U.S. Smart car sales struggling

2011 Smart ForTwo
2011 Smart ForTwo

Despite the recent relinquishing control of Smart to Daimler, Penske automotive is looking good for the near-term. For 2010, the company earned $108.3 million on revenue of $10.7 billion, while losing about $16 million on Smart USA.

Penske invested heavily in the rights to distribute the Daimler-made cars in 2008 on spec that gasoline would rise. That didn’t happen, and the market has since become flooded with gas-sippers. Penske made the decision to hand distribution back to Daimler this year, and scrapped plans of distributing another Smart vehicle made by Nissan.

All is not lost for Penske however, as the company still distributes heavily in the US and UK. In an recent interview, Roger Penske said that there were other distribution deals on the horizon with two Detroit automakers.

– By: Stephen Calogera

Source: CNNMoney