Smart Hunts for 50 to 60 Dealers

smart fortwo on assembly line in Germany

Washingto DC January 16, 2007; The AIADA newsletter reported that smart is pounding the pavement this month in search of developing its dealer network, with a target of obtaining 50 to 60 dealerships by May or June, reports Automotive News.

The maker of small cars plans to begin sales of its ForTwo model early next year. Priority will be given to DaimlerChrysler dealers who wouldn't have to build separate showrooms, according to Smart USA President David Schembri.

An ideal showroom size would have at least 2,000 square feet and a separate entrance, Schembri said. The company is requiring a dealer investment of about $300,000 apiece.

"We will not allow commingling of Smart with any non-DCX franchise," said President of UnitedAuto Group Roger Penske, the sole distributor of Smart vehicles in the U.S. Smart USA has invited about 400 dealers selected from more than 1,200 applicants, and all U.S. Mercedes-Benz dealers, to attend presentations starting this month in Las Vegas, Atlanta, Detroit and New York.

While he did not provide sales volume projections, Schembri predicts most U.S. Smart dealers will make a profit in the first or second year of operation on the sale of more than 200 vehicles annually.