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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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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"The Smart Fortwo is a unique car that combines driving pleasure with lifestyle and exemplary fuel efficiency. The two-seater convinces customers worldwide, thanks to its outstanding safety features, the distinctive smart design, as well as top quality, reliability, and economy. The Smart Fortwo is a clever solution and fun to drive. Had we not invented it ten years ago, we would have to do so now."1

- Dieter Zetsche, CEO of Daimler AG and Head of Mercedes-Benz Cars, in July 2008.

Introduction

In January 2008, Germany based automobile company Daimler AG (Daimler)2 launched its second generation Smart Fortwo, a small car, in the United States (US). Equipped with modern technology, the Smart Fortwo offered consumers premium quality and high safety. The small size of the car was an advantage in the dense traffic in the US. The car was marketed as an eco-friendly vehicle, with low fuel consumption and corresponding low carbon dioxide (CO2) emissions.

The second generation car attracted the attention of the press and consumers alike. In 2008, 24,622 units of the Smart Fortwo car were sold in the US.

According to analysts, the fuel prices touching new highs during the first half of 2008 and the rise in eco-image-consciousness contributed to the increase in the sales of the car.

Daimler Smart Fortwo Car in the US - Next Page>>

1] C. Danielson, "10 Years of the Smart ForTwo: Compact Model Celebrates its Birthday,"http://www.emercedesbenz.com, July 07, 2008.

2] Daimler AG, a German automobile manufacturing company, was founded in 1926. It was originally called Daimler Benz AG. In 1998, it merged with US-based Chrysler Corporation (Chrysler) and became DaimlerChrysler AG. In August 2007, the company sold Chrysler to a private equity group, Cerberus Capital Management. In October 2007, the company was renamed Daimler AG.


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