Penske Auto And Nissan Sign Deal To Sell Smart-Branded Cars

On Wednesday, Penske Automotive Group PAG formed a non-binding agreement with Nisson Motor Co. NI to sell a Nissan manufactured car in the U.S. under the Smart car brand. Penske already sells the tiny two-passenger Smart ForTwo minicar made by Daimler AG, and is interested in a adding a second model to the Smart line in hopes of boosting sales, Jill Lajdziak, president of Penske subsidiary Smart USA Distributor LLC, said in an interview, according to The Wall Street Journal. "We are proud to be a partner with both Daimler and Nissan, two companies focused on bringing high-quality, fuel efficient products to the U.S. market," Chairman Roger Penske said in a statement. Since gas prices have fallen to around $2.50 a gallon, sales have slumped. The first nine months of 2010 saw Penske selling just 4,779 Smarts. Honda Motor Co. HMC offers a slightly larger model called the Fit and sold 4,792 in the month of September alone. "The market has changed since gas prices are low now and we want to grow the portfolio of Smart vehicles," Ms. Lajdziak said. She declined to offer a sales or target for the new model. The new unnamed Smart model will compete with the Nissan Versa and Honda Fit, Ms. Lajdziak said. Pricing for the Fit starts at about $15,000. The two-seat Smart ForTwo starts at about $12,000.