DaimlerChrysler's Smart Brand Sees Global Sales Up 24 Percent

Smart fortwo Sales Strong in Canada

Earlier this year, a decision to pull the upcoming formore mini-SUV from the Detroit auto show, along with reports claiming

In early April DaimlerChrysler's smart division announced plans to pull the plug on its controversial mini-SUV as well as its cute little sports car. (Photo: DaimlerChrysler Canada)

DaimlerChrysler's smart division was hemorrhaging red ink from high costs and poor European sales, questioned whether the brand would remain part of the German automaker's arsenal (see automotive news section for Feb 24, 2005: Industry Report: DaimlerChrysler to Shut Down smart?)

How bad was it? Last year, smart lost over 600 million euros (937 million CAD; 773 million USD), and the brand has racked up a total of 2.6 billion euros (4.1 billion CAD; 3.3 billion USD) in losses since the brand was launched in 1998.

Such negative rumours were put to rest in early April when DaimlerChrysler announced plans to pull the plug on the controversial mini-SUV as well as its cute little sports car, simply dubbed roadster, and focus its energies towards pulling the brand back from the brink and leading it to break-even status by 2007 (see automotive news for Apr 3, 2005: DaimlerChrysler's Smart Brand Stays the Executioner's Axe).

Now, five months into 2005, reports are surfacing that global sales are on the increase with more than 60,500 units having left dealerships, which shows an improvement of 24 percent over the same period last year.

May was the banner month, with a total of 12,800 smart vehicles delivered around

Time will tell if the fortwo will continue to be popular in Canada after its first year honeymoon is over. (Photo: Shawn Pisio, Canadian Auto Press)

the world. While sales are still low in its home market, Germany, a major boost from Canada, Western Europe and Asia helped sales rise overall.

The high cost of gasoline coupled with the smart fortwo's ultra-efficient 800 cc turbodiesel powerplant, plus it's cute and quirky styling have made it a hit. Time will tell if the fortwo will continue to be popular in Canada after its first year honeymoon is over. While there is no doubt as to its fuel efficiency, its tiny dimensions are unusual for the Canadian market, and only time will tell if the car is merely a fad or a forward thinking example of a future trend.