The Smart Car Essay Example
The Smart Car Essay Example

The Smart Car Essay Example

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  • Pages: 10 (2567 words)
  • Published: December 4, 2017
  • Type: Case Study
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This report's objective is to furnish consumers with details regarding the imminent launch of a new car in the following year.

With the increasing cost of gasoline, individuals are seeking a convenient means of transportation. The smart car could potentially be the solution, but its true advantages must be comprehended by consumers. Despite the originally projected sales of 20,000-25,000 units, there have already been 31,000 deposits made to reserve this car, surpassing expectations. Numerous companies intend to lease these vehicles specifically for quick errands.

The history of the Smart Car starts with Swatch, a watch manufacturer. In the early 1990’s, the inventor of Swatch, Nicolas Hayek, approached Mercedes Benz with an idea for an “ultra-urban” car. It is also considered to be a much safer car compared to other hybrids as it has

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a Tridion stability cell that is almost indestructible and braking systems and technology commonly found in high-end luxury cars, which gives it the potential to make an impact in the USA. However, the price is the only obstacle it faces. Other hybrids are available at a lower cost and with more space. In order to prove itself as the better option, the Smart Car needs to demonstrate superior accommodation. The final outcome of this situation can only be determined with time, and it is crucial for consumers to have a thorough understanding of their options.

During the joint venture, Swatch decided to withdraw from the agreement, resulting in Mercedes Benz taking over all of the plans. (Weaver, www. edmuds. com) In 1994, development for the full concept commenced, resulting in the introduction of four models: the City Coupe (a two-seater), followed by th

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Roadster and the Roadster Coupe, and lastly the for Four.

Unfortunately, sales were not satisfactory for all models except the Four, resulting in the discontinuation of the other models. The Four served as the foundation for today's smart styles offered by Mercedes Benz, which is now owned by Daimler AG Company. In addition to the Two, three more Smart Car styles have been introduced: Pure, Passion, and Passion Cabriolet. The Two made its debut at the Frankfurt Motor Show in 1997 and received significant media attention during that event. As a result of the overwhelming success of the auto show, Smart Car became a wholly-owned subsidiary of Daimler-Benz just one year later. Since January 2008, Penske Automotive has been serving as the primary distributor of Smart Car in the United States. Initial sales projections estimated that 20,000-25,000 units would be sold within the car's first year; however, those numbers have already been exceeded.

Customers can secure a Smart Car before its release by making a deposit of $99. Currently, there have been 31,000 deposits made. However, individuals in sales or business roles with significant driving responsibilities are not required to make a deposit. The Smart Car is best suited for short distances and urban driving.

Potential buyers have three models to choose from. The base price for the Pure model is $11,000. This price includes a five-speed automatic manual transmission with manual or automatic mode availability. The Pure model also features a central remote locking system, a two-spoke leather steering wheel, and a radio-ready console. Additional options available include air conditioning, power windows, and alloy wheels. For a higher level of features, buyers can opt for the Passion

model, which is priced at approximately $13,000.

The Pure model includes all options and features listed above, along with a panorama roof, alloy wheels, air condition with climate controls, a three-spoke sports steering wheel with shift paddles, power windows with electric and heated side mirrors, and an AM/FM stereo complete with a compact disc player. Priced at $15,000 in the United States, the top of the line Passion Cabriolet model offers upgraded radio and sound system that is MP3 compatible and includes an in-dash six CD player. The main distinction between the Passion Cabriolet and regular Passion models lies in the soft top roof which has a heated adjustable rear glass window allowing for height adjustment while driving. All models are available in white, blue, yellow, red black or grey colors. Furthermore, leather interior options can be chosen.

The impact of the smart car on consumers and the industry is evident, as it has the potential to significantly affect oil companies. Should this car gain popularity among consumers, it could disrupt forecasts of increasing oil prices due to reduced demand, especially considering the current influence of gas prices on individuals. Unquestionably, consumers would profit from this remarkable car's fuel efficiency, achieving 46 miles per gallon in urban areas and 68 miles per gallon on highways.

The decrease in gas prices due to reduced demand can benefit consumers and the hybrid car market. This presents a positive outcome with lower gas prices and the availability of fuel-efficient vehicles. However, this may not be significant in the US, where rising gas prices are an ongoing concern. Still, it may not play a decisive role in this situation. In Europe,

the Smart car is priced at 11,000-16,000. When gradually introduced to the US market in 2008, its initial price will be 32,000.

The smart car may not be as attractive for a hybrid option compared to the Toyota Prius, which is $10,000 cheaper. This emphasizes competition rather than effectively marketing the vehicle. While many Americans desire fuel efficiency, they also consider factors such as size when choosing a vehicle. The smart car only accommodates two people, unlike other hybrids that are similar in capacity to regular cars. So why would someone choose a smart car? One possible reason is the vehicle's safety. It has a reinforced safety cell called Tridion that surrounds the driver and passenger, along with bumpers, airbags, and antilock brakes designed to absorb impact and remain intact. Additionally, the smaller size of the smart car makes it more maneuverable and helps avoid accidents.

