How Daimler Smart could have made billions...

voyager · Jun 25, 2015

Instead of losing billions. Seems exaggerated. Still... Did you know that Smart Car has the dubious name of being the biggest European automotive money drain of all time. Daimler has lost $4.6 billion over the course of its existence – approximately $6,100 for each Smart sold by the end of 2013?

Interesting stuff, since Tesla did the Smart EV and also because of the discussion whether Tesla should downsize.

How Daimler Smart could have made billions (1) : EV WORLD.COM [1332] (part 1)
How Daimler Smart could have made billions (2) : EV WORLD.COM [1333] (part 2)

David99 · Jun 26, 2015

The author's competence goes south as soon as he compares cars and the iPhone. These products and the way people buy each are too different to compare. You can't just take the success of the iPhone and use it as an example of how a car company should do their business with one particular model. The way Apple makes money on their phones and Daimler makes money on the Smart are completely different. Currently the average owner holds on to a car for 6.4 years. Phone are replaced every 1.5 years. Apple makes 30% of every purchase of an app or in-app purchases. Car manufacturers make nothing once the car is sold.

I also don't buy the referenced article that they are loosing money on Smart. The success of the Smart is well proven and the fact that so many other car manufacturers pretty much copied it underlines it.

voyager · Jun 26, 2015

David99 said:
The author's competence goes south as soon as he compares cars and the iPhone. These products and the way people buy each are too different to compare. You can't just take the success of the iPhone and use it as an example of how a car company should do their business with one particular model. The way Apple makes money on their phones and Daimler makes money on the Smart are completely different. Currently the average owner holds on to a car for 6.4 years. Phone are replaced every 1.5 years. Apple makes 30% of every purchase of an app or in-app purchases. Car manufacturers make nothing once the car is sold.

I also don't buy the referenced article that they are loosing money on Smart. The success of the Smart is well proven and the fact that so many other car manufacturers pretty much copied it underlines it.

Like some research bureau makes up something like that. Check the internet. The fact that Smart lost billions has been covered many times over, much to the aggravation of shareholders (also covered). And nobody is copying Smart. I know that reading is an art in itself. Author states that the car needs reinventing like the (mobile) phone did. There's your analogy.

polything · Jun 26, 2015

Someone please educate me about the SMART car. It is small, look un-safe and have 30+ MPG. I would stick with normal ICE with lots of crush zone.

SmartElectric · Jun 26, 2015

I have a Tesla and a Smart ED.
Both have many air bags.
Both have traction control, electronic stability control and anti lock braking.
Both have rapid acceleration from a stop.
Both have designed the car chassis to absorb crash impact well, Tesla is obviously bigger and safer, but the Smart ED is very safe when driving in the city at normal speeds under 100km/h.

I love both.

My Smart ED is perfect for my short 20km commute.
It's quick to the speed limit in the city, to me, it feels every bit as rapid as my S85 to 30km/h, but after that, the Tesla is light years more rapid!

voyager · Jun 27, 2015

Good to hear, SmartElectric.

WHat the author says, is that Smart could have done so much better. Better performance and range to begin with. Looked it up: the ForTwo's drag coefficient is 0.38.

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How Daimler Smart could have made billions...

voyager

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David99

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polything

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SmartElectric

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