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The Smart Car Cometh -- but are Americans ready?

After several false starts, the Smart Car looks to finally (officially) be landing on American shores in 2008 (a company called "Zap" has been importing Smarts and selling them in the U.S. for a couple years). For $99 you can reserve your own teensy-tiny city car that is supposed to get 40-plus mpg and cost between $12,000 and $17,000.

When it comes to U.S. buyers' interest in these vehicles, and the level of Smart's success in this country, I'm hearing everything from "it's going to bomb" to "da bomb" from various friends and co-workers. Penske's United Auto Group, the  distributor of Smart's efforts here, is taking the cars on a road show in coming months to promote awareness of -- and interest in -- the little runabout. Here's my take:

The Smart will be very hot initally because of the "new" and "cool" factor, and it will have some sustained interest because of the low cost and high mileage if offers. But after the "gotta be cool" folks are tired of it, and after the "gotta save gas -- and the planet!" people have one, sales will fall off precipitously.

Of course the real qeustion is: How many of those people are there? In my opinion, not nearly as many as there are people who will find the car's size impractical at the very least and downright scary at the most (this thing makes a Mini look big). In other words, a percentage of people who are already buying small economy cars will consider it, but that entire market isn't particularly huge. Thus, a percentage of it buying the Smart (again, asuming they aren't put off by the limited people/cargo capacity and scary crash possibilities) won't add up to much.

I still think it's a cool idea. But I don't see it heralding a cultural shift in what Americans drive. You'll still see plenty of Escalades and Hummers on the road, even after the Smart hits showrooms. And if you're seeing those behomoths from the wheel of a Smart...

Well, god bless you.

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31 Comments
31 Comments

By mnorm1

on May 17, 2007
06:48 AM

Too much money for a too small car.
I think the Smart car isn't.
 
What about the liability for Penske, when a Focus crushes a Smart.

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By carlisimo

on May 17, 2007
07:42 AM

My coworker put a deposit on one. And we're a construction company. But she's from New York, that may be an influence (and her commute is through urban areas, though on a highway). It'll be her primary car, but she and her husband have a Murano (which neither drive to work) that they can fall back on.
 
It'll work for enough people.

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By mnorm1

on May 17, 2007
08:21 AM

The problem for the Smart is:
Edmunds lists 9 coupes under $15k. The highway mileage ranges from 30 -40.
Edmunds lists 19 sedans under $15k. The highway mileage ranges from 29 -39.
 
I don't have first hand knowledge of all the under $15k cars Edmunds lists, but the ones I am familiar with are significantly larger, most will seat 4, and have reasonable trunk space.
 
I just don't see the Smart as anything more than a niche vehicle; a tiny niche at that. It is a novelty item.

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By boxermike

on May 17, 2007
08:35 AM

I've never understood why americans (I am one) have always wanted the biggest car they can afford regardless of their actual needs.
 
I live in a city. I never, EVER, have more than one passenger. I navigate city traffic almost daily on a bike, the Smart car will feel like an Abrams in comparison.
 
I don't buy cars out of fear, why would I need anything bigger than this right now?

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By SubyTrojan

on May 17, 2007
09:11 AM

All I will say is "The Captain," Roger Penske, is not a dummy when it comes to business off and on the race track! :o) I would think he knows *exactly* what he is getting himself into.

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By mirth

on May 17, 2007
09:58 AM

boxer - those of us with families who regularly navigate roads filled with SUV's will want something bigger, trust me. I was considering a compact car (never min sub-compact) recently and my wife didn't want me in anything smaller than a mid-size. That's the attitude that will limit the Smart car to a niche.

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By carlisimo

on May 17, 2007
10:13 AM

No one's ever claimed that it would be the next Corolla, or that the smart would make a great family car... all it has to do is make a profit (which I admit will be a challenge). Or maybe it doesn't even have to do that, if Daimler is using it for fleet mileage purposes.

