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DaimlerChrysler to Absorb smart into Mercedes Organization, Cancel smart forfour

DaimlerChrysler has decided the fate of the smart car—it will focus on the smart fortwo car, and cancel the planned production of the smart forfour, subject to negotiation with Mitsubishi Motors and its other partners. Additionally, DaimlerChrysler will integrate smart into the Mercedes organization.

The smart group had unveiled a new limited series, high-performance 210 hp smart forfour BRABUS SBR at the Geneva Motor Show last month.

The company announced that it will launch a new smart fortwo in 2007, with the expectation that the brand will deliver positive financial results from 2007 onward. The smart division had yet to make a profit since its launch in 1998, although sales have been on an upward track, increasing 2.5% in 2005 over 2004 with sales of 143,000 units.

DaimlerChrysler estimates that the costs related to these measures are approximately €1 billion (US$1.2 billion).


Rafael Seidl

It still remains a mystery to many why smart was ever set up as a separate brand to begin with. People would have been just as happy to buy it for the same price with a Mercedes star on the hood, if not more so. The formore was a great car, just way too expensive to achieve the required sales volume.

The fortwo will need to come down in price as well, despite its cult status, especially if it is to be launched officially on the US market (note that Zap! is not affiliated directly with DaimlerChrysler in any way).

Mike GR

Too bad they axed (IIRC) the roadster. That could have been a "halo" car for the brand, though I'm not sure how much real-world help that would have been.


This smartfor2 is way too expensive for its size, do they want to sell it to greenhuggers only or what? Sales droped
probably to exastion of those kind of folks who already bought last year. For 20K CAD you can buy mazda 3 which seats 4 and economically on par with that little box.
I would say it needs to cost 12K CAD max for 'normal' people just to have a second thought of buying one. I have no idea how their bussiness plan is look like but I have a
feeling it has a fundamentally wrong basis.

Hampden Wireless

In Europe the small size itself is an advantage. It can be parked where nothing else can and owners dont have to fear as many super size SUV's. Since it is half the size of a normal car it can be parked sideways to a normal parallel park spot. I saw many of them in europe. They are not more fuel effiecient then some larger cars so mpg is not the selling point.

If it were sold here it would probobly sell a good number of vehicles in NYC and LA. Not sure it would sell well anywhere else in the US. There would always be niche buyers though.


The relatively high cost of the fortwo has kept me from buying one.. putting a Mercedes logo, with it's reputation for stupidly expensive rides, would not improve matters. Nor does putting more horses under the hood.

I think they've missed the mark with Smart cars, going for the 'small car enthusiast' market. Enthusiasts will take interest in whatever small car comes onto the market, so making a shiney bauble of a car and selling it like jewlery only has the effect of alienating the larger 'I want a decent, inexpensive and useful car' market.


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