Just Right – Ford Transit Connect Makes Living on the Road Easier

The tiny home trend is here to stay and provides the green-conscious a way to live in comfort with a minimal footprint, both literal and environmental. While many tiny homes require an additional capable vehicle to tow the home from place to place, a group of entrepreneurs yearning for flexibility and work-life balance have turned to a classic platform to create mobile live/work spaces that are both personal and economical.

Ford recently highlighted a few inspiring women who are using the flexibility that’s baked into the Ford Transit Connect van to make life on the road a little bit easier. Check out Ford’s release, below, then let us know what you think in the comments section at the bottom of the page.

ROAD WARRIORS: ENTREPRENEURIAL WOMEN DISCOVER LIFE ON THE ROAD CAN FEEL JUST LIKE HOME, THANKS TO FORD TRANSIT

When Teri Lou Dantzler returned home from her New Zealand vacation in 2016, one of the first items on her to-do list was researching vans.
That’s because Dantzler, a landscape photographer and grandmother, had just spent her holiday camping in a large vehicle, or “camper-vanning,” as it’s known in some parts – and loved it. After deciding to purchase a Ford Transit, she spent the next four months working with her father to outfit the vehicle with everything she needed to accommodate long road trips to capture the best photos around the U.S. – a bed, workspace, refrigerator, freshwater system and plenty of storage – and documented the whole thing on YouTube.
Living in vans – once upon a time a lifestyle dedicated mostly to surfer dudes – is now expanding to include women like Dantzler. In fact, more and more women are tricking out vans and taking their lives on the road, choosing Ford Transit and Transit Connect as platforms on which to build their own homes. Women buying Ford vans cite their lower costs, reliability, safety and security, and serviceability through Ford’s extensive North American dealer network as key purchase considerations.
“Now, I can live out on the road for extended periods of time,” says Dantzler, who also added solid maple cabinetry and purpleheart wood inlays, power inverter and solar panel to recharge the battery to her Transit. “In between venturing to unique photo locations, I do meet-ups and conduct live photography classes – all from my home on the road.”


Freedom is ‘Incredible’
For Rebecca Gross, a former Air Force captain and champion cyclist, it’s easy to be productive out on the road. Eight months out of the year, Gross depends on her 2017 Transit cargo van to get her to cyclocross and mountain biking events. She says the freedom is incredible.
“It’s always an adventure,” says Gross. “I’m happier having control over my time. I can coach and work on the road – anywhere I choose – then stop when I want and go for a ride.”
It took just a matter of days and a few hundred dollars in materials for Gross and a friend to outfit the Transit for her home on the road. She built a platform bed with storage underneath, a counter and another storage system for cycling gear and personal items.
“On a cyclist’s budget, the Transit is a lot more affordable option,” says Gross. “The dealer was surprised to hear what I was planning to do with it, but personalizing the van just the way I wanted was really fun.” She estimates the cost was $10,000 less than competing vans.
Equally important to Dantzler and Gross is the extensive Ford dealer network across North America. With more than 3,200 Ford and Lincoln dealers and more than 675 commercial vehicle centers in the United States, Ford Transit owners enjoy significantly greater access to service.

Vocis' second-gen multi-speed transmission promises lower-cost EVs

UK-based transmission engineering and control specialist Vocis wants to take electric vehicles in another direction, one with dual clutch transmissions. Vocis says its dual clutch transmissions provide seamless shifting and up to 15 percent improvement in EV efficiency. Vocis' DCT is currently on display in a Mercedes-Benz Vito minibus demonstration vehicle.

Many EV powertrans use a single e-machine (motor/generator). Vocis uses two smaller e-machines, each driving a separate input shaft. It's described as an eDCT (electric dual clutch transmission) and resembles a DCT configuration – but with two motors instead of twin clutches.

A multi-speed transmission offers faster acceleration and a higher top speed than a single e-machine. This improves hill climbing and pull-away performance, and its higher ratios in the transmission can provide more efficient high-speed cruising.

The multi-speed transmission can also help reduce the cost, because a smaller battery battery pack combined with the multi-speed transmission can deliver the same traveling range as a larger battery on a single-speed EV. Smaller battery, lower cost.

