Industry Report: DaimlerChrysler to Shut Down smart?

With a minor update in 2003, the City Coupe became the fortwo (again, lower case intentional) and the company changed names

Not a single year since the brand's introduction in 1998 has the company posted a positive financial statement. (Photo: Shawn Pisio, Canadian Auto Press)

from MCC to smart. At the same time, the brand nearly tripled its lineup, which now included the fortwo coupe and convertible, the sporty roadster coupe and convertible, and the more conventional four-seat forfour.

At what cost? Billions of Euros. Not a single year since the brand's introduction in 1998 has the company posted a positive financial statement. Cash flow is always in the red, and last year was no exception with a posted 600 million Euro loss. The company estimates that it has racked up an unanswered balance sheet of 2.6 billion Euros in total, all of which was footed by once-rich DaimlerChrysler.

Following a surprise introduction at last year's Canadian International Auto Show (CIAS), smart announced that it would

smart halted development of its forfour-based SUV, fearing it could flop in the United States. (Photo: DaimlerChrysler Canada)

bring the fortwo to Canada. Why the surprise? The shocking part was, and is, that it is still unavailable, directly from DaimlerChrysler at least, in the U.S., one of the world's largest automobile markets.

Adding insult to injury, smart halted development of its forfour-based SUV, dubbed the formore, fearing that if it were to flop in the United States the dire results could push DC into even deeper money troubles. The news came only a week prior to the North American International Auto Show in Detroit, and therefore smart's display at this year's event lacked an all-important preview.