Different marketing for a different kind of car  

David Schembri '75, '77, president of smart USA, wants drivers to think about their cars differently. "Eighty to 90 percent of the people I see on the roads are commuting alone, and many of them travel in five or seven or even nine passenger vehicles. But if you went to a restaurant alone, you wouldn't order dinner for five. As a society, we need to start thinking more seriously that oil is in fact a limited natural resource."

David Schembri '75, '77, in a smart car showroom

As president of smart USA, Schembri has led the launch of the smart fortwo, the two-seater vehicle that gets 41 mpg on the highway, and there are favorable signs that others share his point of view. smart USA has taken well over 30,000 reservations online for its cars (some made before there were any smart dealers lined up in the U.S.), while expending no budget whatsoever on traditional advertising.

Schembri says, "We've marketed the car in a very different way. Basically, we took the car directly to consumers. Beginning in May 2007, we had three trailers with seven cars each, one in the West, one in the East, one in the Midwest. We went to 50 cities for seven days each and administered over 50,000 test drives."

He adds, "America has never been more ready for a car like this. People have concerns about the environment, high gas prices, urban congestion, and the smart fortwo offers some solutions to addressing those conditions.

"It gets the highest gas mileage of any gas-powered car sold in the U.S. Certainly its size makes it extremely convenient for cities. Just think of all the places on campus you could park a smart."

Another distinguishing feature of the smart car is the personalization available to the consumer. Each car is built to order, according to the future owner's exterior, interior, wheels and audio preferences. The smart's body panels are also interchangeable. A smart owner can trade panels with another smart owner, or buy an extra set, and in a couple of hours, have a car in another color. These attributes reflect the involvement of Swiss firm Swatch, makers of the watches with interchangeable bands, and now co-producers with Mercedes-Benz of the smart. In fact, the "s" in smart stands for Swatch, the "m" for Mercedes, and the rest is "art."

One might not think that a smart fortwo and the University would have anything in common, but Schembri begs to differ. "One of the things that distinguishes our vehicle is personalization—and at U of D, I experienced personalization of education. It was a big college that afforded individual attention and a small college feel."

Schembri always wanted to attend the University. Growing up on Detroit's east side, near City Airport, he knew the University as "the standard of excellence in our state. Growing up in Detroit, as far as I was concerned, everything was within the borders of the city. "

He credits the University's urban setting with making his experience unique: "Sometimes college campuses are limited to just what's on campus. At U of D, your experience expanded way beyond the dorm or classroom."

He still holds a deep affection for the city he grew up in. "I haven't lived here since 1994, but I grew up here, and I lived here most of my life. The city is so alive again, there's people everywhere, great restaurants and stadiums. I have a great love for the city and the University. I feel at home here."

Similarly, working in the auto industry was also always a goal. "Many of us had that goal. My dad was a millhand at General Motors so I was always tuned in pretty closely to the whole atmosphere."

Schembri's advice for business students is straightforward: "Think towards the future. Learn from the past with an eye to the future, because the world changes every day. The delivery of information is instantaneous, so you need to find a way to stay one step ahead. And always, always, always, listen to the customer."

To hear a 2007 presentation by Schembri to College of Business Administration undergraduates, visit the UDMcast.