MINI's Orphans
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Washington DC March 19, 2009; The AIADA newsletter reported that orders are still coming in, and showrooms still draw shoppers, but Smart dealers report an increasing number of cancellations for the petite ForTwo, primarily because of economic concerns.
"Since November, it seems people are backing out of purchasing a Smart," says Sean Sarraff, brand manager of Smart Center Germantown in Maryland. That creates "orphans" — unsold cars sitting at dealerships.
Sarraff has 48 Smarts at his store. And 25 are convertibles, which are unlikely to sell in winter. Automotive News reports that Smart's retail system is set up to discourage orphans.
The U.S. distributor, Penske Automotive Group Inc., requires that a Smart be ordered by a consumer before the car is shipped to a dealer. Only if a buyer ordered a car and changed his mind while waiting for delivery did a vehicle end up in dealer stock.
A Midwest dealer who didn't want to be identified says that last year he averaged five or six orphans but now has 15. "A lot of them were purchased as an extra vehicle," the dealer says. "We are in a high-line neighborhood, and many were bought as toys — as a runaround car."
In January, Smart launched Smart Express to match customers with orphans.