Report of co-produced Smart car denied Wednesday, September 1, 1999

Stuttgart -- The German-US industrial giant DaimlerChrysler yesterday denied a report which said it had reached agreement with Peugeot-Citroen on co-operation in the production of a new front-wheel drive four-seater Smart car.

A report here in the paper Zeitung said that, under the terms of an agreement, Peugeot would supply the entire platform, engine, chassis and gears for a new model of the city car to be launched in 2003.

A spokesman for Micro Compact Car, the firm which makes the Smart, confirmed talks had taken place.

The newspaper said negotiations between DaimlerChrysler and Peugeot would be finalised by the start of the IAA international car salon which opens on September 16.

Der Spiegel claimed DaimlerChrysler had also contacted Honda and Fiat over possible co-operation in the production of the Smart car. -- Sapa