PARIS – The Smart experiment appears to be winding down. Since Daimler-Benz AG's 1994 investment in Micro Compact Cars AG with Nicholas Hayek, the Swatch watch executive, Smart has had a big reputation for innovation – and has been a big headache for Mercedes-Benz. Arrival of Forfour cut into sales of Fortwo (above). Der Spiegel, the German news magazine, says the brand lost €600 million ($780 million) in 2004, citing an unnamed executive, raising cumulative losses to €2.6 billion ...

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