Smart rallies in a sales U-turn

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Nowhere is its reversal of fortune more dramatic than in America, where its sales this year are double what its makers expected.

High fuel prices and a move away from gas-guzzling 4x4s are credited with the renaissance of a car that was almost scrapped.

In 2005 and 2006, Stuttgart-based Daimler recorded more than $3 billion (£1.6 billion) in restructuring costs for the division that produced the two-seater. Frustrated executives at one point vowed to sell the division or kill Smart if they couldn't fix the money loser.

But now Smart USA has sold more than 14,000 cars in the US, about double what Daimler expected, and there is a year-long waiting list.

Worldwide, Smart sales are up 57% this year, to 81,300 vehicles, and Daimler has added shifts at its main production plant in France.