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This artist rendition provided by smart USA, shows the proposed smart USA four-seater.
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updated 10/6/2010 3:52:26 PM ET 2010-10-06T19:52:26

Car dealership chain Penske Automotive Group Inc. has signed a deal for Nissan Motor Co. to build a new four-door version of its Smart line of small cars, as it aims to boost sales of the suffering brand.

The new car, set to go on sale in the fourth quarter of 2011, would expand Smart's lineup to include a larger five-seat passenger car in addition to the fortwo minicar, Penske said.

Penske began selling Smart cars in the U.S. in 2008. They initially drew praise for their fuel-efficiency and pint-sized appearance, but sales have been disappointing, with fortwo sales down 62 percent this year. The broader auto industry has seen sales jump 10 percent during the same period.

Penske, which distributes Smart cars in the U.S. for Germany's Daimler AG, is hoping a larger vehicle will help revive the brand.

"The new vehicle will expand Smart USA's product lineup, offering five-seat capacity while maintaining the core principles of efficiency and conservation," Smart USA President Jill Lajdziak said in a statement.

The new Smart car, which hasn't yet been named, will be built on Nissan's "B-segment" platform, sharing its underpinnings with the Japanese automaker's Versa subcompact. The car will be designed and engineered by Smart and Nissan and sold only in the U.S., a Smart spokesman said.

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Nissan spokesman David Reuter said the new model will be built at a Nissan factory in North America but declined to say which one. Nissan has two assembly plants in the U.S. and two in Mexico, but builds the Versa in Mexico.

Penske's tie-up with an outside car manufacturer is similar to the plans it had for the Saturn brand, which it sought to buy from General Motors Co. last year. Penske wanted to save Saturn by recruiting other automakers to build its funky lineup of cars, but owner Roger Penske failed to get a manufacturer on board. GM wound up shuttering the brand.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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