A (Slightly) Bigger ForTwo Heads for U.S. Market

Daimler AG's Smart minicar unit has made its tiny two-seat ForTwo city car about four inches wider to help bolster demand in the American market.

The third-generation design, which is due in the U.S. in September, is still less than 9 feet long. The revised model will shed the previous car's unpopular 5-speed automatic manual transmission for a choice between a conventional 5-speed manual and 6-speed automatic.

The ForTwo has been selling in the U.S. at an annual rate of about 10,000 units after peaking at about 25,000 units in 2008. The company will add a convertible and all-electric variant next year.

Heiko Schmidt, who heads product planning for Smart, tells Automotive News Daimler may pull the car from the American market if it fails to sustain unspecified sales targets over the next few years.