smart May Be Riding High in Canada but Sales Suffering in Europe

While DaimlerChrysler cannot currently afford to assist smart to the same level it aided Chrysler Group in recent years past, the

DCX has said the microcar isn't right for the U.S. market, and would rather wait until 2006 before launching its forfour and formore models. (Photo: DaimlerChrysler Canada)

success of the latter has those within the automaker bullish over the microcar division's long-term potential. Chrysler Group, due to strong sales of its new 300 sedan, Dodge trucks and Durango SUV, and Jeep Liberty and Grand Cherokee, has been supporting Mercedes-Benz' redevelopment as of late, an investment the German automaker feels certain will pay off in the long run. smart, however, is an unknown entity.

So why hasn't DaimlerChrysler offered its tiny fortwo city car in the U.S.? Some market analysts believe it would be popular, at least as a novelty, over the short haul in trendy hotspots such as Florida and California. DCX has

ZAP, a California-based company, has obtained regulatory clearance to sell the smart fortwo in the U.S. (Photo: DaimlerChrysler Canada)

said the microcar isn't right for the U.S. market, and would rather wait until 2006 before launching its forfour and formore models.

But American consumers biting at the bit to get hold of the tiny fortwo may have the opportunity after all, at least those living in California. ZAP, a golden-state company, obtained regulatory clearance to sell the smart fortwo in the U.S., and has aspirations of finding good homes for up to 15,000 of the two-seaters.

In a statement, Alex Campbell, spokesman for the Santa Rosa, California-based distributor said, "You look at all the interest in hybrids and cars like the Mini Cooper, and we saw that there was a market here for these automobiles."