If a Lexus or Jaguar didn't quite fit under the tree this holiday season, cheer up -- there's a car on the way that's almost small enough to gift-wrap.
The Smart, built by DaimlerChrysler AG's Mercedes Car Group, is a two-seat micro-car popular in the crowded cities of Europe that's making its way to the United States. It's the extreme edge of a wave of little cars inspired by the success of BMW AG's Mini Cooper, with Honda Motor Co., Nissan Motor Co. and others poised to bring super-small products to the United States from overseas markets.

The smallest Smart could fit in about half of a typical parking space. DaimlerChrysler plans to sell the cars here beginning in 2006.
(Daimlerchrysler)
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The land of the Hummer and the super-duty pickup has never been friendly to Old World micro-cars, which have a heritage going back to World War II. But with gas prices up and concern spreading about the environment and the availability of foreign oil, some automakers believe there is a U.S. market developing for small, efficient vehicles. As long as they're also cute.
The Smart, with prices that start at 8,000 euros (about $11,000 at yesterday's rates), would be the ultimate test of that market under DaimlerChrysler's plan to bring it here in late 2006. It's the Tom Cruise of the automotive world, a teeny-tiny star with eye-catching looks. How small is the smart? At eight feet long, it could lie on the sofa while you jog to the store. It's four feet shorter than a Mini Cooper. Many motorcycles have bigger engines.
The size is marketed as ideal for navigating city streets. The Smart can park in half a regular space, can meet U.S. safety standards with some minor modifications and gets about 60 miles per gallon of gas.
But the little car is also exceedingly Euro-looking, with an egg-shaped cabin surrounded by plastic panels that can be swapped out for different colors. It is designed by Swatch Group Ltd., known for watches, and built in France. It's hard to imagine getting someone like, say, Donald Rumsfeld to drive a smart. Which raises the question: Is the land of freedom fries ready for Pepe le Car?
"It's very, very, very small," said George Peterson, president of the California-based auto industry research firm AutoPacific Inc. "It's something that will appeal from a uniqueness standpoint because it looks very different. But generally, Americans opt for something bigger and more substantial. I have driven one in Los Angeles out on the freeways, and it's a real challenging thing to do." Peterson says the car rides so low in traffic that "you're making a study of the lug nuts of the truck sitting next to you."
Conscious of Americans' bias for size, DaimlerChrysler plans to debut a new model in the United States called the ForMore. It is, of all things, a miniature sport-utility vehicle. U.S. Smart enthusiasts, many of whom fell for the cars while traveling in Europe, have criticized the company for not bringing the original version, a basic model called the ForTwo.
That interest has led to a burgeoning "gray" market, with two independent importers racing to do an end-run around DaimlerChrysler and bring Smarts straight to U.S. consumers.
"Some time ago, I had to go to Berlin and London, and I was seeing these things and it was like, 'My God, this would be great to have in the city. Why aren't they all over the place?' " said Hilly Kristal, owner of the CBGB punk rock club in New York. Kristal ordered a Smart from JK Technologies LLC of Baltimore, an importer waiting for final clearance from the Environmental Protection Agency to begin supplying ForTwos to several hundred customers on a waiting list.