smart is a 'must have' for Daimler AG and Mercedes-Benz, but must grow in its own way and on its own merits, says chairman and head of Mercedes-Benz Cars, Dr Dieter Zetsche.
Now in the black and producing profits and significant 'green' goodwill for the Benz conglomerate, the mini-car brand currently consists of one model, the fortwo. A range of conventional powertrains is now offered and both mild hybrid and plug-in electric versions are around the corner, but is that enough to secure the future for the brand?
"I would say it was never more than it is today, because while we haven't made money with Smart for many years, we do now. So I very much have a different perspective... [regarding the future of the brand]. For me it's now all, and was nothing before," Zetsche told the Carsales Network.
According to Zetsche, Smart cannot afford to repeat the mistakes of the past. The fortwo's stablemates, the smart roadster and Mitsubishi Colt-based forfour, shared little with the core product and did little for the brand, the Benz boss says.
"When we went for expansion, we never had the solid foundation and we tried to solve the economical challenges we had by saying we need scale. Unfortunately the additional products had [almost] no common paths with the original one, so therefore the scale didn't build... We just built more and more problems."
Zetsche said the move back to concentrate on the fortwo made sense.
"I think it was sound to go back to the base which now is very successful -- in US [for instance] we don't know how to deal with the demand.
"I'm not claiming that most of our profits are coming from our smart sales in the US but still, we are making money with smart. On the market side it's doing very well and, of course, it's a very positive element of our portfolio in the current situation of CO2 [emission reduction] discussions," Zetsche stated.
"It's the CO2 champion and is certainly helping us across the board with our company," he revealed.
The importance of smart goes beyond simply moving metal, however, implied the Daimler chair.
"If we hadn't have invented smart 10 years ago, and gone through a lot of trouble with it, we would have to invent it today.
"It's not just the technology... but it's the different ways of ownership and use of smart which we are developing now. Smart has been very innovative from day one, perhaps even ahead of its time, thus today is certainly the time to use all the potential of smart. We will definitely do that," he stated.
But for all the positive talk, concrete plans for new smart models are yet to be confirmed.
"If and when we would look for further product portfolio expansion, beyond drivelines, is not sure," Zetsche admitted.
"Perhaps it's really an extension -- increasing the scale [of fortwo production] -- secondly, it [any new model] must not be just another 'me too' product... If we go into other segments, there must be a 'smart' element to it which is different from the other products available.
"We have some very good ideas in this direction, but no final decision," Zetsche concluded.
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