The US distributor of the Smart car has raised its 2008 sales estimate for the ForTwo Wednesday, according to Agence France-Presse. The move comes as US automakers hit the skids due to a sharp sales drop in large, gasoline-guzzling SUVs and trucks.

Roger Penske, chairman of the Penske Automotive Group (Smart's sole American distributor) said in the report that sales would rocket beyond the company's original estimate of 20,000 vehicles.

"We expect Smart sales will come in between 24,000 and 27,500 during 2008," Penske said, attributing surging gas prices to the increase in demand. Penske also said that sales could reach the 30,000 to 32,000 range for the 2009 model year, assuming that Daimler AG of Germany can build and deliver enough of the diminutive two-seaters.