The Smart Unit is hurting the company

The Smart Unit is a next generation car; it has all the bells and whistles that you can imagine. But the Smart Unit has long been a drag on DiamlerChrysler’s finances, and investors are pushing for the Smart series to be done away with because of lackluster sales and below par performance.

However, DiamlerChrysler made this statement regarding the Smart series, "based on current figures, we’re convinced that Smart, will achieve a break-even by 2007, as previously announced," Chief Financial Officer Bodo Uebber told reporters at the company’s Stuttgart headquarters late Monday.

Smart cars have not posted a single cent of profit since 1998, when it was created. That, to me brings a bit of worry. Is something flawed with the design? Is it an eye sore? Is it too expensive? I’m not sure what the problem is, but I do hope DiamlerChrysler can figure something out and not be blinded by ignorant optimism.

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