Daimler’s Smart car rentals are pulling customers away from Mazda, Fiat

Article by Christian A., on December 20, 2010

Rentals being offered by Daimler AG, which makes the Smart city car, are quickly rising and have been seen to take away many of the customers from Mazda Motor Corp. and Fiat S.p.A. Apparently, there are many drivers who are prepared to give up auto ownership and go for a rental instead. Sam Eder, a resident of Austin, Texas, had sold his Mazda Miata last June after signing up with Daimler.

In an interview, Eder said that he doesn’t miss his car at all. Robert Henrich, the unit's chief, said that in early 2011, Daimler's Car2go service will add Hamburg. There are negotiations to add “dozens” more cities in Europe and North America.

Already, the Car2go service rents Smart cars in Austin and the German town of Ulm. A Frost & Sullivan study found that Daimler is up against Hertz Global Holdings Inc. and Zipcar Inc. as they all attempt to raise their share in this industry that’s expected to increase 12-fold to $7 billion in revenue in Europe and North America by 2016.

This growth is attributed to a change in the attitude of people in their 20s and 30s who consider car ownership to be a financial drag and not as a means to significantly lift their statuses.

This perception is a contrast to how the auto business has been seen as a whole. For instance, 25-year-old Niran Babalola, the director of technology at an Austin non- profit organization, prefers to ride his bike but uses Car2go when he doesn’t want to get sweaty or when he’s rushing. Babalola explained that his lack of a car is intended to make a social statement. [via autonews - sub. required]

Topics: daimler, mazda, fiat, smart

If you liked the article, share on:

Pin It

Comments

Recommended

To the proud owners and owner-to-be of the Porsche 991 Carrera GTS, there's good news for you all. German automobile manufacturer Porsche recently confirmed to the public that the Porsche...
by - March 23, 2017
McLaren diehards, this is the moment that you're all waiting for. The British automaker recently publicized the teaser outline of its new automobile that will hit the streets soon, dubbed...
by - March 23, 2017
PSA seems very confident about conquering the world. The purchase of Opel/Vauxhall for €2.2 billion ($2.3B) from General Motors makes PSA the second largest car company, just behind the Volkswagen...
by - March 23, 2017
Reporting for duty. It’s been a year since the Victoria Police was loaned a new Mercedes-AMG GLE 63 S Coupe. In those 12 months, the coupe served as the law...
by - March 23, 2017
After making its debut at the Paris Motor Show last year as a concept car, the Trezor by Renault managed to bring home the 2016 Concept Car Design Of The...
by - March 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries