Penske Automotive Group Inc., “a large chain of car dealerships”, made a deal with Nissan Motor Co. agreeing “to sell a Nissan-made small car in the U.S. under the Smart brand.” Penske already sells Daimler AG’s two-passenger Smart ForTwo. Hoping to boost Smart sales, Penske is looking forward to adding this Nissan-made car. Smart is distributed only by Penske. This new Smart model is to be sold only in the U.S. and is expected to go on sale in the fourth quarter of 2011.
Nissan’s four-door model will expand Smart’s brand because Daimler’s Smart is a two-door. It will be designed and engineered by Smart and Nissan.
Chairman Roger Penske states "We are proud to be a partner with both Daimler and Nissan, two companies focused on bringing high-quality, fuel efficient products to the U.S. market.”
When gas prices hiked to four dollars a gallon, Smart sales increased. However, since gas prices have fallen, Smart sales did the same. Because of the current lower gas prices, and therefore a changed market, it is a bright idea to grow the Smart brand. Smart will benefit from expanding their vehicle lineup to attract a wider range of people.
Nissan’s new Smart car will be a gasoline-powered hatchback sold by Smart USA and will be larger than the Smart ForTwo. Nissan is a company focused on bringing high-quality, fuel-efficient vehicles to the U.S. market. The U.S. market will react positively to Nissan’s new car’s seating capacity. Its increased seating capacity, compared to the Smart ForTwo, allows Smart to meet the needs of more consumers, especially American customers. Since Smart is suffering now, it is wise for Nissan to build a new four-door version to boost its sales. Penske will benefit from its deal with Nissan. I expect this new vehicle to sell well in the U.S.
Irene Kalis
Irene, please make sure to include your own opinion.
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