Mercedes-Benz USA, recently taken over control of Smart USA from original importer Penske, with the full backing of Daimler, is planning to reinvent itself in America and return to profitability. But while there’s a plan in place, it’s a long road ahead.
The smart had the first level it needed to be a success in the U.S. With a high profile and intense media publicity that was generated without spending a dime. It had captured the public’s imagination before selling a single car.
No one ever bothered to tell the story. An imperative component for a successful future for the smart is a good story, one American’s can relate to or find interesting, and will remember.
Unfortunately, after its arrival the smart was neglected by the distributor and its huge fan-base disappeared.
A smarter perception makes a better realty and the newest message from Mercedes Benz USA may not be effective or help with the smart‘s future success in the states. They need to realize the features of the smart car that actually reverberates with the American car buying consumer.
This is one of the most environmentally friendly vehicles available in the market today. Though these traits seem to answer the world’s biggest environmental problem yet, what makes smart the ultimate expression of efficiency is embedded in its stellar design.
First thing that should be done to secure the smart future is to offer the complete line of engine options. From the turbo-charged engine, the hybrid drive model and the diesel version. Make the cost of the electric smart fortwo be more in line with the Leaf or Volt.
Make the smart even more unique and sought-after by offering all the smart special editions models.
There are several features that can set the smart apart from the crowd besides its decent gas mileage and innovative appearance.
- Sell the advertising advantages of driving the smart as a billboard on wheels.
- A full court press on fleet sales through green conscious companies
- Play up the ability to customize and modify the smart’s performance
- Allowing for smarter modifications, may improve its attraction.
If you’ve been following sales numbers over the past few years as we have, you’d be forgiven for thinking Smart’s time in the U.S. is running short. The company is believed to have sold fewer than 4000 cars so far this year, though specific data is hard to find. Daimler, parent company of Smart and Mercedes-Benz, hasn’t bothered to include year-to-date totals in its monthly sales reports, nor any data on 2010 performance relative to 2011. Why? Because Smart’s sales continue to spiral downward by double digits every month. You’d think that would mean the end is nigh, but Smart’s refusing to go down in the U.S. market without a drawn-out fight.
The plan starts with marketing. Which is why you’ll start seeing a lot more Smart advertising in the near future, beginning with a major ad campaign that started in mid-September. TV commercials will appear on all the major networks during a number of popular scripted, reality, and talk shows.
Another aspect of the plan comes on the dealer side of things. Mercedes cut loose 30 percent of Smart’s dealer network when it took over the brand, dropping all dealers that weren’t also Mercedes dealers. As of now, Smart is down to just 50 U.S. dealers, though that number will go back up to anywhere between 80 and 100 dealers in the near future, and all of them will also be Mercedes dealers. The idea is similar to Hyundai’s plan for Genesis to have a dealer-within-a-dealer selling Smart cars as their own brand, not as tiny Benz. They won’t just be sold, either. Now that Mercedes is calling the shots, Smart will begin leasing gasoline cars for the first time. Meanwhile, the company is looking for ways to bring down the lease price on the Smart ED electric car from the current $600 per month rate.
Mercedes is hoping that this plan will get Smart back to sales growth in 2012, though given 2011′s low sales, it’s not a lofty goal. Next year will also see the launch of the third-generation Fortwo as a 2013 model based on the Forvision concept that just debuted in Frankfurt. The update as we understand it will be mostly cosmetic, but third-generation electric models will feature increased range and performance and, if all goes to plan, will actually be for sale and not just for lease. Dealers will have to make do with that for another three years or so until an all-new car debuts. That product, we hope, will feature some big updates, as we’ve found the current car lacking in a few areas, though Mercedes insists that the opinions of automotive journalists don’t reflect those of customers, who apparently aren’t complaining at all about the transmission.
Mercedes-Benz is working closely with its Smart dealers to craft a new awareness for the brand, one it hopes will get sales back on track. How well it works will depend on how effective the message is as much as gas prices and the country’s economic woes.
Beyond the short-term, though, Smart’s future in America is still unclear and will depend heavily on future product we haven’t seen yet.





