DaimlerChrysler recalls 1650 Smart cars

DaimlerChrysler of Germany said it has recalled 1650 of its revamped Smart fortwo micro cars sold in Europe because of reports of a possible problem with its steering.

The revamped model went on the market in April. The company said it ordered the recall after receiving reports that a locking ring was not affixed properly, which could cause steering problems.

DaimlerChrysler spokesman Hubert Kogel said all the cars had been recalled, repaired and were being returned to owners.

No accidents or injuries were reported and the countries affected were not listed.

Smart, part of the Mercedes Car Group, has consistently lost money since it was formed, but DaimlerChrysler chief executive Dieter Zetsche has said the company expects to break even later this year.

DaimlerChrysler spent nearly 1 billion euros ($A1.58 billion) on restructuring Smart, cut 300 of the 750 jobs at the unit's headquarters and ended production of its larger, four-seater forfour model along with its two-seat Roadster last year.

Last year, Smart sold 102,700 cars worldwide, down from 124,300 in 2005.

The fortwo will go on sale in the US early next year through United Auto Group.

Given its size - just over 2.7 metres long and weighing about 771 kg - the company has stressed safety, noting that a reinforced steel cage and four airbags protect those inside.

Shares of DaimlerChrysler were down less than half a per cent to 67.35 euros in Frankfurt.

Source: AAP 2007