Daimler intends to “kill” the Smart brand

Daimler intends to “kill” the Smart brand

March 26, 2019 0 By autotimesnews

Daimler will refuse the Smart brand if it does not start making a profit. The losses since the start of the mark in 1998 were billions of euros, and the decision will be taken by the end of this year.

Handelsblatt, referring to insiders inside the company, writes that the new head of the Daimler AG group, Ola Kallenius, believes that Smart has no historical value, and he “will hesitate to kill the brand if it is needed to reduce costs.” This policy is related to Daimler’s desire to turn into a provider of electric vehicles and a maker of electric cars, which will require significant investment and, consequently, lower costs.

To reduce costs, Daimler is already developing Smart ForTwo and ForFour together with Renault. However, the French company can abandon the partnership in the near future, reports anonymous sources.

According to the results of 2018, the total sales of Smarts amounted to 128 802 copies, which is 4.6% less than a year earlier. Annual losses – 500-700 million euros.