Webster: Smart Fortwo Electric Drive Arriving 'A Year After' ICE Model

Now, if they could only address the "reason to exist" issue

@Lie2me Go to any European city and you will quickly figure out the Smart's reason to exist. The same reasons hold true in the US, provided you live in a city. As we know, the average American household owns more than 2 cars, so being an all-rounder isn't all that critical. Hated the transmission on the previous Smart, but I loved the non-power steering (base model only). I would consider getting one just to feel that direct connection to the front wheels and short wheelbase. I guess I can park it next to the shed... The new Smart is interesting. It has the smallest turning circle of any car, and it's available with a manual transmission (in Europe).

@heavy handle Smart is a money loser. Yes, they sell more of them in Europe, but not enough for prices high enough to turn a profit.

@heavy handle Forget it man, it's TTAC, the right answer for everyone is a W-Body Impala with the 3.6 and a lift-kit (easier to get into, you see).

@Pch101 That's Daimler's problem, not mine. The new car is a joint project with Renault, so at least a few MBAs must think that there's money to be made.

@Maymar So, there's nothing in the middle? One extreme or the other? Nope

@Pch101 The point is that the demand dynamics in Europe are not compelling enough to produce a profit. The theory of the car that was short enough for perpendicular parking in a parallel space was good. The practice, not so much. Public transportation usually beats the micro car on price and convenience, while the experience of using that same car outside of the city is subpar. So the market is limited.

@Pch101 What about kei cars in Japan? Could the success or failure of the microcar also be influenced by culture?

@Pch101 Pch, Are you sure about the profit thing? I know it gets trotted-out every time someone mentions a Smart here, but last time I looked into it, it was all based on an article from 10 years ago claiming that Daimler had written-off some development costs from 10 years before that. Not coincidentally, Daimler declared a huge profit that same year, which means that their CFO would have been looking high and low for any and all writeoffs. Anything more recent than that? I'm surprised they would sign-up for a third generation if, as you say, the market is not big enough to turn a profit.

@Pch101 As far as I know, Daimler has never admitted to the losses. But the analysts can reasonably conclude that the losses are there based upon other information. Kei cars are a completely different game. They get highly favorable tax treatment compared to standard cars. The Japanese irrational passion to own cars, even though ownership is not easy and there is a used car inspection regime that discourages long-term ownership, are additional factors.

@heavy handle New one gets a 90hp turbo 3-banger, with manual or DCT in the US. And yes, steering feel from the non-power box is one of the things I miss about mine.

@Pch101 I should append to the above that European CO2 regulations are encouraging automakers there to produce EVs because they help with compliance. (The new regulations in Europe are similar to the first version of CAFE -- the vehicles that use minimal amounts of motor fuel help to offset the gas guzzlers.) An electric Smart will help to offset S-class sales -- the losses from the EV should be offset by profits from the flagship.

@heavy handle Dieter Zetsche, July 2014: "Following a restructuring seven-eight years ago, Smart hasn't had a considerable negative influence on our overall business and we now want to turn this into a positive influence," That's the issue they're looking to address.