Why are smart cars so expensive in the US?

Answer 1

The reason smart cars are so expensive is because not many people buy them. The car companies think that since they are great for the environment people will buy them without thinking. Well, they're wrong and they can't make them so cheap or else people may start to think they are bad cars because they aren't worth a lot. But, if smart cars did start selling better because they are cheaper, then car companies should stick to that strategy until it doesn't work anymore. And, the environment will make positive progress.

The real savings between a subcompact and a super-small car is in fuel efficiency: in terms of materials cost, there's maybe a 10% difference between a Smart and a Fit/Jazz. This is reflected in the retail cost: this is not just a US thing as some manufacturers change; there's a similar price differential in Europe as well, where the Smart is a very good seller. The difference is that fuel prices are subsantially (like two times) higher in Europe as in America. at $6/gallon, the difference between Fit/Jazz's 35mpg and Smart's 50mpg becomes more important than baseline sticker price.

Because of the basic safety and mechanical requirements of a legally driveable new car, which while different from country to country, are similar across the industrialized world, there is a floor cost below which cars cannot go. Some efficiencies of scale are possible of course, and there are challenges bringing a microcar into the US, which have to be retooled to meet US safety standards. But the basic problem is, once you approach that floor, you need to be competing on non-sticker costs... like fuel.