The eDCT was designed with modular architecture to make it pliable for a wide range of vehicle types, said Richard Taylor, technical director of Vocis Driveline Controls. The motors can be installed parallel to each other or on opposite sides of the unit, providing layout flexibility. Vocis' second-generation unit has received partial funding from the Niche Vehicle Network, a specialist car and chassis manufacturer association. It also was nominated for an SMMT Automotive Innovation Award last year.

Vocis first showed off its EV two-speed transmission during the Low Carbon Vehicle Event 2011 at Rockingham Motor Speedway in the UK. It was fitted for yet another minibus – this one a prototype electric minibus developed with powertrain supplier Zytek.

New multi-speed EV transmission launched in demonstrator vehicle

Efficiency class A, 115 g CO2/km. Saving the environment and your wallet: the Mercedes B 200 Natural Gas Drive

PRESS RELEASE

Stuttgart. With 16 percent less CO2 emissions, significantly cleaner exhaust gases than petrol or diesel fuel and around 50 percent lower fuel costs than a comparable petrol model, the new Mercedes B 200 Natural Gas Drive featuring, as its name suggests, a natural gas drive, has a lot to recommend it. The latest model in the successful B-Class family is due to make its public debut at the Paris Motor Show (27 September to 14 October 2012).

The B 200 Natural Gas Drive is the first B-Class model to make use of the "ENERGY SPACE" modular body concept: a partial double floor beneath the rear seat bench creates space to accommodate one large and two smaller natural gas containers, holding a total of 125 litres of natural gas (corresponding to approx. 21 kg). Thanks to this intelligent packaging method, the five-seater model is able to retain the generously proportioned luggage compartment for which it is known.

In natural gas mode, consumption of the 115 kW (156 hp) B 200 Natural Gas Drive is just 4.2 kg/100 km – corresponding to CO2 emissions of 115 g per kilometre. As a result, emissions are around 16 percent lower than those of the B 200 BlueEFFICIENCY with petrol engine, which offers equal performance. The new model belongs to efficiency class A and meets the EURO 6 emissions standard, which is not due to come into effect for all petrol-engined vehicles until 1st September 2014. But the model not only spares the environment – it is also good on the wallet: converting the consumption of the B 200 Natural Gas Drive into the energy equivalent of petrol, the price per kilometre comes out at around 50 percent lower than the fuel costs of driving a petrol model.

Performance is also on a similarly dynamic level: the B 200 Natural Gas Drive can reach speeds of up to 200 km/h, and accelerates from 0 to 100 km/h in 9.1 seconds. The B 200 Natural Gas Drive works according to the monovalent+ principle. This means that its engine is basically operated using gas. For emergencies, there is a small 12-litre petrol tank on board. In the event that the gas tank should ever run dry, the vehicle switches over automatically, and imperceptibly, to petrol operation. And because drivers are not able to select petrol mode themselves, the B 200 Natural Gas Drive is taxed more favourably as a natural gas vehicle. The range in natural gas mode is around 500 kilometres.

The trip computer menu in the instrument cluster has been extended in the case of the B 200 Natural Gas Drive: the respective operating mode is displayed. In addition, a fill level indicator and remaining range are included for petrol mode. In gas mode, the driver has access to all of the regular trip computer functions.

Visually, the B 200 Natural Gas Drive also differs from other B-Class models in terms of a few details. Its main characteristics include the distinctive front bumper with strip-form LED daytime driving lights.

Vehicles fitted with natural gas drive are not only particularly environmentally friendly, they are also sustainable. This is because in addition to mineral natural gas, they can also be operated using biogas. Even synthetically produced gas can be used: this is produced using "excess" energy from solar power plants or wind farms, and in the future could help to resolve the storage problems encountered with alternative power generation. In this respect, overall the B 200 Natural Gas Drive can be considered to be emission-free.

The B 200 Natural Gas Drive is celebrating its world premiere at the Paris Motor Show and is optionally available with manual transmission as well as the 7G-DCT dual clutch transmission. It is due to arrive in dealerships at the beginning of 2013.

With the B 200 Natural Gas Drive, Mercedes-Benz is adding a particularly economical and ecological variant to the new B-Class family. Since its market launch in November 2011, the B-Class has enjoyed outstanding popularity among customers: by the end of June, more than 70,000 units had been sold worldwide.

