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
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