Retailer role to ‘completely change’ for Smart

24 May 2022

Mercedes-Benz sister brand Smart will relaunch in the UK this week with an all-new family car and a “complete change” for the retail network, according to Smart CEO Dirk Adelmann.

Speaking at the FT’s Future of the Car conference last week, Mr Adelmann set out the brand’s approach to distribution, which will involve a partnership with leasing giant ALD.

Commenting on the future direct sales model for Smart, Mr Adelmann said that while he wasn’t “forcing customers to buy online”, ALD will be providing a full “digital capability” for Smart.

Mr Adelmann added: “The dealer role will completely change or evolve. In the past they were basically pushing metal for OEMs. So if you [an OEM] had a problem you could shift it to your dealer body and the dealer body takes care of it.

“In the direct sales model, that’s no longer possible. So you should, together with your partners, protect your residual values yourself. And to that you need more than just leasing, you need other models to spread the risk a little bit.”

He added that subscription and car sharing models were also being considered and that to achieve cost savings Smart needed to “rework the sales model”.

Smart’s new car, called the #1, is a fully electric small family SUV that will rival the Mini Countryman. The #1 has been developed with Chinese firm Geely which owns Volvo, Lotus, LEVC and a host of other brands around the world.

* Read more on agency from the FT Future of the Car Summit in next month’s Auto Retail Profit – subscribe here

Tags: ALD, Dirk Adelmann, Mercedes Benz, SMART

Why Subscribe?

As an auto retail executive you need insightful and unique industry intelligence to boost your business potential. Here’s a taste of what Auto Retail Network has to offer:

Get informed and boost your business potential
More than 1,200 fellow executives have joined us since launch
Independent, carefully crafted, unique content relevant to you and your business
Develop a greater awareness of market trends and opportunities
Access to a wide range of materials whenever, wherever and however you want it
Significant discounts on ARN events, reports and other publications

Subscribe now

Latest ARN Blog Post

Testimonials

I’ve found today really exciting. I’ve attended a number of conferences this year and I’ve been surprised by how well attended this was by some of the great players in the industry and by the quality of the speakers. I’d say it was definitely the best event I’ve attended this year.

Chris Penny, Brand Director, Auto Trader UK

I found it very insightful. I’ve taken copious notes and there are lots of things we can take away and do.

Tracy Perryman, Managing Director, Denbury Diesels

I’ve been an Auto Retail Network subscriber since it was first launched. I find Auto Retail Bulletin particularly useful since it gives real, in-depth analysis into the issues facing this industry.

Ken Savage, commercial director, Perrys Group

This is the 3rd time Ive attended the event & I thought today’s was the best one yet, the content was superb. It really gave us an insight into how weve got to take our business forward.

Ian Godbold, Marketing Director, Cambria Automobiles

I use Auto Retail Bulletin to keep fully up to speed with what is going on. The analysis is first class and I read it from cover to cover. It really helps my understanding of our industry and is not to be missed.

Robert Forrester, CEO Vertu PLC