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Smart car tires faulted
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March 3, 1999: 10:37 a.m. ET
Avis asks Daimler for new tires on two-seater after German accidents
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LONDON (CNNfn) - Avis, the car rental firm, has asked DaimlerChrysler to refit its Smart cars with winter tires after a series of accidents in Germany fanned fears they might be dangerous, according to a newspaper report Wednesday.
The small, multi-colored Smart car is the result of a collaboration between DaimlerChrysler (DCX) and Swatch, the Swiss watchmaker. Originally dubbed the "Swatchmobile", it was launched in October after a six-month delay over safety concerns.
In November, Daimler bought Swatch's 19 percent stake in the Micro Compact Car venture, which manufactures the Smart. At the time some analysts argued that Daimler was buying the operation only to bury it, and erase some of the poor publicity surrounding the project.
Since then, a series of accidents in Germany indicated drivers could lose control of the car in snow and ice because of the its short wheelbase and rear-wheel drive, further tarnishing the Smart's reputation. The company couldn't be reached for comment.
Not surprisingly, Smart sales have been disappointing, and last month MCC cut its forecast for deliveries this year from 130,00 to 100,000, the Financial Times reports.
Other DaimlerChrysler cars also have had safety problems. In 1997, sales of A-class small cars were suspended for six-months because a road test showed the cars to be unstable. Last week, Daimler recalled 328,500 full-size Dodge Ram vans and wagons in the U.S. because of faulty airbags. And a Pennsylvania jury awarded $58.4 million to owners of various Chrysler makes in a class-action lawsuit over airbag safety. 
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DaimlerChrysler
Avis
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