smart Puts formore Crossover on Hold
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DaimlerChrysler Division Reconsidering Strategy with European Sales Sagging
Its not unusual to hear about automobile manufacturers entering surprise vehicles for global car shows, but the complete opposite is true for brands pulling announced models out of these events.
According to Automotive News Europe, DaimlerChrysler AG has put development of its smart formore (lowercase intentional) crossover SUV on hold. The formore, based on the forfour five-door hatchback, was the vehicle that smart was going to use to usher the brand name into the United States in 2006.
But sales are extremely slow in Europe (see news archive for Nov 25, 2004: smart May Be Riding High in Canada but Sales Suffering in Europe), where the microcar brand should be doing best, which may have led to the smarts hesitation in debuting the new SUV.
Heinz Gottwick, director of communication at smart, confirmed the delay, saying that CEO Ulrich Walker is reviewing and reevaluating the strategy for smarts products. Suppliers were told that there would be a three-month pause for further vehicle development. Some forms of testing are said to still be green-lighted.
As a result, the formore, which was set to make its world debut at this years North American International Auto Show, will be absent. smart will still have a booth at the show, in order to spark interest, attract showgoers and recruit dealers when the brand decides to enter the U.S. market.
The formore was to be the cornerstone of smarts product lineup, as it was specifically designed for the SUV-crazy North American market. Aside from dent-resistant, customizable body panels, a practical and clever interior, plus the niche brand image, the formore would have offered extra ground clearance, and the possibility of all-wheel drive - a first for the smart brand.
Should the formore project be terminated, the brand could still be launched in the United States, said Gottwick. In its first few introductory months in Canada, the tiny fortwo cdi diesel, smarts only model there, has become the hot item on car buyers lists everywhere. Its tiny size and super-economical engine makes it an ideal commuters vehicle. It has sold well, despite sagging sales in its home market of Europe.
Theres no reason why smart couldnt proceed in the United States with the fortwo and the rest of its current range. Yes, even the diminutive fortwo. The Environmental Protection Agency (EPA) gave electric vehicle maker Zap the green light to sell the two-seater throughout the U.S. earlier this month, and less than a week later the company announced $2.9 million in orders from dealers who want to sell the microcar.
Altogether Zap plans on signing up 150 dealers next year alone, an ambitious undertaking considering DaimlerChrysler may want to market its smallest car through its own dealership network when the smart brand enters the U.S., especially if Zap is successful first.
Incidentally, Zap doesnt buy its fortwos directly from DaimlerChrysler, but rather purchases through Smart-Auto LLC, which buys the cars from dealerships in Europe and then ships them to America after modifying them to meet U.S. standards.
With the formore SUV potentially out of the picture, the brands lightweight, frills-free roadster could also be popular with buyers who are looking for a fuel-efficient, minimalist mid-engined sportster, while many urbanites could easily be interested in the practical, charismatic forfour.
With the brand losing money globally, however, it will remain to be seen if smart will bring its entire range to North America, despite the vastness of the market and the need of vehicular diversity.
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