Smart’s upcoming ForFour four-seat hatchback is unlikely to reach the U.S. market due to high costs of homologation. While Daimler executives stated that a final decision hasn’t been made yet, Smart CEO Annette Winkler revealed that the car has not been homologated for the United States.

Winkler said Smart isn’t sure there is a big enough market in the U.S. for the ForFour to warrant the cost of homologation. She added that the redesigned ForTwo, which is roomier than the current model, may be enough to help increase Smart’s U.S. sales.

“There are other regulations to comply with, and to achieve what is needed here costs extra money,” Winkler was quoted as saying by Automotive News Europe at the Detroit Auto Show.

Given that Smart sales fell 7 percent in the U.S. to 9,264 last year, it remains to be seen whether the decision not to bring the ForFour stateside is a wise one.

Mercedes-Benz USA CEO Steve Cannon said the microcar segment in the United States shrunk while the entire market grew last year, which is not a good sign for Smart. And even if the carmaker decided to bring the ForFour to the U.S., Cannon says the increase in annual sales wouldn’t be that significant, probably from 10,000 to 20,000 units a year.

Naturally, this begs the obvious question: why does Daimler continue to sell Smarts in the U.S.? Cannon’s answer is that the company would have to pay compensation to the 92 Mercedes-Benz dealers who sell Smarts if the network was shut down.

By Dan Mihalascu

Note: The car pictured is the Smart Fourjoy Concept

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