Smart Car Coming to US in 2008 Launch by DaimlerChrysler

AEN News

Detroit, MI - DaimlerChrysler AG (NYSE: DCX) said it will launch its Smart car in the US in 2008 in a bid to grab a slice of the economy class market for its ultra-compact.

UnitedAuto Group, Inc. got the exclusive distributorship rights for the Smart car in the US market, according to an announcement DaimlerChrysler made Wednesday.

DaimlerChrysler's Chief Executive Dieter Zetsche said last month that a decision on the US dealership agreement would be made in June. "The time has never been better for this and I am convinced that the Smart for two as an innovative, ecological and agile city car will soon become just as familiar a sight on the streets of New York, Miami or Seattle, as it is today in Rome, Berlin or Paris," DaimlerChrysler chief executive Dieter Zetsche said while debuting the Smart car in Detroit.

DaimlerChrysler has not given estimates for US sales of its Smart car but did say in the past that it could sell at least half as many as rival automaker BMW AG of its mini car in the U.S. market, putting the Smart car's figure at 20,000 vehicles.

Last year, the German-US automaker posted a loss after a EUR1 billion restructing of its Smart car business unit, which is under its Mercedes Car Group division. Now, DaimlerChrysler says it will spend EUR1 billion to eliminate one of four Smart car models - the four-seater.

Zetsche said that with gas prices in the U.S. hovering above $3 a gallon in many places, the Smart fortwo could appeal to buyers "looking to save money." According to DaimlerChrysler specs, the fortwo Smart car model can get up to 46 miles per gallon in city driving and as much as 69 mpg on the highway. The two-seat Smart fortwo model is powered only by a three-cylinder gasoline engine. A diesel variant is available in Europe.

Other automakers also have begun selling small, sporty small cars, including Toyota Motor Corp., which has the Yaris, and Honda Motor Co., which sells the Fit.

DaimlerChrysler's Smart business unit launched the fortwo in Canada in 2004, selling about 4,000 models last year, or twice what it had initially forecast. Last year worldwide, Smart sold 143,000 cars.