Daimler on Verge of Decision About Smart Brand’s Fate in U.S.

Daimler will make a decision soon on whether to stop selling the Smart brand in the U.S.

“We’re deciding how to proceed with Smart in the U.S.,” Britta Seeger, member of the Daimler board of management responsible for Mercedes-Benz Cars marketing and sales, told MotorTrend at the New York International Auto Show.

It is still an ongoing discussion but a decision is imminent, before summer, she says.

Smart was created in 1998 but has never been a moneymaker. To try to jumpstart it, Daimler announced in 2017 the tiny lineup would go full electric. But global sales fell 4.6 percent to 128,802 globally and in the U.S. many dealers stopped selling the ForTwo. Sales dwindled to 1,276 in the U.S. last year, a precipitous 58-percent fall.

Now Daimler is focusing production and sales on the Chinese market. Last month the automaker announced a joint venture with China’s Geely to build the next generation of micro cars at a dedicated plant in China for global consumption starting in 2022. Details of the deal are still being worked out. The lineup will also expand into the larger B-segment.

Daimler and Geely have explored alliances since Geely Chairman Li Shufu bought a 9.69-percent stake in Daimler in 2018. Seeger and Shufu are two of the six board members for the joint venture that will make the new Smart cars.

Media reports out of Germany have speculated on the death of the brand with the pending retirement of Daimler CEO Dieter Zetsche. Ola Kallenius takes over the top spot on May 22 and does not have the same history with Smart. But at the Geneva Motor Show in March, Kallenius said Smart is the ideal electric car, demand was outstripping supply, and production was being ramped up. “It’s actually the most cost-efficient electric car. For many people in an urban environment it is exactly what you need. We made the conscious decision to say ‘let’s go all electric.’ Quite a brave decision actually.”

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