US car customiser ZAP caused a flap by announcing that it has ordered $1 billion worth of Smart minicars from DaimlerChrysler. However, it seems far from a done deal as DaimlerChrysler, which has decided not to market the cars itself in the US, said it was unaware of the order.
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California-based ZAP, which modifies the Smart car to meet US safety and emissions standards, acknowledged it was still awaiting confirmation that the order would be filled.
“ZAP placed the purchase order directly to the DaimlerChrysler Group in an effort to expedite delivery of U.S. compliant Smart Cars to consumers. ZAP is still waiting for confirmation that smart GmbH will fulfil the purchase order,” it said in a statement.
Last week, ZAP delivered the first Smart car ‘Americanised’ by ZAP through its first authorised dealerships to a Nevada couple that had placed an order for the Smart car over a year ago.
Loss-making Smart recently dropped plans to make a sport utility model – Formore – which would have been made in Brazil and was supposed to be the brand’s entry model for the US market.
ZAP says that the order to DC follows discussions with Smart on selling in the US. Analysts note that a Smart-ZAP tie-up to sell Smarts in the US could carry some business logic, but the size of the order begs the question: how many of the claimed pipeline of advance orders would actually turn into firm orders backed with cash?
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By GlobalData
