Daimler mulls second smart car production site

FRANKFURT, Aug 23 (Reuters) - German car maker Daimler AG is mulling a second production site for its smart brand on the back of surging demand for the minicars, a German magazine reported. According to a report in auto motor und sport, the smart production site in the French city of Hambach is close to reaching its capacity limit. The company is sounding out the option of building another site, with Asia or the United States under discussion as possible locations, the report said quoting company management sources.Daimler was not immediately available for comment. This year, the smart brand is expected to increase unit sales by 30 percent to 130,000 and post a profit for the second time in a row, the magazine said.It quoted a Mercedes spokesman as saying: "As announced Smart reached break-even in 2007 and we expect Smart to make a profit in 2008." Daimler's two-seat, fuel efficient smart cars were on the verge of extinction two years ago but high fuel prices and eco-conscious consumers have driven demand for the minicar especially in the United States. Sales for the smart fortwo in the United States totalled 2,559 for the month of July, bringing total deliveries through July to about 14,000 units since its launch there at the start of the year. (Reporting by Nicola Leske, editing by Mike Peacock)
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