Mercedes’ Electric SLS Revealed

Mercedes finally unveiled the powertrain of its upcoming SLS eCell electric, gullwing supercar … and it is all kinds of high-tech, carbon fiber awesome.

The new AMG-developed, aluminum-bodied coupe features a pushrod front suspension to minimize unsprung weight (handling’s mortal enemy) in a bid to offset the weight penalties of carrying an electric motor in each of the car’s four wheels. The layout allows the car’s computers to vary torque to each wheel – a system similar in concept to Honda’s NSX supercar – that maximizes traction off the line and in slippery conditions while keeping the car’s balance predictably neutral.

Source: Gas2.0

Mercedes to Offer 2013 GLK Crossover with Diesel Powertrain

The Mercedes-Benz GLK crossover is fairly new to the U.S. market, launching in 2009 as a 2010 model. As the least-expensive sport-utility vehicle to wear the three-pointed star, the GLK is intended as a gateway vehicle to the brand for young families.

The compact SUV will get a refresh for the 2013 model year, and Automotive News (subscription required) quotes Mercedes-Benz USA CEO Steve Cannon as confirming a diesel-engine option for the next GLK.

That makes the compact crossover the sixth Mercedes-Benz model to be offered on these shores with diesel power.

While the other five use a 3.0-liter turbodiesel V-6, the GLK will get a more fuel-efficient and cost-effective four-cylinder--fitted, like the others, with the BlueTEC emissions aftertreatment system.

Motor Authority believes that Mercedes will use its 2.1-liter, four-cylinder turbodiesel engine, which is already emissions-certified for sale in the U.S. market.

Based on Mercedes’ current success with diesel-powered ML and GL models here, expectations are high for the diesel GLK. Cannon sees the new model pushing sales into the “high 30s,” compared to 2011 sales of 24,310 units.

Mercedes-Benz currently offers a much wider range of diesel options than either Audi (which currently sells the Q7 and A3 in diesel variants) or BMW (which offers its X5 and 3-Series with diesels).

Unlike Asian automakers, the Germans aren’t eager to write off diesels in the U.S. market. They're expanding their offerings as one way to meet increasingly stringent corporate average fuel economy (CAFE) rules.

And sales of diesel passenger vehicles are growing at a faster rate than those of hybrids--although from a smaller base.

Source: Green Car Reports

Mercedes-Benz to reveal production EREV for American market

At this year’s New York Auto Show in April, Mercedes-Benz says it will unveil a production-ready version of its extended-range B-Class E-Cell Plus intended for the U.S. market.

This compact debuted as a concept at last year’s Frankfurt show. It was the result of plans announced in 2009 for it and other green cars including a hydrogen fuel cell vehicle.

The Mercedes EREV will be limited production, and part of a greater initiative by M-B to boost U.S. sales by 20 percent starting in 2013.

In question is how close to the concept it will be. Automotive News did not report specifications when it learned of these plans at the Detroit Auto Show during an interview with Mercedes’ global sales chief Joachim Schmidt.

Previous reporting of the E-Cell vehicle’s design describe it as capable of all-electric range of 62 miles, and total range of 373 miles.

The powertrain relies on a Deutsche ACCUmotive lithium-ion battery pack, electric motor and 67-horsepower, 1.0-liter turbocharged three-cylinder gasoline generator.

Total power output is 136 horsepower (100 kw). The gasoline genset reportedly operates at lower vehicle speeds to charge the battery, and at higher road speeds assists the motor in propelling the car.

Acceleration from to 0-62 mph takes about 11 seconds, according to Mercedes-Benz, with top speed of 93 mph.

So it’s no Volt killer, but with that big German star on the front grille, it will certainly offer competition to the humble bowtie.

Exact launch date, volume, prices, and production specs have yet to be announced.

It’s likely M-B is only just putting a horse in the EV/EREV race without betting the farm that it will trump all others.

Or more to the point, last year Daimler’s director of fuel cell and battery drive development, Christian Mohrdieck, explained the company’s belief that the EV movement is shrouded with a lot of “hype.”

In discussing EVs last year with plugincars.com, Mohrdieck’s sensibility sounded close to the opposite side of the spectrum from that of Renault-Nissan’s Carlos Ghosn who forecasts greater market acceptance for electrified vehicles.

