Smart car: Is it the next Saturn?

History repeats itself

    Smart's transformation from boutique manufacturer of purpose-built vehicles to the rebranding of cars developed by others follows the same road as General Motors' Saturn.

    When the one-time manufacturer with its own plant in Spring Hill, Tenn. couldn't make it by itself, it turned to marketing cars developed by another GM affiliate, Opel. The scheme didn't work, and Saturn was closed as part of GM's bankruptcy.

    Ironically, Penske had tried to take over Saturn but Nissan pulled out of a deal to supply him with cars. Smart's current U.S. sales boss Jill Lajdziak, is also well-versed in Saturn parallels, having run Saturn before its demise.

    Saturn never made a dime for GM during its 20-year life and may have burned through as much as $15 billion. Although Smart no longer breaks out its financial results, it is unliky that it's ever been a single euro in the black.

    Daimler needs Smart for now to help it meeting government standards for C02 emissions and fuel economy. But nobody associated with the brand can help but wonder whether Smart will be able to avoid Saturn's fate.