Daimler Smart Fortwo Car in the US


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Case Details:

Case Code : BSTR315
Case Length : 12 Pages
Period : 2008-09
Pub Date : 2009
Teaching Note : Available
Organization : Daimler AG
Industry : Auto and Ancillaries
Countries : US

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Smart Fails to Impress

Although Smart cars were appreciated for their looks and performance, their sales remained lackluster. The car made losses in the late 1990s and continued to do so in the early 2000s. In February 2005, Reuters reported that the Smart car had made a loss of about Euro 600 million (US$ 771.6 million) in 2004...

Smart in the US

Initially Daimler did not have any plans to launch Smart Fortwo in the market, as it was not compatible with the US standards. But, in mid-2006, when the converted Smart Fortwo started selling in the US, the car met with an overwhelming response from consumers...

The Challenges

From January 2009, the Smart Fortwo BRABUS was available for sale in the US. The Smart Fortwo BRABUS was made to 'enhance appearance and handling' of the car. The car's body was lowered by 10 millimeters to improve the handling of the car.

The car was powered by 61 cubic inches three-cylinder petrol engine. It had the capacity of producing an output of 70 hp (52 kW). It also had five-speed automated manual transmission...

Exhibits

Exhibit I: Smart Fortwo
Exhibit II: Smart Car Logo
Exhibit III: Product Range of Second Generation Smart Fortwo
Exhibit IV: Accessories of Smart Fortwo
Exhibit V: Top Ten Best Selling Small Car in US in August 2008
Exhibit VI: Competitors of Smart Fortwo


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