Smart Exceeds Sales Expectations

[Paul Jungnitsch 0]

Smart Exceeds Sales Expectations

Date posted: 03-24-2008

NEW YORK — Smart car importer Penske Automotive Group has found that the little city car is big outside the expected target markets of Los Angeles and New York, with dealers in middle America desperate for more of the cars, according to CEO Roger Penske.

The Smart Fortwo is also selling more heavily laden with options than was expected, he added. The average Fortwo is equipped with $1,600 in options, or about 15 percent of the car's base price, and the fully loaded version accounts for 10 percent of the cars sold, rather than the 4 percent the company predicted, he said.

"This is not a customer who is buying a car because it is cheap," Penske said. "People are interested in its urban friendliness and its fuel economy," he said. "It is the total of what we offer."

This might lead one to expect the car to be popular in L.A. and New York, and it is. "Los Angeles alone would be our number-one state in sales," Penske said.

But its appeal hasn't been limited to Hollywood stars and SoHo hipsters. "In Pittsburgh and places like that, the dealers are dying for the cars," he said.

All of the interest was generated by Smart's 50-city Road Show last year, which showed off the car in places like sporting events and retail outlets, said Penske.

The tour was so effective that the company's first two years' allotment is spoken for, reports Smart USA President David Schembri. Because of that, Smart will not engage in conventional advertising through the usual outlets, but will continue to engage in non-traditional brand-building activities, he said.

What this means to you: It's gonna be hard to get a Smart, even if you live someplace where you thought demand would be slower. — Dan Carney, Contributor

http://www.edmunds.com/insideline/do/News/articleId=125314

Just like in Canada, the smart is selling big outside major centers.

Success would be encouraging for Toyota and others to bring in the iQ and other mini cars.

[MikeT 744]

Great news!

[Schmimbo 0]

Great article. Glad to see this going better than what they planned! Its nice to be apart of this in some small way.

[midget ninja 0]

I'm so glad to hear that. And I just hope it keeps going well.

[Commander Cody 1]

I've been "tapping" through my gears here on the Blue Ridge Parkway and I've got to tell you - it's the perfect place to do it. Speed limit is 45 and few cars on it so not much pressure!

[Nextourer 1]

sweet! Although, I never knew Los Angeles was a state!

[ValgardForkbeard 2]

Maybe a "state of mind"? Doesn't Los Angeles county have just about as many people in it as Canada does?MG

[ianjay 6]

It is obviously not the car for everyone, but I never doubted that the car would be a hit with gasoline prices so high. Premium is $3.70+ and diesel is just below $4.There is probably a market for a fuel efficient, ultra-safe, four seater...Ian

[deezle 0]

There is probably a market for a fuel efficient, ultra-safe, four seater...Ian

I am hoping this will trigger a huge mindshift for automakers who already sell in the U.S., and for those who have been reluctant to enter the market with small fuel-efficient cars (eg: Fiat 500!).It also underlines the reality that consumers want small fuel-efficient cars that aren't just bare-bone 'entry-level' trash. Those associated with the not-so-big-three automakers have often used the term 'entry-level'---implying that consumers would actually prefer to buy a gas-guzzling behemoth if only they could afford the purchase price. Their fuel-efficient offerings have therefore been pathetic under-engineered boxes lacking any creature comforts.

[MikeT 744]

For once I wish they would sell stripper big cars here too. You can get an S-Class in Europe with cloth seats, small (for the car) diesel engine and so forth. It's only on this stupid continent that they only try to sell the high graded "pad the 50% profit margin some more" versions.

[Speedie 4]

Bah - Naw - they will never sell in the States - just read the reviews from last year! I know there were a few times when I was down there that if I had of said yes to selling a few folks would have gone to the bank to get the money. Cheers,Cameron