DaimlerChrysler bets that mini-car will grow on us
DaimlerChrysler has confirmed plans to launch a four-seat version of its Smart mini-car in the United States in 2006.
The German-American automaker will build the Smart ForFour in Brazil at a plant that now makes the Mercedes-Benz A-Class cars sold in that country as well as C-Class sedans sold throughout North America.
Smart is a brand started in Switzerland in 1994 as a joint venture of watchmaker Swatch Inc. and DaimlerChrysler to design, build and market tiny, two-seat urban commuter cars. It was taken over by DaimlerChrysler at the end of 1998.
Since the first Smart city coupes went on sale in October 1998, more than 500,000 gasoline- and diesel-powered models have been sold globally.
The line today includes a roadster; a convertible version of the coupe; the “crossblade,” which has neither roof nor doors; two specially tuned performance models; and now the four-seat version to be sold here as well as in Europe and Asia.
Pricing of the ForFour has not been disclosed. Two-seat Smarts sell in Europe from about $11,000 for the base city coupe to $15,000 for the roadster. The high-performance models top out near $24,000.
Still Sleeping on It. General Motors Corp. is extending overnight test drives for prospective buyers until Sept. 2. The program, which began in April, was scheduled to expire July 21.
GM is using the test drive and programs including no-interest loans and rebates of as much as $4,000 on some models to push sales, which through June were down 5.4% from a year earlier.
The 24-hour test drive program lets drivers take most of GM’s new cars or trucks home for an overnight trial (sorry, no Corvettes or Hummers).
The company says about one-quarter of the 120,000 participants through May ended up buying a GM vehicle.
Nissan Shifts Gears. Nissan says that its Jatco transmissions unit will begin building continuously variable transmissions in Mexico in 2005.
CVTs, as they are commonly called, eliminate the momentary power loss and fuel waste that occur whenever a conventional transmission changes gears. Some automakers maintain that equipping a car or truck with a CVT can improve its fuel economy by 15%.
The transmissions replace standard gears with two conical pulleys linked by a steel belt. The transmission adjusts the belt’s position on the cones in response to the demand for power, keeping the engine running in the most appropriate power range.
Jatco is a major manufacturer of CVTs used on vehicles with larger-displacement engines of 3.0 liters and more. It is jointly owned by Nissan, the majority partner with an 82% stake, and Mitsubishi and supplies both Japanese automakers. Executives have said, though, that they would like to expand Jatco’s business base.
Honda Keeps Truckin’. Executives of Honda Motor Co. have said in recent interviews that the company intends to introduce two more sport utility vehicles by 2006, starting with a mid-size SUV-pickup blend (think of the Ford Explorer Sport Trac), for the Honda brand next year.
A performance-oriented compact SUV for the company’s Acura luxury brand is expected to follow. It would use the same platform as the Honda CR-V and Element SUVs.
