Clark has been talking about the “Smart Car” for several years. It’s a tiny, fuel efficient car that is a joint venture between Mercedes and the Swatch Watch folks. It fits in half a parking space and people love the fashion statement it makes. But neither company has been able to make money off of it. Mercedes has lost millions of dollars on the deal, in fact. They are great for use as a commuter car, but people don’t seem to be buying them in Europe. Jump across the pond to America where a company known as
zap.com is now selling the cars. It took a bit of work to get the cars here and to fight off European manufacturers who were fighting it, but the California company was able to do it. The shocker is that it’s an economy car in Europe, where it costs about $11,000. In the U.S., people are fighting over these cars and have bid up to $40,000 for them. Clark doesn’t get why they’re so big here and not any big deal in Europe. It could be that people want more fuel efficient alternatives. For that reason, Clark is putting his money on the three similar cars coming to the country this year. They are the Fit, from Honda, the “Versa” from Nissan, and the “Yaris” from Toyota. They’re all going to be about $12,000 and they’re going to be a bit hit. But Clark wants to congratulate Zap for sticking to its knitting and getting rewarded for it.