four airbags, ABS and stability control. The U.S. Fortwo will have increased cabin and trunk space and a new 1.0-liter 3-cylinder engine making 84 bhp, mated to a refined semi-automatic transmission. Company executives claim the car will get about 40 mpg.


Three models will be available: The Pure with optional air conditioning starts at $11,000; the better-equipped Passion will cost $13,000 and the Convertible will be $15,000. A Brabus version with more power will be presented at the Geneva show in March. Roger Penske's UnitedAuto Group will be the exclusive distributor in the U.S., and they will be taking orders in about two months on their Web site, www.smartusa.com.
 
Any idea about how many they need to move for break-even?

If they sell as many in the US as they do per capita here in downtown Toronto, they should be fine, but I understand that downtown T.O. isn't representative of the US market as a whole.

There are of course other bigger cars in the sub-compact range that will give excellent gas mileage without the drawbacks of the tiny Smart.
 
The wild card is gas prices. If it goes over 3.50 people will get sick of the high prices and will change there habits/vehicles. I like big suvs' to but it's not much of a stretch to think about how painful it would be to fill up if gas was $5. a gallon.
Most of the automakers will have at least one mini in there lineup within the next few years is my guess. So no I dont think it is a mistake because they have to start somewhere and have some exposure just in case.
 
Quote from traderNik:

Any idea about how many they need to move for break-even?

If they sell as many in the US as they do per capita here in downtown Toronto, they should be fine, but I understand that downtown T.O. isn't representative of the US market as a whole.

There are of course other bigger cars in the sub-compact range that will give excellent gas mileage without the drawbacks of the tiny Smart.
More...

Hey Nick.

I love Toronto. Beautiful city.

I went there with my wife for the film festival. We had a great time. Those Smart cars were all over the place.
 
Quote from traderNik:

Any idea about how many they need to move for break-even?

If they sell as many in the US as they do per capita here in downtown Toronto, they should be fine, but I understand that downtown T.O. isn't representative of the US market as a whole.

There are of course other bigger cars in the sub-compact range that will give excellent gas mileage without the drawbacks of the tiny Smart.
More...

how can any city in Canada be representative of the US?
 
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