SMART News:Smart's Dealer Network Will Shrink By Two-Thirds

[William Maley]

Earlier this year, Smart announced that it would be ending sales of the gas models and switch over to selling electric only models. This announcement has many Smart dealers running for the exit.

According to Automotive News, dealers had until the end June to make a decision whether to keep selling Smarts or move to a service-only operation. Out of the 85 dealers in the U.S., 58 (about two-thirds) would move to the service-only operation. Smart spokeswoman Donna Boland said these numbers are preliminary.

Dealers that opt out of selling Smart will transition to service once they sell out of inventory. The 'vast majority' are expected to transition by the end of this year.

The remaining 27 dealers are in areas with zero-emission vehicle mandates that will give the brand "the highest market penetration potential," Boland said. Such areas include San Francisco, New York, and Los Angeles.

As Automotive News points out, Smart's 27 dealers will make it one of the smallest dealership networks in the U.S. The likes of Lamborghini and Lotus have larger dealer networks at 31 and 41 respectively. 

Source: Automotive News (Subscription Required)

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[G. David Felt]

The price they charge for a Smart is a joke and way better options out there. They should just kill it, MB will have EV's according to SMK in every product line, so why waste money on a smart. Only in Europe does these cars make sense since they save everything historical and do not have space for comfy bigger auto's.

Buying a Smart equals questionable decision skills.

[FAPTurbo]

smart EV's are the best version available, without any janky transmission nonsense and underwhelming fuel economy. 

if they position themselves as a premium compact EV, they'll probably do fine.

[balthazar]

BUT C&G TOLD ME EVERYONE WANTS EV COMPACTS

[Robert Hall]

19 minutes ago, balthazar said:

BUT C&G TOLD ME EVERYONE WANTS EV COMPACTS

Well, a lot of people put down deposits on the Tesla 3 (an EV compact).   (the Smart is more of a sub-sub compact or Kei car)

 

[balthazar]

[just bustin on Fap, Cubical]

[FAPTurbo]

usually you fap then bust... not bust on a fap 

[Intrepidation]

Well I guess if you get interrupted during the fap it'd be busted.

[balthazar]

You GOZE to lock the door!!

[Blake Noble]

Lock the door? What if you want the whole world to see what you're capable of?

[G. David Felt]

28 minutes ago, Blake Noble said:

Lock the door? What if you want the whole world to see what you're capable of?

Then just make sure you not equipped with a Chicken Bone!

[smk4565]

Making Smart EV only makes a lot of sense.  Cutting down the dealers also makes a lot of sense.  The Smart car isn't an all around car, it is full of compromises.  It only works in cities, where you have loads of congestion, don't drive on a highway, and make short trips to placed with limited parking.   I think Boston, New York City, Philly, D.C. and California are markets where Smart EV's make sense, in most of the country they do not. 

[G. David Felt]

11 hours ago, smk4565 said:

Making Smart EV only makes a lot of sense.  Cutting down the dealers also makes a lot of sense.  The Smart car isn't an all around car, it is full of compromises.  It only works in cities, where you have loads of congestion, don't drive on a highway, and make short trips to placed with limited parking.   I think Boston, New York City, Philly, D.C. and California are markets where Smart EV's make sense, in most of the country they do not. 

A Chevy BOLT in those same cities makes more sense for the same price than a Smart EV.

[smk4565]

4 hours ago, dfelt said:

A Chevy BOLT in those same cities makes more sense for the same price than a Smart EV.

Except the Smart is $24,000 and the Bolt is not.  And Daimler has way more $7500 credits to use than Chevy.  I'd like to see Them get the Smart car down to like $20k then even when the tax credit is gone it is a decent deal.

[G. David Felt]

23 minutes ago, smk4565 said:

Except the Smart is $24,000 and the Bolt is not.  And Daimler has way more $7500 credits to use than Chevy.  I'd like to see Them get the Smart car down to like $20k then even when the tax credit is gone it is a decent deal.

BOLT still the better deal, actual price per the web site is $24,550 for a 58 mile range EV with only 110/240 charging, no fast charging or level 3 available. Charging time is 6hrs / 3hrs or 80% charge in 5hrs / 2.5hrs depending on 110 or 240.

