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Smart Sales going up with High Gas Prices

Posted March 31 2008 07:59 AM by staff 
Filed under: Opinion


Well, the belief that Americans want only large performance cars has evaporated with each increase in the price of gasoline.



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We’ve come to the conclusion that it is better to be fuel efficient and a dollar wiser than to lay out tons of money to fuel a muscle car. And one small car that is reaping the benefits is the Mercedes-Benz Smart ForTwo. The car has been on the U.S. market for only a few months and demand has already exceeded supply. In fact, it is being reported that there is a deficit of 15,000 vehicles.

There is only one distributor of the Smart ForTwo in the U.S. and that’s the Penske Automotive Group. Roger Penske, CEO of the company, said that he doesn’t expect supply to keep up with demand.

According to Leftlane News,the Smart ForTwo factory is already running at full capacity, so, unless they construct another plant fast, then the U.S. market is destined for deficits -- as far as the Smart ForTwo is concerned, not the U.S. government budget, although deficits are also expected there too.

Penske says that he can sell 40,000 Smart ForTwos this year. That’s 15,000 more than he will be getting. By the way, all of the Smart ForTwos are already committed to buyers. Anyone who wishes to buy a new SmartForTwo who has not already committed to one will have to wait until next year.

Then, again, there may be a chance to get one now. It is being reported that there has been a cancellation rate of as high as 25 percent. Prospective buyers are urged to visit the company website and deposit $99 for their Smart ForTwo. The deposit is refundable.

It is expected that 3,000 cars will be delivered to 67 dealers by the end of the first quarter this year. It is expected that there will be 74 dealers selling the car by the end of the year.















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