Under Penske management, the Smart minicar brand sold fewer than 6,000 vehicles last year, capping a sales decline that led Mercedes to take back management duties for the brand. And, according to the new folks in charge of Smart, there’s only one real problem with the brand: awareness. Or, more precisely, lack thereof. We’ve heard this song before from Smart’s new GM, but now Ernst Lieb, boss of Mercedes U.S.A., is picking up the tune, telling Automotive News [sub] that

With the marketing activities that we’re going to have, we’ll see some positive momentum. The biggest problem the car has right now: Nobody knows it.

Which, of course, is nonsense. Nonsense that allows you to appear aware of the sales problem without acknowledging a single problem with the product itself, but nonsense none the less. And Smart’s not the only micro-car brand that’s reaching for it either, as Fiat-Chrysler marketing boss Olivier Francois has the exact same excuse for Fiat’s weak start, telling AdAge

I don’t think we have a car problem; people love the car. I think we have an awareness problem.

Are Americans incapable of seeing, recognizing or being aware of anything that weighs less than 3,000 lbs? Or is it possible that there are a few things wrong with the Smart and 500?
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At the Frankfurt Motor Show (13 – 25 September 2011), Daimler will show a bicycle. A lot of manufacturers have shown two-wheeled design studies at shows. This one will go on sale. In Frankfurt, you will see a “near-series version of the smart ebike,” as Daimler’s press release says. The ebike will be launched in the first half of 2012 and will initially be marketed by dealers in Europe and North America. (Read More…)

It will come as no surprise to regular TTAC readers when I say that Scion has had some sales issues lately. But instead of euthanizing the brand as some on TTAC have suggested, Toyota has decided to take a different route. Thankfully, rather than creating more me-too models based off of US-market Toyotas, the plan includes some JDM/Euro models and the much anticipated “Toyobaru “sports car. The first object of foreign desire landing stateside to start off Scion’s resurrection is the Toyota iQ micro-car. The iQ should be in showrooms across the country soon, but does Scion have the IQ to make a smarter Smart?

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With sales of its aging city car circling the toilet, Roger Penske’s Smart USA has reached a deal with Nissan to sell a Smart-branded version of a Nissan-developed four-door B-segment car, likely the Versa. Though Penske’s organization apparently pushed for and announced the deal, and the model will be exclusive to the US, the Detroit News calls the move “part of the growing cooperation between the Renault-Nissan Alliance and Daimler AG.” Penske says

If you exist outside the fast-paced world of the automotive branding community, you might believe that the point of car brands is to sell cars. Needless to say, you’d be wrong. The big buzzword around car brands, particularly the more niche and eco-friendly brands is “mobility.” As in “we must leverage our brand values to provide a broad-based mobility strategy for the cities of the future.” Or, to put it into layman’s terms, “screw cars, we gotta start building scooters.”

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Smart is such a nice little word. It has so many different meanings. So it’s fun to play with and show just how smart you really are. For example, I could have titled this post: Smart Makes Smart Car for Smart People with Smart Money. Or: Smart Makes Smart Car Move. Or even: Smart Makes Smart Marketing Moves. However, I´ll stick with the title as is since Smart is proving itself so smart in the Brazilian market. In more ways than one. One of the synonyms for Smart is “on the ball.” (Read More…)

Wired hit the proverbial nail on the proverbial head when it titled its recent review of the pure plug-in Smart ForTwo Electric Drive “Smart EV Would Be Smarter if It Were Cheaper.”