This has zero appeal as even the web site says range will diminish with heater or AC use. So you really might have a 40 mile range auto. 

If living in the city, then maybe, but as a commuter car, no the BOLT is the much better pick for an EV.

[Drew Dowdell]

MB totally screwed up here.

*Sits in his CEO Armchair*

The SMART brand should have been expanded. It has virtually no name brand recognition or baggage in the US.  It should have become MB's family car brand.  Co-develop some cars with Renault for US consumption and sell them here. Just name them Smart 1, Smart 2, Smart 3, etc.  There was a ready-made network of dealers ready to go, no need to build it up from scratch.

I expect the SMART brand will close in the US in a few years. 

[G. David Felt]

Just now, Drew Dowdell said:

MB totally screwed up here.

*Sits in his CEO Armchair*

The SMART brand should have been expanded. It has virtually no name brand recognition or baggage in the US.  It should have become MB's family car brand.  Co-develop some cars with Renault for US consumption and sell them here. Just name them Smart 1, Smart 2, Smart 3, etc.  There was a ready-made network of dealers ready to go, no need to build it up from scratch.

I expect the SMART brand will close in the US in a few years. 

I like that Idea

Smart 1 - Current 2 person car.

Smart 2 - 4 Person Sedan

Smart 3 - 5 person CUV

Smart 4 - 4/5 person Crewcab mini pickup.

 

[Robert Hall]

They could make Smart an all-EV family car brand...small sedan, hatchback, and CUV...a tiny 2 seater just limits the sales potential.   They definitely haven't built the brand to it's potential. 

[Drew Dowdell]

30 minutes ago, smk4565 said:

Except the Smart is $24,000 and the Bolt is not.  And Daimler has way more $7500 credits to use than Chevy.  I'd like to see Them get the Smart car down to like $20k then even when the tax credit is gone it is a decent deal.

You get what you pay for. The Bolt can make it from Pittsburgh to Lancaster on a single charge.  SMART can't even make it to Wheeling. 

1 minute ago, Cubical-aka-Moltar said:

They could make Smart an all-EV family car brand...small sedan, hatchback, and CUV...a tiny 2 seater just limits the sales potential.   They definitely haven't built the brand to it's potential. 

Well they could, but with 2/3rd of all dealers opting out of the SMART brand, it's not going to happen.

[balthazar]

16 hours ago, smk4565 said:

Cutting down the dealers also makes a lot of sense.

Cutting dealers when you have an excess is a good idea, but cutting from 85 dealers to 27 is called 'going out of business'.

[G. David Felt]

48 minutes ago, balthazar said:

Cutting dealers when you have an excess is a good idea, but cutting from 85 dealers to 27 is called 'going out of business'.

This makes me think this is a stop gap measure only till MB has EV's in their own product line and then Smart is retired much like Toyota did with Scion as they absorb the 2 person car into the MB badge lineup.

[Drew Dowdell]

11 minutes ago, dfelt said:

This makes me think this is a stop gap measure only till MB has EV's in their own product line and then Smart is retired much like Toyota did with Scion as they absorb the 2 person car into the MB badge lineup.

Well, they already have an A, B, and C-class... how do you go smaller than that? No-Class?

[Robert Hall]

3 minutes ago, Drew Dowdell said:

Well, they already have an A, B, and C-class... how do you go smaller than that? No-Class?

Wrap around and do Z-, X-, Y- class...     IIRC, I read they plan to have a different naming scheme/subbrand for EVs.

Edited August 15, 2017 by Cubical-aka-Moltar

[G. David Felt]

4 minutes ago, Drew Dowdell said:

Well, they already have an A, B, and C-class... how do you go smaller than that? No-Class?

I figure they merge Smart into the new Generation EQ EV lineup from MB.

[Robert Hall]

2 minutes ago, dfelt said:

I figure they merge Smart into the new Generation EQ EV lineup from MB.

EQ..that's the name I was trying to think of...

 

https://en.wikipedia.org/wiki/Mercedes-Benz_EQ

[G. David Felt]

13 minutes ago, Cubical-aka-Moltar said:

EQ..that's the name I was trying to think of...

