Industry Report: DaimlerChrysler to Shut Down smart?

Top DCX Execs Support Smart but Some Insiders Want it Killed

Some car companies have the worst luck, and smart (deliberately lower case), DaimlerChrysler's innovative micro-car brand, is

Some car companies have the worst luck, and smart, DaimlerChrysler's innovative micro-car brand, is one of them. (Photo: Shawn Pisio, Canadian Auto Press)

one of them. The original ambition, to make an environmentally-friendly two-seat city car, turned sour after original collaborators Hayek (promoters of Swatch watches) parted company. Since then, it has been an uphill battle for the diminutive smart brand.

It seems that there hasn't been a trouble-free day for the Micro Car Company (its original name; MCC for short) since it was formed. The worst problem that the company faced was overcoming the challenge of the vehicle's inherently poor dynamics.

Prior to the car's sale, it, like the Mercedes-Benz A-Class, was subjected to

With a minor update in 2003, the City Coupe became the fortwo. (Photo: Shawn Pisio, Canadian Auto Press)

Europe's infamous 'elk' avoidance test that found it unstable. When such was confirmed by a subsequent rollover, the tiny two-seater was recalled to solve the problem.

The then-named City Coupe quickly underwent a series of changes to deal with the problem. Engineers slowed the steering rack, increased the width of the tires and implemented the TRUST electronic stability control system to counter the car's high centre of gravity. The emergency fix saved the car, but set DC back several hundred million dollars, and precious months.