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By mnorm1

on May 17, 2007
10:14 AM

Boxermike,
Big cars - Mostly in agreement with your point. Especially if you're including SUV and CUV. But Americans like big. I confess to being American as well. My car bigger than I need.
Never carry more than one passenger - I think a vast majority need room for more than one passenger. Most that don't need the room would want it, I think. Seating for two will be a significant factor in limiting sales.
 
Don't buy out of fear - My comment in the first post wasn't about fear, it was about lawyers and the lure of money. At some point, after a fatal accident involving a Smart, some lawyer will use the "Unsafe at any Speed" argument.
 
Subytrojan,
Any one that doesn't admire and respect Penske's business acumen is a fool. But he is not infallible.
Canadian sales have pretty much followed the trend Karl described.
Smart has never been profitable for the manufacturer, I don't know about the dealers.
 
I'm not against the Smart. I just don't see it being a big hit after the initial flurry.

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By boxermike

on May 17, 2007
10:27 AM

Mnorm1, sorry, not buying your lawyer-bashing. If the car passes crash tests (which it will need to do to be sold state-side) there are no liability issues for the importer.
 
Mirth: I navigate roads full of SUVs --and maniacial cabbies in Panther-platforms-- every day in one of the most dangerous driving cities in the country. I"m not going to buy something bigger than I need just to keep up in some sheetmetal arms race.

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By genius163

on May 17, 2007
10:58 AM

I work here and I love it. I don't feel like I am one of those "gotta be cool" folks, but I think it is so cute and little and I want to snuggle with it on the couch while watching a romantic comedy. I am going to go to one of the test drive events next month, but I don't know if I will actually buy one when they come out.

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By mnorm1

on May 17, 2007
11:53 AM

Never underestimate lawyers when BIG $ is involved. they got money from Ford Exporers - they passed crash tests; they got money from tobacco companies - printing on the package told you it would/could kill you.

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By brett8210

on May 17, 2007
02:46 PM

I have to admit that these cars fascinate me. But what is their performance like? I have read a few first takes, but no one really has done a definative test regarding their relative characteristics.
 
They would not work for me, but my hat goes off to those whose lifestyles allow for this. I personally think it would be fun, assuming that their performance was not drop dead aweful.

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By carlisimo

on May 17, 2007
03:47 PM

Its engine figures are pretty bad for the USDM $12-15k range (in Europe 1.0L engines aren't unusual) - the closest equivalent I can think of is the '92-'95 Civic CX, also with 71hp (and probably similar weight). But I've driven that Civic and I liked it. A lot will be riding on how good the transmission is.
 
One thing I find interesting about this car is that in Japan and Europe it started a revival of the rear-engined subcompact (the Mitsubishi i followed, and rumor has it Fiat is working on one). I think the Mini's superior controllability all but ended that trend, but modern suspensions make it at least possible. With that in place, crash protection standards are making it actually desirable, because a good frontal crumple zone is easy with no engine up there. The i is a 4-seater, and I think it's way cooler than the smart.

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By george2040

on May 17, 2007
06:22 PM

"The problem for the Smart is:
Edmunds lists 9 coupes under $15k. The highway mileage ranges from 30 -40.
Edmunds lists 19 sedans under $15k. The highway mileage ranges from 29 -39. "
 
EPA Highway fuel economy is irrelevant for the Smart. City cycle fuel economy is what matters because it's too small to safely share the highway with light trucks in my opinion.
 
As consumers why to we pay so much attention to the EPA highway fuel economy number when we normally experience fuel economy closer to the EPA city number in day-to-day use? I never drive a steady 55mph. I'm mostly driving stop and go with an occasional tank at a nice steady 80mph on the highway.

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By mnorm1

on May 17, 2007
07:26 PM

Old habits die hard. I'm used to seeing hiway mileage touted.
Is 40 mpg in the city expected?
 
City mileage for the sedans listed on Edmunds ranged 22-34.
 
Edmunds videos on the smart:
http://www.edmunds.com/insideline/dc/Search?q=smart&rP=1#
 
I had to laugh when the Buick Lucerne commercial came on.