 

https://en.wikipedia.org/wiki/Mercedes-Benz_EQ

What I do not get is why waste effort putting 3 models on the Smart lineup? MB should learn from the mistake Toyota made with Scion and just merge Smart into the MB brand, have the EQ lineup being as I stated above.

EQ1 - 2 person EV car

EQ2 - 4 person EV car

EQ3 - 4/5 person CUV compact

EQ4 - 5 person CUV Mid Size

EQ 6 - 7/8 person 3 row CUV 

EQ7 - 7/8 person 3 row full size SUV

EQ-T - 5 person EV mid size pickup

Since I never understood the naming convention for AMG versions, you can just add a W to the end of each one for WARP mode.  

This way MB saves money on the wasted Smart branding and advertising, though I never have seen advertising for Smart cars and they keep their idiot naming convention for their new EV lineup of auto's.

[ocnblu]

These dealers are smarter than I've given them credit for.  EV trash, who wants that junk?

[smk4565]

7 hours ago, dfelt said:

BOLT still the better deal, actual price per the web site is $24,550 for a 58 mile range EV with only 110/240 charging, no fast charging or level 3 available. Charging time is 6hrs / 3hrs or 80% charge in 5hrs / 2.5hrs depending on 110 or 240.

This has zero appeal as even the web site says range will diminish with heater or AC use. So you really might have a 40 mile range auto. 

If living in the city, then maybe, but as a commuter car, no the BOLT is the much better pick for an EV.

They need to get a 100 mile range on the Smart for the current cost, the current car has too small a range.  100 miles at a $24k cost, sort of fills that low end niche for now. 

[smk4565]

I think the plan for the EQ cars is do do something like Mercedes-EQ C-class, Mercedes EQ E-class, etc.  They would ride on a special EV platform but mirror the gas car line up.  If they plan 10 EV's they basically have to do like 4 sedan, 4 suv, 2 sports cars or something.  That would make the most sense to start that way since post 2030 they will probably only have EV's. 

The German 3 said they are not going to spend any money on internal combustion engine development after 2023, Chancellor Merkel said Germany will eventually ban internal combustion engines.  So no sense trying to make new classes, when C-E-S are all going to be EVs in 15 years.

[G. David Felt]

1 hour ago, smk4565 said:

I think the plan for the EQ cars is do do something like Mercedes-EQ C-class, Mercedes EQ E-class, etc.  They would ride on a special EV platform but mirror the gas car line up.  If they plan 10 EV's they basically have to do like 4 sedan, 4 suv, 2 sports cars or something.  That would make the most sense to start that way since post 2030 they will probably only have EV's. 

The German 3 said they are not going to spend any money on internal combustion engine development after 2023, Chancellor Merkel said Germany will eventually ban internal combustion engines.  So no sense trying to make new classes, when C-E-S are all going to be EVs in 15 years.

Yet per their own announcement, MB only gets 7 auto's as Smart is to get 3 EV auto's.

[smk4565]

13 minutes ago, dfelt said:

Yet per their own announcement, MB only gets 7 auto's as Smart is to get 3 EV auto's.

Everything I ever read was 10 electric Mercedes by 2022, not Daimler making 10 EV's.

EQ brand A, C, E, S-class size sedans and GLC, GLE, GLS size SUVs are a given, that is 7 right there.   At some point there will be an AMG electric car, and I have to imagine they want an electric SL roadster.  

[Drew Dowdell]

Electrified does not mean EV.

Electrified does not mean EV.

Electrified does not mean EV.

Electrified does not mean EV.

[regfootball]

Used Spark EV would be a better buy

[balthazar]

Innit that pretty close to Mitsu's "iQ"?

Ooooooo! King-sized missed opprtunity > the "Smart iQ" !!

[Robert Hall]

11 hours ago, balthazar said:

Innit that pretty close to Mitsu's "iQ"?

Ooooooo! King-sized missed opprtunity > the "Smart iQ" !!

Scion had the iQ.   Mitsu's electric 4dr is the i-MiEV

Edited August 16, 2017 by Cubical-aka-Moltar

[smk4565]

12 hours ago, Drew Dowdell said:

Electrified does not mean EV.

Electrified does not mean EV.

Electrified does not mean EV.

Electrified does not mean EV.

True, so Mercedes is making 10 EV's and 50+ electrified models by 2022 then.    Exciting stuff.

