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smart May Be Riding High in Canada but Sales Suffering in Europe

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Khatir Soltani

Campbell may be right, and if he proves a business case for the fortwo in the U.S. he may cause DaimlerChrysler to reconsider its initial plan.

The European small-car segment has been on a backward slide since 2001, dropping by about 500,000 units to approximately 3.8 million vehicles. (Photo: Shawn Pisio, Canadian Auto Press)

And it would seem that any incremental sales would help smart right now, especially if a third party such as ZAP is fronting the sales and marketing costs. While minicar sales seem like pure potential in the U.S. and Canada, the European small-car segment has been on a backward slide since 2001, dropping by about 500,000 units to approximately 3.8 million vehicles. Why the lack of interest? It's more about Europe's love affair with new compact minivans, dubbed mini-MPVs across the Atlantic. Mazda is quite certain that we'll also fall for these fuel and space efficient people haulers, and therefore will be offering its 6-occupant Mazda5 next spring.

Europe's love affair with new compact minivans, dubbed mini-MPVs across the Atlantic, has seriously cut into the small-car market. (Photo: Shawn Pisio, Canadian Auto Press)

But smart has no such vehicle even on the drawing board, despite that a mini-MPV seemingly would be ideal for the economy brand. For the time being DCX is asking more of its European franchises to sell the smart brand, hopefully increasing visibility of the tiny cars and therefore improving sales.

Another solution would be to develop more new models under strategic partnership deals, such as the smart forfour/Mitsubishi Colt production facility in the Netherlands. This would lower development and production costs.

Khatir Soltani
Khatir Soltani
Automotive expert
  • Over 6 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada