The revamped Smart ForTwo just went on sale in April and DaimlerChrysler AG today recalled 1,650 due to possible steering problems. The recall was ordered the recall after receiving reports that a locking ring was not in place properly.

Spokesman Hubert Kogel said that all cars have been recalled, repaired and are being returned to their owners.

Smart has consistenly lost money ever since it was founded, but Chief Executive Dieter Zetsche says the company will break even this year. As reported earlier this month, the Smart brand lost nearly 3.9 billion euros ($5.21 billion) between 2003 and 2006.

The loss had an affect on Mercedes Group, which would have recorded a profit of more than 4 billion euros ($5.34) last year. Instead, the Mercedes group posted 2.4 billion ($3.20 billion) euros in operating profits.

Source: The Detroit News

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