Smarts in U.S. for DaimlerChrysler
Bradford Wernle Automotive News / June 28, 2006 - 7:00 am
AUBURN HILLS MI -- DaimlerChrysler AG will bring the next-generation, two-seat Smart ForTwo minicar to the United States in the first quarter of 2008 and will use entrepreneur Roger Penske to create a network to sell and service the vehicles.Penske is CEO of retail chain UnitedAuto Group Inc., which operates 173 new-car franchises in 20 states.UnitedAuto Group, of Bloomfield Hills, Mich., ranks No. 2 on the Automotive News list of the top 100 dealership groups in the United States. The company sold 178,157 new vehicles last year.
Penske says he plans to appoint 30 to 50 dealers initially. He said he will consider all dealer candidates, not just dealers within the UnitedAuto chain. Penske says he is optimistic about Smart’s U.S. sales prospects because the brand has done well in Canada. He noted that Smart’s first-year sales target in Canada was 1,500 units, but sales totaled 4,000 units.
Smart’s entry into the United States represents a homecoming of sorts for Dave Schembri, who will run the Smart chain for Penske. Schembri, 53, is the former Mercedes-Benz executive who was supposed to run Smart’s U.S. operations for the German automaker.But Smart USA was dismantled after Mercedes canceled plans to sell the brand in the United States. Subsequently, Schembri left Mercedes to head sales and marketing at Mitsubishi Motors North America. He resigned his Mitsubishi job in February as the Japanese automaker’s sales plunged.Schembri says Penske contacted him the day he left Mitsubishi. He says he has been working on the Smart project ever since. “We will be a full-service distributor -- sales, marketing, warranty, parts and service,” Schembri said.
Smart is sold in 36 countries. Italy is the brand’s biggest market, with annual sales of 40,000 units.In the U.S., DaimlerChrysler will put added sales emphasis on urban markets on the West and East coasts.The automaker originally planned to launch the Smart brand in the United States with a new, four-seat SUV. But the plan collapsed as mounting Smart losses forced DaimlerChrysler to cut costs.Reuters contributed to this report
AUBURN HILLS MI -- DaimlerChrysler AG will bring the next-generation, two-seat Smart ForTwo minicar to the United States in the first quarter of 2008 and will use entrepreneur Roger Penske to create a network to sell and service the vehicles.Penske is CEO of retail chain UnitedAuto Group Inc., which operates 173 new-car franchises in 20 states.UnitedAuto Group, of Bloomfield Hills, Mich., ranks No. 2 on the Automotive News list of the top 100 dealership groups in the United States. The company sold 178,157 new vehicles last year.
Penske says he plans to appoint 30 to 50 dealers initially. He said he will consider all dealer candidates, not just dealers within the UnitedAuto chain. Penske says he is optimistic about Smart’s U.S. sales prospects because the brand has done well in Canada. He noted that Smart’s first-year sales target in Canada was 1,500 units, but sales totaled 4,000 units.
Smart’s entry into the United States represents a homecoming of sorts for Dave Schembri, who will run the Smart chain for Penske. Schembri, 53, is the former Mercedes-Benz executive who was supposed to run Smart’s U.S. operations for the German automaker.But Smart USA was dismantled after Mercedes canceled plans to sell the brand in the United States. Subsequently, Schembri left Mercedes to head sales and marketing at Mitsubishi Motors North America. He resigned his Mitsubishi job in February as the Japanese automaker’s sales plunged.Schembri says Penske contacted him the day he left Mitsubishi. He says he has been working on the Smart project ever since. “We will be a full-service distributor -- sales, marketing, warranty, parts and service,” Schembri said.
Smart is sold in 36 countries. Italy is the brand’s biggest market, with annual sales of 40,000 units.In the U.S., DaimlerChrysler will put added sales emphasis on urban markets on the West and East coasts.The automaker originally planned to launch the Smart brand in the United States with a new, four-seat SUV. But the plan collapsed as mounting Smart losses forced DaimlerChrysler to cut costs.Reuters contributed to this report
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