Smart's ForTwo represents the automaker's biggest problem. The 13-year-old design needs to be revamped to be competitive.
Mercedes-Benz USA has named one of its veteran retail strategists to take over the troubled Smart brand.
Tracey Matura, currently general manager of retail strategic development, was named to take over the brand a month after M-B announced it was canceling the Penske Automotive Group’s contract to distribute Smart cars in the U.S.
Matura has a tough job. Initially given Smart distribution rights in 2008, Penske had good success the first year as the car’s novelty and tiny size made it a cult favorite. But once the early adopters got their Smart cars, keeping the sales momentum became tough.
Matura started her career with Mercedes-Benz USA as corporate counsel and was promoted to general counsel in 2000. She has been in her current position since 2006.
She has been instrumental in the development of the performance based margin system as well as the implementation of the Autohaus dealer initiative.
Matura replaces Smart USA President Jill Lajdziak, who will remain with Penske.
Mercedes has its work cut out for it turning Smart into a profitable enterprise. The biggest problem is product. Simply put, the Smart ForTwo isn’t a very good car. It’s automated manual transmission is clunky, the car is slow and the fuel mileage is disappointing for such a small car.
A new electric model is drawing attention, but supplies are limited, so they won’t do much to boost Smart sales.
Penske had been working on a plan for a new model to help fill out the Smart showroom, a small five-door it was co-developing with Nissan. That Penske spent more than $10 million on the new car before Mercedes pulled the plug on its distributorship shows how the move blindsided Penske Chairman Roger Penske.
Now that Mercedes has brought Smart back home and canceled the Nissan model, it will need develop new models, including a replacement for the ForTwo, which actually went into production in 1998 and a four-seat model to replace the discontinued ForFour model.
The timing would seem to be right for microcars such as the Smart. Gasoline prices are rising and government regulations are forcing automakers to consider many strategies to reach the new mandates.
Mercedes-Benz USA today named Tracey Matura general manager for Smart USA effective May 1.
Expect Mercedes to begin devoting far resources to its Smart brand because it needs the small cars to offset its luxury models sold under the Mercedes brand.