Well, it’s not. As a matter of fact, it’s insanely expensive. (Read More…)

Toyota is still smarting from a heavy decking it has received from Congress, the NHTSA, lawyers, and the press. Toyota’s answer? Let’s get SMART! (Read More…)

As analyst comments on the freshly-announced Renault-Nissan-Daimler deal come in [via Automotive News [sub]], a consensus seems to be building around the notion that the tie-up offers few real advantages to the three firms outside the real of small-car development. The financial impact and opportunities for luxury-segment component sharing are constrained by the deal’s structure, meaning the stock-swap and attendant hoopla are little more than window-dressing for the real project: developing compact and subcompact cars for tomorrow’s C02 standards. As Bertel noted, rumors of a Daimler-Renault tie-up have always centered around the Smart brand, and today Daimler’s Dieter Zetsche told Automotive News [sub] that

We could not have found a feasible basis alone for the next-generation Smart family… Of course, we could do a next-generation Smart alone, but we would lose a lot of money

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Yesterday, we wrote about how Dieter Zetsche needs to start earning his retirement. He took the suggestion to heart. Automobilemag.com has it that the long rumoured liaison between Daimler and Renault will finally bear fruits. Daimler and Renault will have baby twins! (Read More…)

Smart’s new President, former Saturn overseer/undertaker Jill Lajdziak, knows how the dying brand thing works. With Smart sales down a (barely) Chrysler-beating 41 percent on the year, the Penske-owned Smart USA is teaming up with Daimler Financial Services (Smart vehicles are produced by Daimler in Europe) for a good-old captive lease deal right out the old GM playbook. According to Automotive News [sub], Smart is offering

a 36-month lease for $169 a month, $999 down, a $595 acquisition fee and the first month’s payment due at the time of the lease.

That’s a lot more realistic than the the old deal they were offering ($3k down, $200/month) but we’re still talking about a 10k miles-per-year lease. On a car makes a Yaris seem luxurious, overpowered and confidence-inspiring. Incidentally, were you aware that the Smart ForTwo was first introduced way back in 1998? The more you know!

Next up in our impromptu series of car ads featuring spurious comparisons: the Smart as Supercar. Not buying it? Hey, it’s still better than comparing your car to a pair of socks.

Autocar reports that the next-generation of Smart city car is being co-developed by Daimler and Renault. The rear-engined platform is being described as “modular,” with variable wheelbase and track, and will underpin the next Smart ForTwo and ForFour as well as several Renaults. Initially Mercedes will provide three-pot engines with six-speed manual and seven-speed dual-clutch transmissions. Eventually, the two firms will develop a series of 1.8 liter engines to power the ForFour, as well as the new Mercedes A and B classes and future Renault Twingo, Clio, Modus, Mégane and Scenic models. Both firms plan EV and hybrid versions as well, although the firms have not decided which will lead development of these drivetrains… which can’t be a good sign for Tesla which has a Smart electrification contract with Daimler. Equally undecided is whether Nissan will get a version to match up with Toyota’s iQ. In any case, it’s become clear that what began as a unique-platformed, niche brand was going to have to change. By sharing costs, developing a viable four-seater on the same platform and offering advanced drivetrains, Daimler may just be able to pull Smart’s fat from the fire.

US sales of the not very Smart car have fallen off a cliff. The Financial Times reports that “Smart sold only 661 of its fortwo model in the US last month, more than two-thirds below October 2008 and the lowest for any month since the car made its debut in the US early last year.” Other analysts are blaming low fuel costs and the foolishness of US consumers who just don’t get the appeal of microcars. Not me, I blame the fact that the Smart car is an all around underwhelming vehicle which gives up too much capability in return for mediocre fuel economy. Note that the Smart brand is a failure in Europe as well. “Daimler’s decision to export Smart to the US was a critical part of its rescue plan for the brand. For all its pizzazz, the little car has been a financial millstone. Daimler came close to shutting down the brand in 2006, but opted instead for a €1bn ($1.5bn) restructuring aimed at making the business profitable by the end of 2007.” How anyone (let alone Roger Penske) thought a failed European microcar would be saved by exports to the US is beyond me. Smart’s new “Value Days” 1.9% financing promotion isn’t going to get the job done. Not even a Toyota-esque Saved By Zero campaign would do the trick.