“People have very high expectations in terms of quality and reliability of the car,” said Mohrdieck. “There will be an increasing number of battery electric vehicles and fuel cell electric vehicles, but it won’t just jump from zero to 100,000 cars a year.”

Well it better if Ghosn’s projection of 1.5 million Renault and Nissan EVs by 2016 is to come to pass.

In this light, you can see Mercedes’ tone contrasts markedly from EV evangelist Ghosn who in sweeping his gaze across the spectrum of world automakers, said certain competitors are “naively reacting” – bringing electrified offerings perhaps, but not with enough gusto.

Whether Mercedes will be timid, or on target is a question we’ll only know the answer for later. It would be reasonable however to expect slow roll-out and cautious proceeding in M-B’s otherwise ambitious plan to expand sales of B-Class and other classes of combustion-powered cars in the next few years.

We shall learn more about Mercedes’ first extended-range EV this April in New York.

Source: GM-Volt.com

Ohio Company Puts Mercedes ML350 Into EV Mode and Onto Iceland's Roads

Amp Electric Mercedes-Benz ML EV - Click above for high-res image gallery

Amp isn't the first company to figure out that luxury vehicles can better hide the cost of an expensive battery pack than an econobox – Tesla Motors and Fisker Automotive pioneered this strategy – but this is a case where you don't have to be first to benefit. After spending a few years learning how to convert standard ICE vehicles from General Motors to electric drive (the Saturn Sky and Chevrolet Equinox), Amp last week delivered its first converted Mercedes-Benz: a honking ML 350.

Now called the Amp ML EV, the world's first production all-electric SUV was the star of the show at an event held last week attended by all of Amp's top brass as well as the mayors of Cincinnati and Red Ash (the suburb where Amp is located) and a representative of the governor of Ohio. In their speeches, the politicians made it clear they were proud that a local business would be giving an environmental benefit to a country halfway around the world, and that this showed the region's economic powerful reach. The real reason for the shindig, after all, was to hand over the keys to the ML EV's first and most important customer: Gisli Gislason, the chairman and CEO of Iceland's Northern Lights Energy (NLE), which has ordered 1,000 of these babies. We were on hand because Amp promised to let us drive it. Continue reading...

Gallery: Amp Electric Mercedes-Benz ML EV

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[Images: Copyright 2011 Sebastian Blanco / AOL]

From 2 to 1,000 and beyond

Gisli Gislason is a red-headed, Icelandic version of Elon Musk. He's outspoken and charismatic, strongly committed to electric cars but has plenty of interests outside of getting an entire nation to change the type of vehicles it drives (prime example number one: the 2009 horror flick Reykjavik Whale Watching Massacre. (For more details on the NLE "plan," or whatever it is, read this.) In Ohio, Gislason referenced Iceland's history of making big leaps away from fossil fuels, all of which need to be imported. In the 1970s, he said, Iceland imported huge amounts of oil to heat people's homes. There may only be 320,000 or so people in Iceland, but the winters are long and cold. Someone realized it would be possible to invest in geothermal power instead of importing oil, and the country got rid of oil as a heating fuel in about ten years. Gislason said he is confident Iceland can do the same shift with gas-powered to electric vehicles, adding that the U.S. could manage this feat, too, but Iceland will do it first. NLE is not dealing exclusively with Amp, but the ML EV will be part of the EV avant-garde.

Currently, there are only two ML EVs in existence, Amp's test vehicle and the one that Gislason drove out of the packed showroom onto the Ohio roads (no need to worry about spewing noxious emissions when you've got electric drive). Before he did that, we took a turn, hitting both the highway and some residential streets for around 20 minutes. It wasn't enough to see what it's like to live with one of these, but it was plenty of time to prove that anyone who is looking for an all-electric SUV that drives exactly as you'd expect such a beast to drive and has all of the amenities of an expensive German vehicle. In the days following our test drive, the ML EV was bound for the east coast and then on to Iceland, where it will be used for test drives as NLE gets ready to start selling the vehicle through the upcoming EVEN network.



