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.
Speaking with executives at Mercedes-Benz USA, which has recently taken over control of Smart USA from original importer Penske, Motor Trend learned that the micro-car brand is far from finished in the U.S. With the full backing of the German mothership, Smart 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 plan starts with marketing. Think about it. When was the last time you saw a Smart commercial on TV? Your memory isn't to blame -- there's never been one. According to Mercedes-Benz, Penske simply didn't have the resources at its disposal to mount the kind of massive media campaign needed to sell cars. Mercedes on the other hand does, 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.
The point of the ad campaign, we're told, is not to re-educate the market about Smart cars, but rather to expose people to them. Brand awareness, Mercedes says, is very low right now, and dealers say they haven't seen any advertising in three years. According to Mercedes, most car buyers don't know what Smart is, and those who do don't necessarily have the right idea about the brand. Judging by the comments on our last Smart Fortwo test, Motor Trend readers think the car only sells in San Francisco, but Mercedes tells us that many Smarts are actually sold in Texas, of all places. Smart is hoping to send a message of value and downsizing as the buying public begins to embrace small cars and restrained spending.
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 Benzes. 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.
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