Mercedes-Benz has announced that it will take over sales duties for Smart cars in the U.S., after a tie up with Penske Automotive Group failed.

The small and distinctive Smart car is owned by Mercedes-Benz, but the group sold the U.S. distribution rights to Penske rather than market the car itself in the U.S. International Mercedes showrooms include the Smart brand.

Penske, which owns a string of new and used auto dealerships across the country, largely failed in its promotion of the vehicle. In 2010, when fuel efficiency and cost were top priorities for many Americans, the brand reportedly moved less than 6,000 units.

Now, Smart will find a new home in Mercedes showrooms. The move makes sense for the German luxury automaker, as the Smart Fortwo's 41 mpg fuel economy rating will help Mercedes achieve the U.S.-mandated average of 35 mpgs across all fleets by 2016.

A previous deal between Penske and Nissan to produce a larger version of the Fortwo has now been scrapped, Nissan said.

Smart cars may be difficult to find, but those interested in a fuel-efficient vehicle will have tons of options at New Jersey State Auto Auction, which boasts a wide range of new and used cars for sale.