EVEN stands for Electric Vehicle Environment (or something like that), but Gislason's right hand man, Sturla Sighvatsson, told AutoblogGreen that what it really stands for is one-stop EV shopping. Based on Apple Stores, EVEN concept stores will offer a variety of electric vehicles (NLE is talking to 16 different companies right now) as well as insurance, financing and power subscription plans. Currently, NLE has set its sights on Norway and Iceland for the first two stores. In other parts of Scandanavia, NLE will sell the vehicles through established dealerships. Distribution numbers for NLE vehicles throughout Scandanavia could be announced later this summer. The Iceland store will open early next year and NLE is committed to getting at least 1,000 vehicles from Amp. Sighvatsson said that, based on what he and Gislason saw during their drive in the ML EV, this is just the beginning: "This is solid. There were some glitches here and there in generation 1, 2 and 3, but what they have now is a pretty solid product. They're still working on some minor details, but we're at the stage of a deliverable product now. We're going to buy more vehicles from Amp, that's for sure."

This confidence is why the number of ML EVs out there will increase rapidly soon. Amp representatives told us the company will start building/converting between 20 and 30 units a month (the maximum capacity at its current Cincinnati location) and begin "volume deliveries" to Iceland in September. The official plan is to convert and deliver the initial 1,000-vehicle order over five years, but AMP's President and Founder, Steve Burns, told us that he expects things to escalate soon, saying that a five-fold increase in sales is possible from various buyers. To prepare, Amp is already looking for a larger facility in either Ohio or Michigan, where people are motivated to work and factories are cheap. He said Amp wants to secure the land this year and is also considering using the old Think plant in Norway or maybe making the Amp electric drive parts in Ohio and shipping them to Iceland where they would be used to convert vehicles. Since Amp currently buys stock ML 350s from Cincinnati-area dealerships to convert (at a discounted fleet rate, which Burns said, "brings the cost down nicely"), there is no reason they couldn't be purchased in Europe. Right now, Amp resells the engine and transmission, but Burns said he's love to get a glider deal direct from Daimler but the relationship – such as it is between the two companies – isn't that evolved. After all, Daimler is working with Tesla and BYD, and has its own plug-in program. "I don't want to call it a relationship," Burns said. "We got some help from them and got their blessing, and I hope we have a relationship with them. But they told us the first day we met them that they wanted to make sure there were no conflicts."



Cruising in the ML EV: 5,000 pounds of smooth

However they did it, Amp has certainly created a no-conflict vehicle, at least for the few miles we got to put on the tires. When we got behind the wheel, there were already 3293 miles on the odometer, a sign that Amp engineers have been doing some testing. Still, as is pretty common when we drive Amp vehicles – see here and here – the ML EV a bit of a work in progress. For example, the gas gauge corresponds to the battery state of charge, and the tachometer displays power going in to or out of the battery, with 12 o'clock/the top indicating that no current is moving. Small changes, but something that will have to be changed before average Icelandic drivers take them home.

When they do, they'll find that the ML EV is undeniably a nice ride, marrying the best parts of Mercedes comfort with the silent smoothness of electric drive. This is by far the quietest vehicle Amp has ever made, thanks in part to Mercedes' already-isolated interior and the fact that most of the rubber molding holding the motor in place can remain in place when Amp puts in the battery and motor. It's not just the quietest; as far as we can recall, this is the biggest EV available right now (not counting things like buses), making it a great everyday driver ... if you happen to need to carry five people every day. For single of double occupancy, the ML EV is complete overkill.



Amp has programmed the vehicle to perform most impressively between 40 and 70 mph, sacrificing a bit of speed off the line to get better highway performance. This doesn't mean that the 0-40 mph run is slow; it's just that you realize you're hauling a 2.5-ton SUV down the road when you get going from a stop sign. The official 0-60 time is "less than 10 seconds." You don't care about this when you're dealing with what we feel is the ML EV's best feature: simply wonderful coasting. When you take your foot off the accelerator, you kind of feel like you could go forever which is great for people who like to hyperbole. "The ML EV coasts so great because they don't have differentials or trannys," Burns said. "We don't do regen letting off the pedal" because harsh regen "throws people." Drivers get used to it, he said, but first-time EV drivers don't expect it, and that's something Amp wants to avoid. For now, Amp has decided against selectable regen, but the engineers have discussed putting in a sport/eco mode. When you step on the brakes, what regen there is isn't readily apparent. You can see it on the dial, but what you feel through the pedal is pretty much identical to stepping on standard brakes. At parking lot speeds, there is the tiniest bit of creep, so weak it doesn't move the car on even the slightest uphill slopes. (For other companies' takes on coasting and regen, see these articles – here and here – about the Toyota RAV4 EV and this article on the Volvo C30.)

