Monday 14 August 2017

Smart Reduces Dealer Count by Two-Thirds

Smart announced earlier this year that it will only offer electric vehicles in the U.S., and dealers were asked to decide by the end of June whether they would continue selling the brand’s pint-sized cars. According to Automotive News, more than two-thirds of dealerships opted out, leaving Smart with just 27 remaining outlets across the nation.

At the time of the announcement, Smart had 85 dealerships in the U.S. While 27 will continue selling the Smart ForTwo, which will soon be available in EV form only now that the gas model has been discontinued, 58 will shift to service-only centers. As Automotive News points out, Smart will have fewer dealerships than both Lamborghini and Lotus.

Penske Automotive Group served as an independent distributor for Smart vehicles in the U.S. since 2008. But now it’s dropping Smart sales at five of its six outlets. Sales will continue in San Diego, where buyers are particularly interested in EVs.

Overall sales of the ForTwo have dropped amid low gas prices and a growing demand among consumers for crossovers. Last year, Smart only sold 6,211 ForTwos in the U.S., down 17 percent from the prior year. During the first seven months of this year, sales are down 30 percent from a year earlier to 2,165 cars. A redesigned version of the ForTwo Electric Drive will go on sale before the end of the summer.

Even though the majority of Smart dealerships are shutting down sales, these outlets will continue to service cars. The vast majority of Smart operations that opted out of selling vehicles are expected to complete the transition by the end of the year. In the meantime, the dealerships will continue to unload gas-powered ForTwos until inventory runs out.

Source: Automotive News (Subscription required)

The post Smart Reduces Dealer Count by Two-Thirds appeared first on Motor Trend.



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