ZAP ships their first "Smart Car" to the United States

Humphrey Cheung

March 31, 2006 21:56
It was once thought that a sub-compact car, or "micro cars" could never be successful in the United States. The phenomenal success of the Mini Cooper shattered that perception and now ZAP, based in Santa Rosa California, is offering their "Smart Car" to the United States. ZAP is already doing a brisk business in Europe, but will Americans go for a two seat car that looks like a golf cart?

The European car market is obviously very different from the one in the United States. Gasoline, while growing increasingly more expensive, is still relatively cheap in the USA. Prices in many European countries are at least twice as much per gallon and in some cases, like in Norway, are almost triple. In addition, space is at a premium in Europe and as a result parking is extremely expensive. The Smart Car has been certified by the U.S. Environment Protection Agency for 40 miles per gallon. Its small size means it can squeeze into empty spaces that bigger cars cannot use.
A school teacher in Wellington Florida took delivery of the first car. ZAP is selling the cars for around $25,000 and is also planning on shipping their all-electric XEBRA car later this year. Zap's Smarts are based on the Smart "fortwo coupe," which is available for around $12,000 in Europe.

Tags: smartcar

Daimler to Halt 4-Seat Smart Car

From Reuters
March, 31 2006

FRANKFURT, Germany — DaimlerChrysler's supervisory board Thursday approved a plan to scrap the four-seat Smart car model in yet another costly overhaul of the loss-making mini-car unit, it said. The world's fifth-biggest automaker had said Saturday that it planned to halt output of the Smart ForFour and focus on the two-seat model in a reorganization that would cost around 1 billion euros ($1.2 billion) and 300 Smart jobs in Germany.

That remains the plan, a spokesman said. It will book about 80% of the expected costs in the first quarter of 2006. German-American DaimlerChrysler, which is based in Stuttgart, Germany, and Auburn Hills, Mich., has said pruning Smart's model line-up once again would ensure that Smart swings to profit for the first time next year, when a new version comes out of the snub-nosed two-seater with which Smart debuted in October 1998. Smart has lost money ever since it was launched.The governing bodies of DaimlerChrysler "have approved measures related to the company's focus on the Smart ForTwo, including the intention to cancel production of the Smart ForFour," a statement said. Now it has to negotiate compensation for suppliers and Japan's Mitsubishi Motors Corp., which makes the ForFour model at a plant in the Netherlands. Mitsubishi Motors "will continue building its Colt B-segment car at its NedCar plant in the Netherlands," Mitsubishi said, noting the model was its top seller in Europe. Sales of the four-seat Smart fell by a quarter last year to 43,700 units. DaimlerChrysler hopes that dropping the ForFour model will help its premium Mercedes-Benz division hit its target of a 7% operating margin next year. DaimlerChrysler shares rose 67 cents to $57.65. Tags: smartcar

Smart-Automobile LLC Announces Technology License for Smart Car Americanized by ZAP(R), Final U.S. Clearance for Smart Cars In-Hand