Of course, there are some annoying parts of the ML EV that Mercedes put in and Amp couldn't take out: a terribly located cruise control stalk that constantly pretends it's the turn signal is the main offender here. And Burns told us that figuring out how to make the power steering work smoothly was a challenge, because the ML 350 weighs around 5,000 pounds. Nonetheless, Amp's 37.6 kWh li-ion phosphate battery is apparently good for 100 miles real-world driving range of 100 miles, less than the Equinox's 150. With a top speed (electronically limited) of 100 mph and the ability to charge from both 110- and 220-volt outlets and a J1772 connector.



A few other stats. The ML EV has a 5.5 kW on-board charger that offers a charge time of 15.5 hours (using 110 volts) or six hours (220/30A). You can pack in 72.4 cubes worth of stuff, just like in ICE version. The two Remy rear-mounted direct-drive permanent magnet AC motors offer 164 kW/220 horsepower and 320 Nm/236 pound-feet of torque. Amp will freely share these number, but there's one number no one will discuss: the price. This hasn't been officially set or released, and that means all we can do is guess. The 1,000-vehicle order is worth up to $100 million, which comes to $100,000 per vehicle. You probably couldn't walk up to Amp and buy one for that price, but that's what the math tell us. Should the vehicle ever get a real price tag and be available to buy in the U.S., the ML EV is everything you'd ever want for daily all-electric SUV driving.


Source: Autoblog Green

Mercedes-Benz names Tracey Matura general manager of Smart USA

Tracey Matura

Mercedes-Benz USA on Tuesday named Tracey Matura general manager for the Smart brand in the United States effective July 1.

Matura, 48, will manage distribution, sales and marketing activities for the brand, Mercedes said in a statement.

Matura began her career with Mercedes as corporate counsel before being promoted in 2000 to general counsel. In 2006, she was named general manager of strategic retail development. She helped develop Mercedes' performance-based margin system and helped implement the automaker's ongoing Autohaus dealership improvement program.

Mercedes is scheduled to take over Smart distribution from Penske Automotive Group Inc. by midyear and will run Smart as a division, similar to the way it manages its Sprinter commercial vehicle unit. Matura replaces President Jill Lajdziak, who will remain with Penske.

Matura was chosen as one of Automotive News' 2010 "100 Leading Women in the North American Auto Industry."

Source: Automotive News

Report: Smart Fortwo Electric Drive unaffected by Penske departure

The transfer of the Penske-run Smart USA operation to Mercedes-Benz USA later this year has killed plans for a Nissan-developed Smart 4-door, but isn't likely to upset previously announced plans for bring the battery-electric version of the two-seat city car to the U.S. for retail sales and leasing next year.

Smart USA already has begun a U.S. leasing program aimed at putting 250 Smart Fortwo EDs (it stands for Electric Drive) on the road, mostly in commercial fleets, and that program, too, is expected to continue unchanged, said Mercedes spokesman Geoff Day.

But expectations can change and Day - a deft hand at making sure no "t" is left uncrossed - added that once the the hand-off is completed and the Penske Automotive Group no longer handles Smart, the new Smart team at Mercedes-Benz USA "may review those plans."

What isn't likely to change - at least until the next-generation Fortwo is unveiled - is the Smart ED itself, which looks like the regular Smart Fortwo but replaces the internal combustion drivetrain with a Tesla Motors-developed 16.5 kilowatt-hour lithium-ion battery pack powering a 30-kilowatt, rear-mounted electric motor delivering 88 ft-lb of torque. The whole package delivers up to 85 miles of range on a single charge and top speed is limited to 62 mph.

The initial lease program - which is designed to help Smart develop loads of on-road use and charging pattern data from drivers, hence its emphasis on commercial fleets - is a four-year plan at a rather substantial $599 a month (versus $349 for the five-passenger all-electric Nissan Leaf).

Source: Edmunds

Mercedes-Benz To Control Smart Car Distribution in the US - Penske Relieved of Duties

Smart ForTwo EV










Mercedes-Benz has agreed to take over Smart car distribution in the United States from Penske Automotive Group, the companies announced today.

