Could an extra pair of doors and a back seat expand the appeal of Smart's cars, the fortwo model shown here with CEO Dave Schembri?

Could an extra pair of doors and a back seat expand the appeal of Smart's cars, the fortwo model shown here with CEO Dave Schembri?

The French-based automaker, Smart, could be in for a much-needed expansion of its line-up, industry sources report, with the maker’s parent, Daimler AG now in talks with the French carmaker, Renault.

Initial reports out of Europe, quoting a source close to the negotiations, suggest that the partnership would likely result in the addition of a 4-door minicar to the current Smart line-up.  Right now, the Daimler subsidiary only produces variations of the two-door fortwo model.

Smart has struggled for years to come up with a winning formula, despite the steady growth in the global small car market.  The company was originally conceived as a partnership between what was then Daimler-Benz and Swatch, though the Swiss-based watch company dropped out before production began on the original version of the fortwo.

In the following years, what became DaimlerChrysler, and then Daimler AG struggled to reverse steady losses, first adding models like the Smart roadster, and then the forfour, a 4-seater developed as part of an abortive joint venture with Japan’s Mitsubishi Motors.  Both were abandoned, in 2006, as part of a restructuring of the Smart brand intended to finally stop the financial bleeding.

The automaker also tossed plans to produce a mini-compact SUV, specifically designed for the U.S.

About the same time, Smart finally committed to bringing the remaining product, an updated version of the fortwo, to the critical U.S. market.  But rather than set up its own distribution network, Daimler licensed American entrepreneur Roger Penske to take on the marketing and sales operation.

Initially, sales exceeded forecasts, especially during last year’s fuel price spike, but volumes settled back, in late 2008, reflecting both lower fuel prices and mixed reviews of the fortwo, many of which faulted the 2-seater for its relatively modest mileage, as well as the behavior of the vehicle’s shifter.

Not all versions of the fortwo are being imported into the States, with the Penske distribution network notably excluding the higher-mileage fortwo diesel.

It remains unclear, according to sources, whether Smart plans to bring the proposed 4-door to the U.S.

Smart is also developing a battery-powered version of the fortwo minicar.

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