Smart cars equipped with manual transmission offer advanced braking and stability technology that is usually exclusive to high-end luxury vehicles. Even while driving on inclines, the brakes stay engaged momentarily, providing enough time for foot adjustment. Demonstrations have showcased the impressive resilience of the Tridion, which remains mostly intact even after a collision at 70mph. Nevertheless, it is important to mention that accidents surpassing 50mph often lead to injuries as our bodies are not designed to endure such forceful impact.

The Smart Car has an opportunity in today's changing market due to increasing concern about global warming and individuals prioritizing making a positive impact on the environment. As several automobile companies introduce more environmentally friendly vehicles, the Smart Car is acknowledged as one of the most sustainable options. According to Smart

(development, smartusa), Daimler Chrysler guarantees that their Smart Car adheres to rigorous company standards.

Although the guidelines followed by the company were not mentioned specifically, there are various environmentally friendly aspects of the Smart Car. The car is powdered instead of painted during production, which reduces energy usage by 40% compared to normal painting procedures. Additionally, this method produces zero solvent emissions and does not require the use of water (Recycling, pg. 1).

Discussing the components used in the vehicle itself and their eco-friendly nature, it is evident that the car is more environmentally friendly compared to other vehicles. According to The Montreal Gazette (2007), the Smart Car avoids using energy-consuming and expensive materials like magnesium, as well as excludes harmful substances such as lead, chromium, and mercury from its production process from the beginning (pg.E9). The company continuously engages in research and development to explore new production methods and materials that are recyclable and sustainable, ultimately better for the environment. For instance, they opt for 100% recyclable synthetics in the production of items like wheel coverings and dashboards" (recycling, smartusa, n. d. , pg.1).

To address the decline of non-renewable resources, it is crucial for us to find alternative manufacturing techniques and recyclable materials. The concept of environmental sustainability has prompted several car makers to enhance their attributes and parts in order to be more eco-friendly. Honda and Toyota, with their Civic Hybrid and Prius models respectively, appear to be Smart's primary rivals. According to the U.S. Department of Energy (unknown), the fuel efficiency of the Honda Civic Hybrid reaches approximately 49mpg and 51mpg in urban and highway conditions.

This is in contrast to Smart's approximate fuel efficiency

of 46.3mpg and 68.9mpg for city and highway miles respectively. Furthermore, the Honda emits 4.4 tons of greenhouse gases each year. Despite the Smart having higher MPG, there are distinct differences between the two vehicles. The Civic Hybrid notably surpasses the Smart in size.

The Smart for two's small size limits its capacity for carrying families and groceries. Unlike larger vehicles, it can only accommodate a few grocery bags in its back. This is a disadvantage for Smart because families often need a vehicle that can hold more items such as sports equipment and shopping bags. The Toyota Prius is another competitor to Smart, offering a slightly higher fuel efficiency than the Honda Hybrid. With 60mpg and 51mpg for city and highway respectively, the Prius comes closer to the Smart's efficiency. Additionally, the Prius emits only 3.4 tons of greenhouse gases annually, making it exceptionally low compared to other midsize vehicles (U).

According to the U.S. Department of Energy (unknown, pg. 1), although the Smart car is highly eco-friendly, many may question whether it is worth investing in a small car instead of a midsize car that offers more space and can accommodate more passengers while still having a similar environmental impact. However, this question will soon be resolved as Smartusa plans to introduce Smart Cars in the United States in the near future.

There is a belief among experts that Smart is not wise to try and sell its eco-friendly cars in the United States due to the many existing options. Smart Car did not plan on advertising in 2008, but it did sponsor Live Earth, which was viewed by millions internationally. However, Penske used tractor-trailers to

showcase the Smart Cars and other displays on a 50-city tour, allowing potential buyers to test drive the cars. A few Smart Cars also made appearances at popular locations like Starbucks and Whole Foods. The Smart Car has received criticism for its size, price, and emissions testing, particularly within the United States.

According to some critics, Smart overlooked the American market, particularly the various regions of the U.S. where people drive different types of vehicles. John LeBlanc (2006) points out that Smart failed to consider the high demand for SUVs and pick-up trucks in the southern region (pg. DT17). While the small size and maneuverability of the car would make it successful in urban areas with limited space, it may not meet the preferences of drivers in other regions.

