+ Click to Enlarge A DONE DEAL: Roger Penske of United Auto (left) and Smart president Ulrich Walker at the signing of the distributor agreement for the United States.

November 3, 2006
By Matt Moore

Frankfurt, Germany – Smart will get an American "green card" in early 2008.

Boeblingen-based Smart, part of DaimlerChrysler AG’s Mercedes Car Group, has signed a general distributor agreement with United Auto Group chairman Roger Penske to market the two-seat Smart ForTwo in the United States.

Smart president Ulrich Walker said: "This is absolutely the right car in the right place at the right time. It embodies the unique combination of a lifestyle and design-orientated vehicle that is ecologically appealing."

The agreement covers all aspects of the car's sale in the US, including sales, service and launch. The first Smart dealers will be announced in the second half of 2007 and the cars will hit showrooms during the first quarter of 2008 for less than $15 000 (about R110 000).

Smart prices in South Africa start at R122 000.

United Auto will be responsible for developing and maintaining a dealer network of 30-50 outlets across the country but mainly on densely populated areas.

Smart launched the ForTwo in Canada in 2004; in 2005 it sold about 4000 there, double the initial forecast. Smart sold 143 000 cars worldwide in 2005, a small increase on the 139 000 of 2004.

Early in 2006 DaimlerChrysler chief executive Dieter Zetsche said high fuel prices, congested roads and the constant search for parking made the ForTwo an ideal car for urban America.

DaimlerChrysler has spent nearly €1-billion (R9.5-billion) on restructuring Smart, cut 300 of the 750 jobs at the company's HQ and stopped production of its larger, four-seater ForFour model. – AP