LONG BEACH, Calif., March 15 /PRNewswire/ -- Smart-Automobile LLCannounced today its proprietary technology has been successfully appliedin the modification of the Smart For Two Coupe / Convertible for directimportation to the United States. Smart-Automobile is part of a venture to independently bring the fuel-efficient Smart Car to the U.S., where the popular car has not been availablesince its introduction in 1998. Smart-Automobile has contracted for theexclusive distribution of the Smart Cars to publicly owned automotive companyZAP of Santa Rosa, California, to be marketed to consumers through a ZAPauthorized dealer network. Registered import company G&K AutomotiveConversions of Santa Ana, California, has been contracted for the conversionof the cars to meet U.S. standards. Smart-Automobile President Thomas Heidemann announced that he is pleasedto reach this milestone, having invested significant capital and several yearsin bringing the fuel-efficient car from Europe to the United States where gasprices are reaching record levels. "There has been a great deal of excitement about the Smart Car coming tothe United States, and I want to congratulate our partners and futurecustomers for their hard work and patience in reaching this point," saidHeidemann. "With such a unique new car in the U.S. market and so much demand, we wantto reassure the public that we strive for excellence in providing the highestlevel of service and support," said the German-born entrepreneur. "Such demandhas concerned the government with the possibility of illegal Smart Carsentering the country, and we want to assure everyone that Smart-Automobilewill do everything in its power to make sure the cars are sold in a propermanner through an authorized dealer network, with certified technical trainingand legally imported cars." Under its contract, Smart-Automobile is supporting the venture in hostingexclusive training programs for ZAP Authorized Dealers as well as thelicensing of the proprietary Smart diagnostic systems used in maintaining thecars and ensuring they operate to U.S. standards of safety and emissions.Smart-Automobile owns the OBD II technology as well as the tool molds,software and factory inventory housed at G&K. Heidemann added: "I want to clarify this business venture with the public,because it has been quite unique in the today's auto industry. We have,independently of the manufacturer, obtained full U.S. safety and emissionscompliance with the Smart Cars. Usually imported cars are brought into theU.S. through exemptions. In this situation, ZAP owns the exclusivedistribution rights regarding our contracts to sell the Smart Car convertedthrough SA and G&K in the USA." Heidemann said that they will continue to obtain non-compliant carsthrough wholesalers, brokers and other entities worldwide to supply vehiclesfor the U.S. market. Smart-Automobile will only service cars with VIN numbersprovided through ZAP and will give notice to EPA and DOT on every car itdelivers. These VIN numbers will be kept on file by ZAP Authorized Dealers toensure that all Smart Cars driven in the country meet government regulations. Contact: Smart-Automobile LLC Thomas Heidemann (562) 252 1644 ext. 212This release was issued through eReleases(TM). For more information,visit http://www.ereleases.com/.Tags: smartcar

Europe's Smart Car Coming To America

By Nathan Edwards
Good news for the "smaller is better" crowd: The fuel-efficient Smart Car is (finally) on its way to our shores. Smart-Automobile LLC announced today that its Smart coupe and convertible, available in Europe since 1998, are ready to be imported to the United States.

Much of the delay involved learning how to modify the cars and tooling the proprietary Smart diagnostic system to ensure the cars meet U.S. safety and emissions standards.
"There has been a great deal of excitement about the Smart Car coming to the United States, and I want to congratulate our partners and future customers for their hard work and patience in reaching this point," said Smart-Automobile President Thomas Heidemann.
All Smart Cars imported through this arrangement will be registered with ZAP and the Department of Transportation to ensure that they meet government standards. The Smart Car gets 60 mpg and can reach speeds of 85 miles per hour, according to the ZAP Web site, and will range in price from $15,000 to $25,000 fully loaded.
The Smart Cars will be Americanized by G&K Automotive Conversions of Santa Ana, California, and distributed by Santa Rosa-based ZAP, a leader in fuel-efficient and eco-conscious cars.
Tags: smartcar

Mitsubishi Motors to stop making DaimlerChrysler's Smart minivehicles - report

TOKYO (AFX) - Mitsubishi Motors Corp has decided to end production of DaimlerChrysler AG's Smart minivehicles in Europe, following the German partner's move to restructure that business, the Nihon Keizai Shimbun reported without citing sources. The cancellation may also prompt Mitsubishi Motors to overhaul its European operations, the business daily said. The Japanese carmaker still plans to supply DaimlerChrysler with engines for the next-generation Smart two-seater. Mitsubishi Motors now makes about 40,000 four-seater Smarts a year at wholly owned subsidiary Netherlands Car BV under an original equipment manufacturer contract that is effective through 2010. The newspaper said Mitsubishi Motors will seek financial compensation from the German firm, and both companies still need to determine when to halt production. kiyori.ueno@xfn.com

Tags: smartcar

Mitsubishi to seek compensation from DCX for SMART ForFour cancellation

Following DaimlerChrysler's announcement that it will be stopping production of the SMART ForFour sedan, partner Mitsubishi Motors Corp. has stated it will end production at the company's Netherlands plant as well. The Japanese automaker still plans to manufacturer engines for DCX's SMART two-seaters.Both companies have not yet determined when will be the last day of production. The Nihon Keizai Shimbun states, though, that Mitsubishi will be seeking financial compensation for DCX's abrupt termination of their partnership in the ForFour.[Source: Nihon Keizai Shimbun via AFX News Limited via Forbes]
Posted Mar 30th 2006 5:34PM by Joel Arellano
Tags: smartcar