The transnational automaker Daimler announced its intention to stop the production of compact cars brand Smart.
The management of the concern, headed by Ola Kallenius, will decide on the future of the Smart brand by the end of 2019. If the sale of cars does not start to make a profit, their production will be discontinued. According to the CEO of Daimler, the brand has no historical value, and therefore, in order to reduce costs, a decision may be made to completely close Smart.
It is known that Daimler Corporation is already working on new Smart ForTwo and ForFour models together with the French company Renault, but reserves the possibility of withdrawing from the project.
According to the group, 128,802 Smart models were sold in 2018, which is 4.6% less than in 2017. Every year Damiler receives a loss from the production of Smart cars in the amount of 500-700 million euros. It is reported that in Europe by 2020 it will be possible to buy only electric Smart small cars, following the example of the American market, where cars have been sold only in the electric version for the past two years.
Smart is an especially small class car brand. The joint venture was created by Daimler-Benz corporations (now Daimler AG) and the Swiss watch company Swatch with the aim of creating an urban two-seater and very economical Smart mini car. The first car was introduced in 1997.