The Smart car has faced criticism on various fronts. One concern is its size, which allows it to fit into small parking spaces and accommodate more cars, but this relies on widespread acceptance. Another issue is emissions, particularly in states with stricter testing regulations such as those in the Northeast. According to LeBlanc (2007), certain states like California may not pass the diesel engine of the for two model in emissions testing, posing challenges for Smart dealerships (pg. DT17). Additionally, drawbacks mentioned by Paul Gover from the Daily Telegraph (2006) include limited storage space and a noisy gear-changing process in the Smart car (pg.11). Price also contributes to criticism, with estimates ranging from $15,000 to $35,000 for different models upon its introduction in the United States. In comparison, other vehicles like Honda and Toyota offer similar or better features at a more competitive price point.

The Smart Car's safety

is noteworthy, especially considering its compact size. Safety concerns may arise when driving a small car in a country where large vehicles like tractor trailers and SUVs are prevalent. Moreover, critics frequently inquire about the comfort of taller individuals within the vehicle.

The significance of whether or not the Smart Car should be introduced in the U.S. market, taking into account its environmental and economic benefits as well as its status symbol appeal, is growing. It is essential to possess a thorough understanding of the facts regarding this vehicle.

When it comes to new products like the IPod or Iphone, there are advantages and disadvantages to consider before making a purchase. The Smart car is no exception, offering something new and different to the market. It is important to gather information before deciding whether or not to buy it. Although the Smart car is a bigger investment compared to an IPod, the same mindset applies when a new product enters the American market.

The initial urge may be to buy it simply because it's trendy, but hasty decisions should be avoided when buying a car. Our aim is to provide consumers with comprehensive information about the Smart car so they can make an informed decision. We remain neutral and unbiased, ensuring potential buyers are well-informed before making such a significant decision. We cover various aspects of the Smart car, including both positive and negative effects on the U.S. market.

The purpose of this presentation is to provide readers with a comprehensive understanding of the Smart car in the U.S. market, covering various aspects such as the economy and environment. By gaining this knowledge, readers can make an informed decision

on whether or not to invest in a Smart car when it becomes available in 2008.

  1. On May 9, 2007, The Gazette (Montreal) published an article titled "Smart Fortwo: An Eco-Friendly Vehicle." This information is part of a CanWest special feature called "DRIVING GREEN: A CANWEST SPECIAL INFORMATION FEATURE." It was published on May 9, 2007 and has a word count of 520. The source is The Gazette, but the author remains unknown.
  2. Another article from The Gazette (Montreal), also titled "Smart Fortwo: An Eco-Friendly Vehicle," was published on page E9. This article can be found in the Lexis Nexis database and was retrieved on November 7, 2007. It serves as the second source for reference purposes.


http://www.smartusa.com/smart-fortwo-ecology-recycling.aspx

  • Unknown.N. d. Recycling, Future Focused Recycling.Retrieved November 7, 2007.

Smart USA distributor, LLC. Website: http://www. smartusa. com/smart-fortwo-ecology-development.aspx

  • http://www. fueleconomy. gov/feg/hybrid_sbs_cars
  • shtml Unknown. N.d. Hybrid Cars. Retrieved November 8, 2007.

  • U. S Department of Energy. Website: http://www.fueleconomy.
  • gov/feg/hybrid_sbs_cars.shtml 4. Why Smart was not so smart in North America: The little car should have been the brand of the new millennium National Post (f/k/a The Financial Post) (Canada), March 31, 2006.

  • Friday, SPECIAL REPORT: DRIVING; The Crank; Pg.DT17, 557 words, John LeBlanc, CanWest News Service.
  • Why Smart was not so smart in North America: The little car should have been the brand of the new millennium.
  • National Post (Canada), pg. DT17. Retrieved November 10, 2007, from Lexis Nexis database.

  • Not smart enough The Daily Telegraph, March 31, 2006 Friday, FEATURES; Carsguide / Cars Guide / Motoring;
  • Pg. 11, 566 words, PAUL GOVER Gover, Paul.

    (2006, March 31). Not smart enough. The Daily Telegraph, p. 11.

  • Retrieved November 10, 2007, from Lexis Nexis database. 6.
  • www.smartusa.com

  • Unknown.N. d. Development, It’s All About Smart Alternatives. Retrieved November 10, 2007.
  • Smart USA distributor, LLC. Website: http://www.
  • smartusa.com/smart-fortwo-ecology-development.aspx 7. www.SmartCarUSA.com 8.

    Miller, Stever. Advanced Buzz had Drivers in US Anxious to Get Smart. Brandweek. October 1, 2007. Vol.

    48, Issue 25, Pg. 6-7.

  • Weaver, Allister. DaimlerChrysler's Car is Coming to America. www.
  • edmunds.com/insideline/do/feature/article_id=117630 November, 21, 2006 10.

    Taylor III, Alex. Wheeler Dealer. Fortune Magazine. October 15, 2007, Vol.156, Issue 8, pg 53-57.

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