Smart to Be Available in Canada Two Years Before U.S.
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Smart to be Smallest Subcompact Available
Mercedes-Benz Canada took the opportunity at the Canadian International Auto Show in Toronto to announce that it will begin selling its 2005 smart fortwo coupe and cabrio cdi diesel models in the early fall 2004, beating the brands introduction to the U.S. by two years.
Having started in Europe in 1998, the Mercedes microcar division is now available in more than in 31 countries throughout the world, with the U.S. and Canada being two of its final target markets.
The smart brand (yes the lower case spelling is intentional), will be sold through the Mercedes-Benz dealer network in North America, a very different approach to rival BMW that chose to market its Mini division through stand-alone dealers. This could pose unique challenges to the Mercedes-Benz retail division, depending on how they choose to separate the two very different buying experiences and distinct clientele.
After all, the smart fortwo and Mercedes-Benz S Class are the size equivalent of a dinghy and a luxury yacht, with equally comparable price diversity. The base coupe will begin around CAD$16,000 (USD$12,154) while the bottom-dollar cabrio at under CAD$20,000 (USD$15,190). Comparatively, the S Class starts at $73,600 and the luxury marques least expensive convertible at $51,400.
Despite its diminutive size, the smart coupe and cabrio deliver Mercedes-like standard safety features, starting with ESP (electronic stability program), Brake Assist and ABS. In its report the automaker added that the car “performed brilliantly in all of its safety tests.”
While the smart models offer high-end standard features and their price points low for a Mercedes-Benz dealership, CAD$16,000 is quite high for the subcompact segment. Cars in the price range now include the award-winning Mazda3, and just about every other entry-level compact - a much larger and more performance oriented segment than smart is targeting. With that in mind, Toyota, Hyundai and Kia offer cars closer to the smarts size that also deliver better performance with pricing starting about CAD$3,000 (USD$2,279) less - albeit with fewer standard features and less fuel efficiency.
Mercedes-Benz Canada is not concerned though. The companys president and CEO, Marcus Breitschwerdt commented, “We decided to launch the current generation of fortwo smarts in Canada in response to strong consumer demand. Based on the success of the fortwo models around the world, it was the consensus that there is an unequivocal need for this type of intelligent, fuel efficient mobility in Canada.” He added, “The advanced common rail diesel cdi technology lends itself perfectly to the demands of todays sophisticated driver who is looking for clean energy, performance and fuel economy. smart will become an integral part of our product and brand portfolio, and we will expand and complete the smart line up in the coming years with additional models including an SUV.”
With the smart brand arriving in Canada soon, and other brands considering following Toyotas recent lead down market, the automakers Canadian division introduced the subcompact Echo Hatchback (same as European Yaris) late last year, the economy end of the market is heating up. smart, however, will be the only brand retailing microcars, which are considerably smaller than even Toyotas Echo Hatchback.
Is there a market for subcompacts and microcars in the U.S.? That will remain to be seen. The forfour sedan and formore SUV scheduled to arrive in 2006 are both diminutive compared to anything else currently available. Their success will determine if something smaller will be part of smarts U.S. initiative, or if any rival automakers will consider bringing subcompacts or microcars to the American market.
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