It's not only the fact that there is so much competiotion in that segment. Don't forget that all the smart model are very expensive, at least here in Greece. And there are not many people that wish to spend all that money to buy a smart, with such a weak engine, while they can get a cheaper car, with a more powerful engine. Yet, there are people who wish to spend their money on a well-built (?) city car, and that is the target-group (?) of the brand, but i guess that group is not that big to support the brand.

On the other hand, the Smart ForTwo is a class of it's own, as there is no other car like this. And the weak engine is not a problem, as it is a part of the general philosophy of the car, and that's why the streets are full of ForTwos here...