Is the battery fully charged? It's known to mess with SMG if the battery's not in tip-top shape.
However, I suspect your buddy's car is just suffering from a sensor issue - namely, the hood / boot / driver's door sensors.
If SMG detects that any of those aren't closed properly, the SMG gear indicator light will flash - check that the bonnet is closed securely and sitting flush, and also check that the bonnet sensor hasn't popped out of its mounting bracket. The bonnet sensor is the most common cause, so start with that first.