The little car that could is finally coming to Orange County.
After a long battle to bring the Smart Car, which is popular in Europe, to the U.S., Michigan’s Smart USA will begin distributing it to dealerships this year.
In OC, Mercedes-Benz of Laguna Niguel is set to sell the 2008 Smart ForTwo model.
Mercedes-Benz Cars, a unit of German automaker Daimler AG, named Smart USA, a subsidiary of Penske Automotive Group Inc. (formerly United Auto Group Inc.) as the exclusive North American distributor, which will sell the cars to dealers.
Smart USA is expected to announce its dealers at the end of this month. It already has 40,000 customers who paid $99 to reserve a car, according to the company.
Penske is the second largest dealer group next to AutoNation Inc., based in Fort Lauderdale, Fla.
Daimler’s Smart Cars are sold in 36 countries, mainly in Europe. The tiny two-seater for years was deemed unsafe to compete with the popular bigger-is-better vehicles that command California streets. This new model was designed specifically to meet U.S. safety and emission standards.
|
|
Smart Car on its OC debut |
Companies such as G & K; Automotive Conversion Inc. in Santa Ana, have been importing Smart Cars and converting them to meet U.S. standards and then selling them through dealers for years.
With high gas prices and a surge in the green movement, the Smart Car is in demand.
The car’s tiny size is likely to prevent it from being sold in large volumes. The ForTwo is 8.8 feet long, 5 feet high and 5 feet wide and gets 40 miles to a gallon. The price is set to be $12,000 to $13,000, depending on the model,convertible, basic or coupe,about the same price as a Honda Fit or a Toyota Yaris.
Because the Smart Car is likely to be more of a fashion statement than a functional everyday car, some dealers have opted not to sell the European imports.
Fletcher Jones Motorcars of Newport Beach opted not to be a dealer, according to Garth Blumenthal, general manager.
Christmas Charity
Every year, Wilson Automotive Group’s 1,500 employees give their boss, David Wilson, a Christmas gift during the company party: cash that they collect to be donated to several local and national charities. This year, employees raised $277,000 to be donated to Orangewood Children’s Foundation and Olivecrest, among others.
The staff set up an endowment fund to benefit Orangewood in Wilson’s name. Interest from the endowment, now funded with more than $500,000, sends Orangewood students to college.
Bucking the Trend
Bucking the prediction that the housing slump will leave homeowners with less cash to redecorate, Environment Furniture Inc. is expanding.
The furniture company, which opened its newest 2,800-square-foot store at South Coast Plaza, has seen its sales rise for the four years it’s been in business.
“I read the papers and the news is terrible,” said Davide Berruto, chief executive. “But our numbers are good. We still have a lot of room to grow and markets to grow into.”
Making eco-friendly furniture is one of the company’s tenets, but Berruto says customers are attracted by the design.
“We don’t compete on price,” he said.
Its flagship store is in H.D. Buttercup in Los Angeles.
Tenant Dispute
Meanwhile, a slew of furniture stores at the recently opened South Coast Home Furnishings Centre in Costa Mesa aren’t so happy.
And it’s not just because of sales.
Don Logan, owner of Waterfront Furnishings, said tenants are getting slighted.
Logan said the original developer of the center, Birtcher Development and Investments, and its current manager, PacificWest Asset Management Corp. of Costa Mesa, haven’t marketed the center as promised. The owners haven’t established a food court, which would draw more customers, according to Logan.
“Everybody is losing and losing big,” Logan said. “Nobody knows the center is there.”
Logan said he is being evicted for speaking out against management. PacificWest Manage- ment could not be reached for comment.
The bigger chains, such as Wickes Furniture, that sit along the freeway are doing better because of their visibility, Logan said. But few shoppers came to its recent grand opening, which Logan said should’ve been held on Labor Day weekend, the best weekend for furniture sales. The center itself had been open for quite some time.
Birtcher, which developed the 300,000-square-foot center with Buchanan Street Partners in 2005, sold the center to South Coast Home Furnishings Center LLC this past year for more than $100 million.
Stores at the center include NW Rugs, Easy Life Furniture, C.S. Wo & Sons, White Orchid Living and Linder’s Furniture.
