Printer FriendlyU.S. gets smart
On June 28, 2006, smart gmbh announced that it will enter the US market in the fall of 2007 with the next generation fortwo. Fresh off the announcement in Detroit, Ulrich Walker, President and CEO of smart worldwide, was in Toronto to meet with Marcus Breitschwerdt, President and CEO of Mercedes-Benz Canada. Breitschwerdt was responsible for the entry of smart into Canada.
A few smart owners were invited to meet Walker. For almost two hours, we discussed our smart experiences and asked questions about the direction smart will take with the entry into the US market. Canada was the test entry into North America and Breitschwerdt was the proud father, showing off the favorite son. He even picked up Ulrich at his hotel in Toronto in a smart Grandstyle.
The slick website for the smart USA is already up – http://www.smartusa.com/ – but the question remains, how will the firm promote smart in the US, where the public has been sold the concept that bigger is better (safer), and has been conditioned to judge cars by the pound? Walker explained that the marketing will focus on three areas: environment, quality and safety.
Smart will enter the US with a new gas engine. Canada has been pushing to continue with the diesel engine here, but in order to do so, a diesel will have to be built that can meet the 2007 pollution standard. I find it ironic that a gas engine that gets 21 litres per 100 km can pass, while a micro-diesel engine that gets 4.3L/100k (almost five-fold better mileage) can’t.
Smart owners have a love/hate affair with the AMT (Automated Manual Transmission) on the current fortwo. Smart looked at including a CVT, but there were none available that would fit the small engine bay. The 2008 will feature a new, faster-shifting AMT. At automotive exhibitions, smart has been showing a wide variety of drive trains including natural gas, electric, and both gas and diesel mild hybrids. The 2008 is a bit longer in size to comply to the new US pedestrian safety standard. One aspect of the new fortwo that smart owners liked hearing is that the convertible top will fully open under power. On the current model, the top opens under power, but lowering the top to the “second position” is a manual step.
I expressed the concern that modifications made for the US might result in a loss of the unique character that the current fortwo has. I saw a forfour at the Toronto auto show, and although it has the styling cues of the fortwo, I feel it lacks emotional appeal. My reaction was not unique, as production on the forfour ended last month. Breitschwerdt made the comment: “smart is fortwo and fortwo is smart.”
Distribution will be handled by Roger Penske and UnitedAuto, which has a long-standing relationship with Mercedes. There was a feeling of respect and admiration when Penske was discussed, and the fact that he is personally overseeing the smart entry is reassuring to Mercedes.
Introducing a new automobile brand to North America is a difficult and complex business. Sales, service, distribution and establishing a franchise branding are only a few of the factors. Add to that the uniqueness of the smart and the US “love” of large cars, and you have an interesting challenge. I, for one, am looking forward to following the development of smart in the US, as well as how it may affect the Canadian smart.
July 16, 2006 – Toronto Sun Autonet Drive
Link to Autonet article
Link to UnitedAuto
