DaimlerChrysler will administer a harsh dose of medicine to its Smart brand in a bid to jolt the ailing city runaround into financial health.
The automotive group will stop production of the Smart Roadster sports model by the end of the year and axe the Smart SUV project, which aimed to create a new class of small off-road vehicle.
Instead DaimlerChrysler will focus on the core two-seater Smart car and development of a four-seater model in conjunction with Mitsubishi Motors of Japan.
Economies of scale
A key part of the company’s plans is the development of an engine that can meet the requirements of the
DaimlerChrysler said the next generation of three-cylinder petrol engines built for the Smart would also be used by other manufacturers.
‘The resulting economies of scale will substantially improve the cost position of the engine project,’ the company said.
The drastic surgery, which will cost DaimlerChrysler up to e1.2bn (£820m) in restructuring expenses and involve significant job losses, shows what an uphill struggle Smart has been for the group since launching eight years ago.
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