Project Kimber is set to sell the re-engineered Smart roadster wearing the iconic AC badge.

The licensing deal was brokered with Acedes Holdings, which holds the rights to the AC name, by Kimber Group.

Barrie Wills, chief executive at the Kimber Group, says: “Unlike other sports car brands, the AC name has only ever been used on genuine roadsters. The prestige and the history of the name is phenomenal.”

The car is due to go into production at a new factory in south Wales by mid-2007 with an initial 8,000 units.