Americans' newfound love affair with small cars is about to be tested with the arrival of the 2008 Smart Fortwo. Encouraged by the success of the Mini, DaimlerChrysler is hoping to encourage forward-thinking urbanites to try its diminutive two-seater. With a little help from the United Auto Group, which has signed an exclusive deal to distribute the car, the Smart Fortwo will arrive in the U.S. in January 2008. It will be available as both a coupe and a cabriolet and priced from around $11,000-$14,000.
What is Smart?
It's difficult to think of a car company with a more unfortunate history than Smart. It began life in the early '90s as a partnership between Mercedes-Benz and the Swiss watch manufacturer, Swatch. They had a vision to create a small, funky city car for the 21st century, but the relationship broke down and Mercedes was left to complete the project. The first Smart arrived in Europe in 1998, but suffered from handling problems and had to be redesigned and then relaunched.
The original plan was for Smart to develop a comprehensive range. The original two-seater CityCoupe was followed by a Roadster and a Roadster-Coupe and then by a larger four-seater called the Forfour. The roadster was cute but expensive, while the Forfour, developed with Mitsubishi, was dull and overpriced. Neither sold well and Smart continued to suffer heavy losses.
To the slaughterhouse went the roadster and Forfour, and earlier this year, DaimlerChrysler was openly considering either shutting Smart or selling it. Only the enthusiasm of DaimlerChrysler CEO Dieter Zetsche saved it, and now Smart has a new business model built around a single model, the Fortwo.
The new Fortwo
The new Smart is larger than the original, but not by much. It's 7.6 inches longer than before and almost 2 inches wider, with a roughly 2-inch-longer wheelbase. This increase was required to provide additional luggage capacity and to meet pedestrian safety requirements. But despite this, the Fortwo is still a tiny car. At 106 inches long, it's more than 3 feet shorter than the new Mini.
Clever packaging makes the most of the space. Just one engine will be offered in the U.S. — a 1.0-liter, three-cylinder developing 71 horsepower and 68 pound-feet of torque — and it's mounted under the trunk floor, just in front of the rear axle. The steeply raked rear hatch provides a surprisingly spacious load bay. There are 7.8 cubic feet of cargo space, which gives it an edge over the Mini. Occupant space is also generous. The passenger seat is positioned slightly behind the driver seat to optimize shoulder room, and this 6-foot-4-inch scribe had no trouble getting comfortable.
Smart would like you to think that its new styling has 'grown up'. The exterior shape, while still instantly recognizable, is more angular and masculine than before. Inside, the cutesy curves of the original have been replaced by a blocky center console that's disappointingly conventional. At least the periscope-like rev counter and clock — trademark Smart features — have been retained.
The Tridion safety cell helps define the Smart's styling. (It's the two-tone element you can see in photographs.) This is a deliberate attempt to reassure customers that such a small car can be safe. Front and side airbags are standard, while the Electronic Stability Program (ESP) is designed to help drivers avoid an accident in the first place.
Fixing the problems
The old Smart was heavily criticized for its slow-witted steering and ponderous, jerky gearchange. Both elements have been updated for the new car. The automated manual gearbox now offers five speeds instead of six and the semiautomatic shifts are said to be smoother and faster than before. A fully automatic mode will also be available, and Smart is redesigning the gear selector to make it more intuitive for American customers. The steering is 10 percent more direct than the old car, according to Smart.
The longer wheelbase and wider track should also help improve both the Smart's handling and its notoriously harsh ride. With 71 hp on offer, it should prove capable of keeping up with the cut and thrust of city traffic, and with a top speed of 90 mph, it's highway-capable.
The U.S. pitch
In America, the Fortwo will be distributed by the United Auto Group, a U.S. dealer group owned by racing legend Roger Penske. It will start with the Pulse at around $11K, which will have steel rims and no air-conditioning. The more upmarket Passion will cost around $13K and add air, alloys and a transparent polycarbonate roof. Topping the range will be the $15K convertible, which boasts an electrically folding soft top that can be opened or closed at any speed.
"When people commute they're often alone, so why would they want to take on the cost of a four-seater vehicle?" asks Roger Penske. "The Smart will achieve over 40 mpg at a time when fuel costs are higher than I can ever remember. This is a metro car for a high-density market. The Smart will sell around the ownership experience, its value and the Mercedes name plate."
Penske is remaining tight-lipped about his volume aspirations. "In Canada, Smart sold 4,000 vehicles in its first year," he continues. "The U.S. market is 10 times bigger, but you cannot apply a simple multiple. We need to maintain a profit for the dealer and a profit for the OEM [the manufacturer]." Smart will initially launch with around 50 dealers. These will be a mix of existing Mercedes, United Auto Group and Chrysler/Jeep dealers, concentrated in high-density urban areas.
The responsibility of marketing the new car falls to David C. Schembri. "This is the only car in the non-luxury segment that has both rational and emotional appeal," he says. "Its appeal is not defined by age and income. We've been approached by everybody from college students to some of the most high-profile people in the United States." Neither Penske nor Shembri regard the Mini as a natural competitor. "A typical Mini will be $6,000-$7,000 more expensive," says Penske, "and the ownership costs are higher."
The marketing campaign will be led by a road show, which will take the Smart to urban centers. "The road show will allow people to see the cars, sit in the cars and drive the cars," says Shembri. "It's the best way to understand Smart. I call it 'Discovery marketing'." The 21-week road show will begin next spring and should reach 66,000 people.