[balthazar]

wonder if the Daimler bean counters are going to be 'excited' at the nosedive on the sales chart?

MB plays up the S550e online, touting all the 'advantages' ("handcrafted interior", all LEDs, 0-60 in 5 sec (or whatever)) along with the 54/63 MGe... but have only sold 411 units thru June. Literally, "no one buys it". Other s-class sales thru June : 7,172. S550e is only 6%!

Going all EV / hybrid is going to absolutely MURDER the brand's sales.

Edited August 16, 2017 by balthazar

[G. David Felt]

16 hours ago, balthazar said:

wonder if the Daimler bean counters are going to be 'excited' at the nosedive on the sales chart?

MB plays up the S550e online, touting all the 'advantages' ("handcrafted interior", all LEDs, 0-60 in 5 sec (or whatever)) along with the 54/63 MGe... but have only sold 411 units thru June. Literally, "no one buys it". Other s-class sales thru June : 7,172. S550e is only 6%!

Going all EV / hybrid is going to absolutely MURDER the brand's sales.

I totally get what you say Balthazar, I cannot see MB giving up totally on ICE as there are too many markets that will have zero EV infrastructure and even though some gov's have set the line in the sand for the death of ICE, I bet it will get moved.

At least many companies are now moving forward and it will be interesting to see how they compete especially with Tesla.

[Drew Dowdell]

18 hours ago, balthazar said:

wonder if the Daimler bean counters are going to be 'excited' at the nosedive on the sales chart?

MB plays up the S550e online, touting all the 'advantages' ("handcrafted interior", all LEDs, 0-60 in 5 sec (or whatever)) along with the 54/63 MGe... but have only sold 411 units thru June. Literally, "no one buys it". Other s-class sales thru June : 7,172. S550e is only 6%!

Going all EV / hybrid is going to absolutely MURDER the brand's sales.

I'm going to have to disagree with you here primarily because the entire industry is heading to a completely hybrid/EV lineup.  If your only choices are a Benz hybrid, BMW Hybrid, Volvo Hybrid, and Cadillac Hybrid, you're not going to stop your years of Benz buying just because they now only sell hybrids.

 

Edit: Also Balth, to be fair, the S550E went out of production late last year and is being reintroduced after being refreshed late this year. It's not even currently listed on Benz's website.  So first half 2017 sales figures aren't indicative of take rate. 

[balthazar]

• I swear I just looked at the S550e on the website 2 days ago. Hybrid V6. Had it's own scrollable multi-page display. Did it come down in the last 48 hours then? Sales were higher in July than any other month this year.

• RE plug-ins... sure; if everyone short-terms the expiration of ICEs, buyers will go with EVs / hybrids... but a short-term switch over isn't feasible, and it's also not desirable. OEMs have to adhere to a business case approach based off of data- and EV/Hs aren't pulling any weight yet. Any OEM executing a full-stop switchover is courting extremely high levels of risk, levels current numbers don't come remotely close to supporting. Too much money at stake. Again I'll interject: Tesla Model S sales thru July : 12,620. The car with the absolute highest level of recognition & consumer good will is struggling to move 21,000 units annually (it did 29K last year and 25K the year before).

The MB e-class is on pace for 50K units this year... what is the internal projection for the model if it were suddenly and only an EV? Would it surpass the Model S's volume? I don't see it- the EV crowd is flocking to Tesla right now- why go to "a copy" when you can "have the original"? In other words, logically assuming a volume south of the Model S, an EV E-class might be looking at a best case scenario of 10K units initially, keeping in mind what the market is willing to bear short-term. Who's going to green-light an 80% production decrease?? Especially knowing how ravenous Daimler is for production volume.

There is a very wide gap between topical discussion/journalism and what buyers are agreeing to sign for.
These future announcements still come off as 'testing the feedback waters' to my ear.

Edited August 17, 2017 by balthazar

[Robert Hall]

Looks like MBUSA has updated the S-class page for MY 2018... 

[G. David Felt]

29 minutes ago, Cubical-aka-Moltar said:

Looks like MBUSA has updated the S-class page for MY 2018... 

Had to hide those dismal EV / hybrid sales from the Bean Counters!