A ‘SMART’ Move for DaimlerChrysler and Panoz

DaimlerChrysler AG appears to have found a low-risk way to test whether their three year old “Smart” a tiny two-seater can gain a foothold in the vast U.S. car market. The global auto maker is close to finalizing a deal to export thousands of brightly colored Smarts -- minus the gas or diesel engines -- to American sports-car racing mogul Don Panoz.

Then Panoz will install electric engines and launch a European-style car-sharing program in U.S. cities, where motorists would rent the cars for short periods from "corrals" outside subway stations, office buildings, shopping malls and apartment buildings.

Mr. Panoz, is promising to buy at least 15,000 Smarts in the next five years -- nearly four times the total number of fully electric cars now used in the U.S.

Unlike many free bicycle loan schemes, Panoz plans to charge hourly or monthly rates to drivers who need cars for quick trips.

This represents a radical departure from big auto makers' failed electric-car sales and long-term lease programs.