Smart Dealerships closing
I've been hearing a lot about dealerships closing all across the USA, and I have to say I'm quite concerned. Sales are WAY down, to the point where dealers can't cover their overhead.
Why hasn't Smart USA launched an advertising campaign? Don't they realize that the general American consumer expects to get a great deal of their consumer information from commercials? Especially when it comes to cars? One of the reasons that Honda, Chevy, Ford, Mercedes, BMW and Hyundai are successful is due to their aggressive advertising on TV and radio. Watch a sporting event on television and you're inundated with car ads at every commercial break.
I had to call my insurance company for a claim recently and the customer service representative had to Google "Smart Car" while we were on the phone because she didn't know what it was! And she works for a major auto insurance company!!
I think Smart USA has seriously dropped the ball and have sabotaged their own success in the USA. It would be very disappointing for myself and all the other Smart owners out there if the brand went defunct in the USA and we found our extended warranties are no longer worth anything.
Thoughts?
Why hasn't Smart USA launched an advertising campaign? Don't they realize that the general American consumer expects to get a great deal of their consumer information from commercials? Especially when it comes to cars? One of the reasons that Honda, Chevy, Ford, Mercedes, BMW and Hyundai are successful is due to their aggressive advertising on TV and radio. Watch a sporting event on television and you're inundated with car ads at every commercial break.
I had to call my insurance company for a claim recently and the customer service representative had to Google "Smart Car" while we were on the phone because she didn't know what it was! And she works for a major auto insurance company!!
I think Smart USA has seriously dropped the ball and have sabotaged their own success in the USA. It would be very disappointing for myself and all the other Smart owners out there if the brand went defunct in the USA and we found our extended warranties are no longer worth anything.
Thoughts?
Tags: advertising, closures, dealerships
Views: 173
Replies to This Discussion
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Permalink Reply by jwight on -
I'll fully admit I don't have an MBA and have never worked in a for profit environment, but my understanding is most companies prefer to see the line on their sales chart going up, not down.
Ryan said:I'm sorry.... but how exactly is this "grim news" that they sold 278 cars in a month? I'd say they seem to be on the right track, especially considering that on that same exact statistics sheet, it says that in the previous year, they only sold about 1,776. So you figure in the first month of this year.... they already sold what..... just shy of 1/6 of the total number of cars sold last year? Doesn't sound too grim to me.
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Permalink Reply by Ken Wagar on -
Ryan said:I'm sorry.... but how exactly is this "grim news" that they sold 278 cars in a month? I'd say they seem to be on the right track, especially considering that on that same exact statistics sheet, it says that in the previous year, they only sold about 1,776. So you figure in the first month of this year.... they already sold what..... just shy of 1/6 of the total number of cars sold last year? Doesn't sound too grim to me.
The 1776 for last year was for last January so this is indeed grim news. An average of less than 4 cars per dealership with monthly overhead at our dealer of $22,000 per month!!!!
The numbers make the Brand and the concept unsustainable. Changes need to occur quickly or many more dealerships will go dark and the future of smart in the USA is clearly challenged. Unfortunately this does not help the public impression of the cars either.
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Permalink Reply by Julie O'Malley on -
278 NATIONWIDE ??? That's pitiful, and not enough for dealerships to cover their overhead. My local dealership told me that in order to just break even they need to sell 10 cars a month. In January, they sold TWO.
Ken Wagar said:Ryan said:I'm sorry.... but how exactly is this "grim news" that they sold 278 cars in a month? .
The 1776 for last year was for last January so this is indeed grim news. An average of less than 4 cars per dealership with monthly overhead at our dealer of $22,000 per month!!!!
The numbers make the Brand and the concept unsustainable. Changes need to occur quickly or many more dealerships will go dark and the future of smart in the USA is clearly challenged. Unfortunately this does not help the public impression of the cars either.
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Permalink Reply by Jan in West U on -
Speaking of low sales and advertisement, smart car was not represented at the Houston Car Show this year. I was shocked and disappointed.
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Permalink Reply by Julie O'Malley on
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AND HERE IT IS...
"Sales of the Smart Fortwo Plummet" (LINK)
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Permalink Reply by George Oller on -
Smart needs to start a major ad campaign right away. The owner-enthusiasts can only do so much by word of mouth. VW did a stellar ad campaign many years ago with the first Beetle. I just hope it's not too late to let everyone know what we already know. The smart is certainly not for everyone, but it's certainly for more than 40,000 owners!!
