Why Isn't DaimlerChrysler Smart?

April 17, 2005 – Vol.10 No.4

WHY ISN’T DAIMLERCHRYSLER SMART?

Ford, GM and DaimlerChrysler, once the Big Three auto manufacturers, are all in financial hot water. The reason - in part - is too many fuel hungry vehicles in the lucrative U.S. market and too few fuel-efficient ones. Ford at least has the its best selling Escape Hybrid. GM has nothing. Yet while DaimlerChrysler has its near-60-mile-per-gallon Smart cars, the company is dragging its feet to launch them here.

If ZAP’s claims are true of over $750 million in pending purchase orders for converted-to-US-spec Smart ForTwo coupes, isn’t DaimlerChrysler watching? Don’t they read the news? Don’t they see that there could be a solid market here for the cute, ultra-fuel-efficient cars?

ZAP, the California-based retailer of electric and fuel efficient vehicles, will likely struggle to meet the demand for so many cars. But DaimlerChrysler could easily and quickly launch into fast-paced program to sell the cars here with full warranty protection, dealer servicing and much lower prices than ZAP would demand (rumored to be around $23,000.)

The only news from DaimlerChrysler is that they plan to build a small car in China and they will restructure the now money-losing Smart division. Rumor has it that the car built in China will be the next generation Smart (hopefully just as good as the first).

ZAP has recently received full approval from the U.S. government to sell Smart ForTwos in 45 states but will be forced to buy the cars from dealers in Europe instead directly from Smart. Visit ZAP at http://www.zapworld.com/ ,Smart at http://www.smart.com/ .