Final answer:
Option C is the incorrect challenge, as Smart was under the ownership of Daimler AG, not Daimler Chrysler, when considering bringing the Smart car to the U.S. market.
Step-by-step explanation:
Among the challenges in bringing the Smart car across the Atlantic, the options listed: the euro's strength relative to the dollar (A), the end of Daimler Chrysler merger (B), distribution and promotion critical to a successful U.S. launch (E) are all legitimate challenges. However, option C) stating Smart was under the ownership of Daimler Chrysler at the time of bringing it to the U.S. market is incorrect because Smart was indeed under the ownership of Daimler AG (D), making option C the right answer to the question. This challenge does not apply since the ownership situation does not prevent the introduction of the Smart car into the U.S. market.
The competitive automobile industry, with players like Toyota, Honda, Nissan, and Volkswagen, underscores the importance of strong strategy in distribution and marketing in the U.S. market.