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By gcn

on May 17, 2007
09:34 PM

The Smart doesn't have a front crumple zone, it has a rear one. The (highly visible) frame transfers a frontal impact to the rear of the car where it is absorbed while the occupants are protected in the middle. This unusual arrangement appears to work quite well. It will be interesting to see the results of US crash testing (don't forget it has passed crash tests elsewhere, and they are more stringent than US ones in some respects, and vice-versa in others).
 
This also isn't the first generation of the Smart, this one has recently been completely redesigned, a redesign which includes changes to improve safety, and to make it less expensive to produce. Whether the latter is enough to make it profitable this time around isn't yet clear, but it should at least cause a smaller loss than the first one.
 
For some reason the US isn't getting the turbo-charged one, at least initially. This might prove to be a mistake, even if most buyers opt for the non-turbo one - there's plenty of cars which avoid being labelled "underpowered" simply because one version is more powerful than the one(s) which sell in volume.

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By chasingrabbits

on May 17, 2007
11:20 PM

gcn is correct - the Smart has a super strong passenger compartment structure rather than a crumple zone. In one test I saw recently, they ran a Smart into a solid concrete barrier at 60mph head on. Of course the car was completly destroyed and the occupants would have died from the forces of the impact. However, they would not have been injured from being smashed by the car itself. In fact the doors still opened and closed properly - a testatment to the strength of the cabin structure.
  
The target market for this car would be those folks who commute to work everyday and want to do so using as little of the their hard earned money as possible for purchasing fuel. Another advantage of the Smart is it's ability to park perpendicular to the road due to it's short length.
  
Having lived overseas for the past 15 years, I have wondered for some time why American car manufacturers don't sell some of their great little cars in the states. It seems the only small cars they offer to Americans or poorly built underperformers which tends to stereo-type all small cars as junk.
  
Here in South Africa we have a couple of small cars made by American mfgs. that I am sure would sell well back home. Chevrolet has the Aveo a very popular small car while Ford sells the Ka. Personally I think the Ka is ugly, but it has great build quality and is popular in Europe as well.
  
Judging by the poor performance of US auto manufacturers it would seem that now is the time to start thinking outside the box and start building products that people want. They could start with an exterior that looks so good you (the buyer ) just has to have one. As for me I think the Smart is a good example of just such a design.

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By otaku18

on May 17, 2007
11:29 PM

Its a neat little car, very cute as small cars can be. But very impractical for anything but singles or couples who live in the city. I've only seen two both in the city I live in (boise idaho) definetly seems a bit pricey and it seems like the fuel economy could be better. A diesel like they have elsewhere would be nice. I wouldn't mind seeing more of them. Great for downtown parking etc. I'd be afraid though of a wreck, that and I''m not sure I could fit in one.

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By dancote

on May 18, 2007
05:16 PM

I'm an early adopter; got my $99 deposit down as soon as it was available. Saw these when I was working in England in the late 90's and have been wanting one since then. Just a pity we won't be getting the turbo-diesel but with some well-chosen Brabus goodies I'll get by. (Or go to Canada for an engine swap}
  
Don't need a big car any longer and all the other small choices are way too "me-too" for my taste (Scion xB is the exception). Pick-ups and SUVs? You gotta be kidding unless you need a truck for work or you have to go off-road to get to your house.
  
Safety? These little cars have had to pass some pretty stringent European requirements for years. Of course they also have the benefit of sharing the road with considerably better drivers than we have to deal with here.
  
Don't ride big Harleys any more either. My Suzuki Burgman 650 scooter is more than adequate for solo local trips and two-up touring.
  
Now if I could just figure a way to down-size from a 40' diesel-pusher motor home I'd have the whole thing licked.
  
Regards,
Dan

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By evolow

on May 20, 2007
12:00 PM

I believe Mercedes will do well with this car. As stated already it will be the new “cool” car in the beginning and after will cater to only a small demographic but that is expected. Also SMART makes the four door “forfour” and even a convertible in Europe. If those models were brought to the states in a few years it would certainly broaden buyer range.
Let’s not forget the mini!!

