Wednesday, August 27, 2008

Too Small To Good

[ Smart may not a smart idea for all ]

There is a part of me that wants to compare the early Smart phenomenon to either the early days of the Volks­wagen Beetle or Mini. But the comparison doesn't hold up very well. The early buyers of the Beetle were World War II veterans who had seen firsthand in the war how tough and durable the German army's Volkswagen military vehicles were. After the war, when actual Beetles were being made, word spread fast how reliable and durable the bubble-shaped cars were. In the case of Mini's comeback in 2001 under the direction and engineering of BMW , the car, despite its small size, was fast, stylish, and extremely well engineered. And, the Mini Cooper's fuel economy is nearly as good as the Fortwo's, though a well-equipped model costs thousands more than the Smart.

The fact that Smart is manufactured by Mercedes-Benz also pushes up my expectations. For years, Mercedes lost money on Smart. Currently, the company says it is making profit after a significant cost-cutting program that eliminated other Smart vehicles. But it feels a bit like the costs of manufacturing the cars in France and selling them in the U.S. when the dollar is so weak against the euro has driven the German automaker to cut too many costs, to the point where, but for the wacky design that appeals to some, it's simply not worth the money.