Smart dealership in Detroit to close, as Mercedes-Benz dealer will sell its cars

Article by Christian A., on June 21, 2011

A standalone Smart dealership in Bloomfield Hills, an upscale Detroit suburb, will shut down next week as ownership has been transferred to Mercedes-Benz from Penske Automotive Group. The nearby Mercedes-Benz of Bloomfield Hills dealership will then be selling the minicars.

The closure is due to Mercedes’ move last February to take over Smart sales, according to a letter sent to customers. The dealer network had been operated by Penske Automotive Group.

In the letter customers, the Smart dealership's general manager, Shane Reed, said that from July 1, Mercedes-Benz of Bloomfield Hills will be representing the Smart brand in the metro Detroit market. In 2008, the European microcar brand was launched by Penske as an independent distributor.

The Smart brand had been owned by Daimler AG, Mercedes’ parent. Automotive News said that ForTwo had a great start but its sales in the U.S. rapidly plunged.

As gasoline prices rose to record levels in 2008, Penske had terrific sales with Smart, delivering 24,622 cars for that year alone. However, sales in the last couple of years have plummeted.

Sales fell 59% in 2010 to 5,927. For this year through May, U.S. sales of the ForTwo fell to 2,226 units, about 20% lower than the same period last year.

According to the deal revealed last February, Smart's distribution rights and management have been transferred to Mercedes-Benz USA. Of the 79 dealerships that offered Smart cars, 21 didn’t have Mercedes products and will be losing the Smart franchise.

If you liked the article, share on:

Comments

Recommended

Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 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