Quote:
Originally Posted by Rob It is more than that Chris. The Smart project was doomed to failure because of the high cost of the product -- that is precisely why Swatch pulled out of the project. The Swatch car was the dream of Nicolas Hayek (founder of Swatch), he wanted to use the same formula for the Smart as had been used for Swatch watches -- unfortunately, he soon realized that Daimler Chrysler's cost were not going to make the thing viable ...and so he pulled out. Hayek is a very astute businessman -- Daimler Chrysler should have taken note of his concerns. |
Agreed. Good points.
However DCX is also at fault. The production process was expensive, yes, and the high pricetag of the car was to ensure that some sort of return was made on the investment.
So you have two problems here: an expensive production process and an expensive pricetag for a car made out of cheap plastics, questionable safety (small = unsafe, in the minds of many), poor standard equipment (radio and A/C are
optional) and no real fuel economy benefits compared to cars like smaller diesel Opel's or VW's.
However, I feel the new Smart can be capable of being successful if it is properly marketed, managed and equipped. You want to give buyers a feeling that they're getting something for their money. The Smart, as much as I personally dislike it, is an excellent city car. This should be exploited in the marketing campaigns etc. By now production costs should have been lowered, especially with the internal cleansing of the production process that went on at DCX a few months ago - and still is.