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By brett8210

on May 20, 2007
05:19 PM

The Mini is a performer. It is not an economy car in the strict sense of the word. This thing, from what I understand, is underpowered, has no back seat. Can hardly handle a trip the grocery store. And for all those "urbanites" how will it handle the necessary trips to Pottery Barn and Crate and Barrel? Guess you'll have to take a taxi for that.

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By carlisimo

on May 20, 2007
08:59 PM

People who shop at those stores will be buying this as a second or third car, not a primary. Maybe as the primary car for one family member. It is cheap, after all. But I wouldn't know, the urbanites I lived among tend to be Craigslist shoppers instead.

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By bumpy

on May 21, 2007
02:30 PM

The opportunity to swap a back seat I never use for improved gas mileage I can use every day sounds pretty good to me.

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By brett8210

on May 21, 2007
02:50 PM

One of my best friends in college had an early Miata. One of the most fun cars to drive ever. Light, nimble, perfect 5 speed transmission, but it had no back seat. When the two of us were just riding around it was fine, but I can't count how many times he had to borrow my car or some other friends car inorder to get something done.
 
For those with disposible income, this can be the perfect solution (wondering why someone wouldn't buy a 2 year old used miata instead). But for those that want reliable transportation that can address most, (if not all) our needs, this solution is severely lacking.
 
Why not belly up to the bar and get a Prius. At least you get more room and better gas milage?

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By carlisimo

on May 21, 2007
04:02 PM

A Prius is twice the cost, and my Miata gets 25mpg at best and that's not unusual. For $15k I'd get an xB or something like that, but I can see why someone would be emotionally attracted to the smart and if that's the case, there's not much you can do.

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By brett8210

on May 21, 2007
04:58 PM

You can get a Prius for 22,500 before incentives. Yes that is significantly more, but if mpg is the king of considerations...
 
There are a ton of cars that you can get between $14K and $17K, so lets not pretend that these cars are practical. The emotional is the center of the draw, and it will wear off. The allure of the Mini and other "emotional" cars is that they have a sold practicality that can sustain the brand. Therefore, when the newness wears off the car is still considered a good choice. This car will not have that necessary trait for long term success.

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By flicmod

on May 22, 2007
09:34 AM

Once upon a time, Honda had the Insight. It was a two-seat hybrid with quirky styling. A company named Toyota came along with their version of a hybrid vehicle and they called it the Prius. While the Prius cost more than the Insight, the added fuel mileage and practicality (back seat) was packaged in an equally quirky container. The Insight is no more. The Prius reigns as the poster child for compact hybrids.
 
Moral of the story: The only people that will buy these cutesy mini people-movers are the ones that are willing to sacrifice practicality. Based upon the current trend of crossovers that afford lots of practicality, I don't see the Smart as getting very far... again. In the end, the Prius will still reign supreme for compact cars with excellent MPG.

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By SubyTrojan

on May 23, 2007
06:06 PM

Have a nice trip? Man falls 120 feet and lives by landing on Smart car
http://www.autoblog.com/2007/05/23/have-a-nice-trip-man-falls-120-feet-and-lives-by-landing-on-sma/

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By flicmod

on May 23, 2007
09:09 PM

Haha! How the heck did you find that Loren? I guess if we ever have a problem in this country with people falling out of 12 story windows we could always cushion the sidewalks with Smart Car's :-)

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By racerboi25

on May 31, 2007
11:32 PM

hmm wel i gotta say, these cars are pretty cool, in a 'out-there' way, but seriously, these cars wont really work in the US...New York, Los Angeles, sure where space is tight and people want to stand out, but i cant see it taking off...they havnt really shook the world here in Australia, and i think Australia is a good as any nation to depict the type of buyers Smart can expect....both large nations with a passion for larger cars
 
i mean, when theres cars like the Fit or Yaris, why would you want a over-priced buzz box? Smart is cool, but Europe is really the only place these cars will work.plus Mini's are much cooler.

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By bapcha

on June 13, 2007
04:39 PM

It WILL FLOP. They should cut the price in HALF and try India/China.
 
I wish Smart very bad luck in the US. Can't imagine Penske getting into a dud like this one. I thought he was smart. Too rich perhaps.

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