According to an AP story out of Frankfurt, Germany on Thursday, [tag]Smart[/tag] GmbH and United Auto Group Inc. have reached an agreement to bring the smart [tag]ForTwo[/tag] to the U.S. market in early 2008.

Smart President Ulrich Walker signed a distribution agreement with United Auto Chairman Roger Penske on Wednesday. The agreement covers sales, service and initial launch of the ForTwo, with the first dealerships expected to carry the car announced in the second half of 2007. Its expected that smart will market the car in highly populated areas using 30 to 50 dealerships.

The ForTwo has a 700cc, ,three-cylinder engine and averages 40 miles per gallon. It should retail for less than $15,000.