Penske launched the European microcar brand, which is owned by Mercedes' parent, Daimler AG, as an independent distributor in 2008. But after a fast start, U.S. sales of the tiny, French-built ForTwo have plummeted.

Distribution rights and management will shift to Mercedes-Benz USA. Negotiations over details, including when the hand-over takes effect, should be completed by July, said Mercedes-Benz USA CEO Ernst Lieb.

The 21 Smart dealerships that do not have Mercedes products will lose the franchise, leaving Smart with 58 U.S. dealers. Four of the 21 dealerships that will lose the Smart franchise belong to publicly traded Penske Automotive.

In addition, a four-door car being developed by Nissan for Smart USA has been canceled.

Smart USA President Jill Lajdziak will remain with Penske Automotive, the nation's second-largest auto retailer. Mercedes-Benz will run Smart as a division, similar to its Sprinter commercial vehicle unit, and will appoint a general manager, Lieb said.

Fuel economy a key

Lieb said an agreement was signed Friday, but financial details have not been hammered out. Mercedes initiated the discussions with Penske in early January at the Detroit auto show, he said.

Penske got off to a roaring start with Smart, selling 24,622 cars in the United States in 2008, as gasoline prices reached record highs. But sales have tumbled in the past two years -- falling 59 percent in 2010 to 5,927. But both parties said Smart's shrinking sales are not prompting the hand-over.

Lieb said Mercedes-Benz wants Smart back for two main reasons:

1. It needs more small-car volume to meet new corporate average fuel economy standards that take effect in the United States in the 2016 model year.

2. Daimler AG integrated Smart into the Mercedes-Benz car unit in September. The United States is the only market where Smart and Mercedes operate separately.

“It has become clear over the last few months that Smart is an integral part of our achieving the fuel economy targets of 2016,” Lieb said.

Smart’s fuel economy numbers are already included in Mercedes’ corporate average. But Mercedes executives believe they can increase Smart’s sales volume, and thus have a greater impact on the company's CAFE ratings.

Penske Automotive will handle termination of the 17 non-Mercedes-Benz dealers as part of the deal.

Penske Automotive CEO Roger Penske said the closings will include the buyback of signs, equipment and cars -- in accordance with the franchise agreement.

Mercedes-Benz could give Smart franchises to other Mercedes-Benz dealers, but Lieb said they would not be required to build stand-alone facilities.

“In most cases a shop-in-shop has proven to be the most economical,” he said. “If you are selling one or two cars, you need consistency in personnel and expenses. It will not work if you have a stand-alone facility.”

Lieb said 300 of Mercedes-Benz' 353 U.S. dealers have upgraded their showrooms to the Autohaus corporate facility program.

“This will be a lot easier than it would have been three years ago,” he said. “The facilities are completely different.”

Project Quattro canceled

Smart dealers in the United States sell the ForTwo and an electric version of the microcar. The brand isn't scheduled to receive a new vehicle for two or three years. That will be a four-door being developed with Renault/Nissan as part of an alliance with Mercedes-Benz.

A separate Nissan-based four-door that has been under development for Smart USA won't happen. That car was due to be launched in late 2011 or early 2012.

“We will stop the project,” Lieb said. “If Smart continued as a free-standing network, they would need a second model to make it viable. By integrating it into Mercedes-Benz, there is no need.”

The Mexican-built car, which had been dubbed Project Quattro, could be canceled at any time according to the agreement with Nissan.

Roger Penske said Mercedes-Benz has the marketing muscle that Smart needs.

“We have launched a brand we can hand off to MB-USA,” he said. “We couldn't give it the muscle that it needed from a marketing standpoint based on the volume.

“This is not a shutdown,” Penske added. “This is nothing compared to a Hummer or a Mercury, this is changing distributorship from a private distributor.”

Lieb said Mercedes-Benz views the buyback as “an opportunity with 353 dealers to drive Smart in a different direction.”

He said Mercedes will interview Smart's 20-plus employees to fill field and technical posts.

Michael Cantanucci, owner of New Country Motor Cars Inc., which has two Mercedes stores in Florida and one in Connecticut, said combining Smart and Mercedes makes sense because of the CAFE requirements.

He said: “The penalties going forward are just too expensive and this is a logical way for us to meet the objective.”

Source: Automotive News