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

So what's the argument for keeping the DaimlerChrysler division? According to chief executive Jurgen Schrempp, the smart brand

The strong sales in Canada and forecasted strong sales in selected parts of the U.S. should bolster confidence for smart's long-term outlook . (Photo: Shawn Pisio, Canadian Auto Press)

is necessary to expand the company's presence throughout Asia and other emerging markets. That philosophy sounds dangerously similar to the one that spurred on the company's relationship with Mitsubishi Motors despite heavy losses, but at least this time the German automaker will maintain 100 percent ownership of the smart brand, instead of having funds drained by a partner only 37.3 percent owned by DCX prior to Mitsubishi's recent restructuring.

It is entirely possible that a new partner will emerge to assist smart into these emerging markets, and Schrempp seems will to look at all options. "It's self-evident that we have to look at all possibilities to make Smart profitable," he added. While an ambiguous statement, it could hint at more than one might initially think.

For the time being, the smart fortwo is selling reasonably well in Canada and may do likewise in select U.S. jurisdictions under ZAP. While it won't be enough to stop the bleeding, the division's recent successes should bolster confidence for its long-term outlook.