First, if you haven't heard of the the smart car, it will be DaimlerChrysler's entry in the compact market segment in the next couple of years.
The smart car is small. Very small. It's dimensions are 8.8 feet long, 5.1 feet tall, and 5.1 feet wide. Its maximum speed is 90 miles per hour and runs at about plus 40 miles a gallon. It is expected it will have a sticker price less than $15,000.
There's definitely strong interest in it. According to the United Auto Group (UAG), which smart is a part of, it has received more than 1,100 requests from folks that wish to become dealers. The fact that they are receiving more requests than the number of dealerships allows the UAG to be more discriminatory.
Other interesting differences in this roll out compared to others is that Smart USA, a part of UAG, will run the customer care centers in each dealership. Dealerships traditionally perform their own repairs. So customer inquiries go directly to Smart USA and therefore, UAG. And owners of the car can be given an 800 number to call for roadside assistance.
Both strategies are being implemented to reassure Americans that the smart is a viable car. Already the brand has received mixed reaction from consumers, who are used to their mid-sized sedans (which are nearly 3 times the size of the smart) and even larger--sometimes much larger--SUVs. Jerry Marks of AutoRetailStocks, who wrote the article below, is excited by the UAG's strategy but acknowledges the unknowns that go with a new brand and, especially, with such a controversial flagship.
Our take? The UAG has its work cut out for it. Compacts biggest advantage is their fuel economy and while the smart's mpg is decent, larger, compact cars such as the Honda Civic or Chevrolet Cobalt can nearly match it with much more room expected by buyers. Unless owner DaimlerChrysler reengineers the smart to match nearly a Prius or other full hybrid, we suspect smart dealers will feel quite dumb.