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Best-timed new model: ForTwo
Best-timed new model: ForTwo
Germany's Daimler had been talking for years about selling the tiny Smart ForTwo in the United States. The idea sounded just as strange as the car looks. Daimler's Smart division had been a money-loser even in Europe where high gas prices push consumers toward small vehicles.

Why would Americans, who pay less than half as much for gasoline, sacrifice size and practicality to buy the two-seat ForTwo? There seemed to be only one compelling reason: It was so darned cute.

But then, just as the ForTwo began arriving at American ports, gas prices shot up. It arrived just as Americans were most willing to sacrifice roomy comfort for the sake of fuel economy.

The subsequent, and equally startling, drop in gas prices has done nothing to stem sales, though, said Smart spokesman Ken Kettenbeil. Still, by the end of the year, Smart's overall market share was just 0.2% - matching that of Hummer.

NEXT: Worst-timed new model: Borrego

Last updated January 08 2009: 9:21 AM ET
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