More mature than before
Smart's President, Ulrich Walker, reckons that his business model is not dependent on U.S. success, but there can be no doubting that the new car has been developed with the world's largest market in mind. The new Fortwo is larger and more mature than before, and Smart will be hoping that it captures the imagination of environmentally friendly metrosexuals who fancy something different. Only time will tell if they're right.
What is Smart?
It's difficult to think of a car company with a more unfortunate history than Smart. It began life in the early '90s as a partnership between Mercedes-Benz and the Swiss watch manufacturer, Swatch. They had a vision to create a small, funky city car for the 21st century, but the relationship broke down and Mercedes was left to complete the project. The first Smart arrived in Europe in 1998, but suffered from handling problems and had to be redesigned and then relaunched.
The original plan was for Smart to develop a comprehensive range. The original two-seater CityCoupe was followed by a Roadster and a Roadster-Coupe and then by a larger four-seater called the Forfour. The roadster was cute but expensive, while the Forfour, developed with Mitsubishi, was dull and overpriced. Neither sold well and Smart continued to suffer heavy losses.
To the slaughterhouse went the roadster and Forfour, and earlier this year, DaimlerChrysler was openly considering either shutting Smart or selling it. Only the enthusiasm of DaimlerChrysler CEO Dieter Zetsche saved it, and now Smart has a new business model built around a single model, the Fortwo.
The new Fortwo
The new Smart is larger than the original, but not by much. It's 7.6 inches longer than before and almost 2 inches wider, with a roughly 2-inch-longer wheelbase. This increase was required to provide additional luggage capacity and to meet pedestrian safety requirements. But despite this, the Fortwo is still a tiny car. At 106 inches long, it's more than 3 feet shorter than the new Mini.
Clever packaging makes the most of the space. Just one engine will be offered in the U.S. — a 1.0-liter, three-cylinder developing 71 horsepower and 68 pound-feet of torque — and it's mounted under the trunk floor, just in front of the rear axle. The steeply raked rear hatch provides a surprisingly spacious load bay. There are 7.8 cubic feet of cargo space, which gives it an edge over the Mini. Occupant space is also generous. The passenger seat is positioned slightly behind the driver seat to optimize shoulder room, and this 6-foot-4-inch scribe had no trouble getting comfortable.
Smart would like you to think that its new styling has 'grown up'. The exterior shape, while still instantly recognizable, is more angular and masculine than before. Inside, the cutesy curves of the original have been replaced by a blocky center console that's disappointingly conventional. At least the periscope-like rev counter and clock — trademark Smart features — have been retained.
The Tridion safety cell helps define the Smart's styling. (It's the two-tone element you can see in photographs.) This is a deliberate attempt to reassure customers that such a small car can be safe. Front and side airbags are standard, while the Electronic Stability Program (ESP) is designed to help drivers avoid an accident in the first place.
Fixing the problems
The old Smart was heavily criticized for its slow-witted steering and ponderous, jerky gearchange. Both elements have been updated for the new car. The automated manual gearbox now offers five speeds instead of six and the semiautomatic shifts are said to be smoother and faster than before. A fully automatic mode will also be available, and Smart is redesigning the gear selector to make it more intuitive for American customers. The steering is 10 percent more direct than the old car, according to Smart.
The longer wheelbase and wider track should also help improve both the Smart's handling and its notoriously harsh ride. With 71 hp on offer, it should prove capable of keeping up with the cut and thrust of city traffic, and with a top speed of 90 mph, it's highway-capable.
The U.S. pitch
In America, the Fortwo will be distributed by the United Auto Group, a U.S. dealer group owned by racing legend Roger Penske. It will start with the Pulse at around $11K, which will have steel rims and no air-conditioning. The more upmarket Passion will cost around $13K and add air, alloys and a transparent polycarbonate roof. Topping the range will be the $15K convertible, which boasts an electrically folding soft top that can be opened or closed at any speed.
"When people commute they're often alone, so why would they want to take on the cost of a four-seater vehicle?" asks Roger Penske. "The Smart will achieve over 40 mpg at a time when fuel costs are higher than I can ever remember. This is a metro car for a high-density market. The Smart will sell around the ownership experience, its value and the Mercedes name plate."
Penske is remaining tight-lipped about his volume aspirations. "In Canada, Smart sold 4,000 vehicles in its first year," he continues. "The U.S. market is 10 times bigger, but you cannot apply a simple multiple. We need to maintain a profit for the dealer and a profit for the OEM [the manufacturer]." Smart will initially launch with around 50 dealers. These will be a mix of existing Mercedes, United Auto Group and Chrysler/Jeep dealers, concentrated in high-density urban areas.
The responsibility of marketing the new car falls to David C. Schembri. "This is the only car in the non-luxury segment that has both rational and emotional appeal," he says. "Its appeal is not defined by age and income. We've been approached by everybody from college students to some of the most high-profile people in the United States." Neither Penske nor Shembri regard the Mini as a natural competitor. "A typical Mini will be $6,000-$7,000 more expensive," says Penske, "and the ownership costs are higher."
The marketing campaign will be led by a road show, which will take the Smart to urban centers. "The road show will allow people to see the cars, sit in the cars and drive the cars," says Shembri. "It's the best way to understand Smart. I call it 'Discovery marketing'." The 21-week road show will begin next spring and should reach 66,000 people.
More mature than before
Smart's President, Ulrich Walker, reckons that his business model is not dependent on U.S. success, but there can be no doubting that the new car has been developed with the world's largest market in mind. The new Fortwo is larger and more mature than before, and Smart will be hoping that it captures the imagination of environmentally friendly metrosexuals who fancy something different. Only time will tell if they're right.
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