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Permalink Reply by Ryan on -
And yet another article with someone who seems to have been having trouble with his smart. Never achieved 36mpg? How is that possible? And yes.... car sales are bad.... but not just for Smart. the latter half of 2008 was tough for every car company, and without really any advertising, it's even tougher for Smart. I think it'd be quite a nice idea if they had somewhat localized ad campaigns. Rather than having attacking ads like Chevy (underhanded if you ask me), or ads that feature people who seem to just be paid actors.... have clips of people in different areas ACTUALLY TALKING about how much they like the car. Pretty sure that'd do a lot more for them than the stupid crap Chevy is pulling.
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Permalink Reply by Julie O'Malley on
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A very wise ad-guy once said: "If you don't identify your brand, others will do it for you."
George said:Smart needs to start a major ad campaign right away. The owner-enthusiasts can only do so much by word of mouth. VW did a stellar ad campaign many years ago with the first Beetle. I just hope it's not too late to let everyone know what we already know. The smart is certainly not for everyone, but it's certainly for more than 40,000 owners!!
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Permalink Reply by Julie O'Malley on
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I'm hoping that Penske and Smart USA will help out the faltering dealerships that are left. After all, it's not THEIR fault that Smart sales are down. Can they get some kind of assistance from the home office until the advertising campaign (which we all really want to see... SOON) starts generating sales?
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Permalink Reply by [ART4-1] on -
An advertising campaign would need to be very clever in order to identify the right market and reach out them. The car appeals to me for reasons that don't get captured by mainstream car advertisements. I like its smallness, the satisfying feeling of driving the right size for driving alone. In some sense it is has a unique niche somewhere between a small car and a motorcycle. A car that seems ideal for the city but begs to get out on the open road.
I would be afraid that a mainstream car advertising campaign may focus on the wrong things: such as its mileage (its mileage really does vary!). For me, the "open your mind" motto was the most attractive. There are more than a few people for whom this car can be very satisfying for all of their driving needs. The key word is satisfying -- as in just good enough, why ask for more?
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Permalink Reply by Julie O'Malley on
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Here's my idea of a Smart ad: (all of these would be accompanied by appropriate photos and moving images of the car, including slow-mo crash tests)
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"Let's talk about parking. The Smart car comfortably fits into a parking spot that every other car in America would have to pass up. (show Mini Cooper trying to fit and then leaving, then the Smart pulling into the spot) That's pretty Smart.
How about gas mileage? EPA ratings put the Smart Passion Coupe at 33mpg city, 41 highway. But many real-world Smart drivers are reporting mileage up to 15-20% higher. (show Smart car on lonely highway passing gas station without stopping) That's really Smart.
The Smart is friendly, too. People friendly... I mean, look at it. You can't help but smile. (show 'face shot' of Smart's front grill) But it's environmentally friendly too. For example, only water-soluble paints are used in Smart's production. The body panels with molded-in color are fully recyclable. So long after your Smart is retired from active duty, it's still useful (show new plastic bottles on an assembly line) . That's Earth Smart.
And Smarts are safe; (all through this segment, show footage of driving tests and crash tests, as well as the 'naked' Smart with Tridion shell exposed) With anti-lock braking and automatic cornering brake control systems to keep stopping under control. Acceleration Skid Control (ASC) and Engine Torque Control (ETC) which are designed to help the Smart ForTwo move forward on slippery surfaces. All Smart ForTwos are also equipped with a standard package of passive safety features, like full driver and passenger front airbags and side airbags for head and thorax protection. The steering column will collapse in the event of a serious front-end collision. But Smart's core design philosophy is focused on something called the Tridion Safety Cell. Much like a nut is protected by its hard outside shell, the Smart ForTwo's occupants are protected by a steel housing that combines longitudinal and transverse members that displace impact forces over a large area of the car. So your Smart keeps you safe, even when the other drivers out there aren't.
Smarts are comfortable, too. With plenty of headroom and legroom, you'll never feel cramped or packed in. (show obviously very tall man getting in car and looking pleasantly surprised) Really. But then you'll have to come in and try one to feel it for yourself.
And -- the Smart is affordable. The Smart ForTwo pure coupe starts at about $11,990. (show father with teenage son looking at sticker and smiling) The sporty Passion at about $13,990. That's money Smart.
So be Smart. Come and take a test drive and find out about getting Smart. Because tomorrow morning when you and your briefcase are on your way to work, ask yourself this: What do you really need those other seven seats for, anyway? (show single businessman with briefcase getting into a ginormous SUV, watching a Smart drive by.
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Permalink Reply by fastturb on -
the SMARTAlecs Car Club of the Lehigh Valley will be meeting with the smartUSA Mid-Atlantic Regional Director again on February 14th. The meeting will be held at The America on Wheels Museum in Allentown, PA.
many of us bought smarts (some of us even 2) from the now CLOSED Devon, PA dealer.
A smart cruise to the "casinos" in Bethlehem, PA will follow. Even if we don't get good news from smartUSA maybe we will get lucky at the casino ...
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