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).