DaimlerChrysler to axe Smart four-seater model
27 March 2006, BOEBLINGEN, GERMANY - DaimlerChrysler announced Saturday that it was ceasing production of the four-seater version of its loss-making Smart model.
27 March 2006
BOEBLINGEN, GERMANY - DaimlerChrysler announced Saturday that it was ceasing production of the four-seater version of its loss-making Smart model.
Around 300 jobs are expected to be axed at the plant in Boeblingen as a result of the decision to scrap the model, known as the ForFour.
DaimlerChrysler said it would continue series production of the two-seater Smart ForTwo model and fully integrate it into Mercedes organization.
A company statement said the restructuring was needed to make the loss-making micro-car division profitable by 2007.
The cartoon-style Smart ForTwo, introduced in 1998, is a familiar sight in European cities, where it is able to fit into the smallest of parking spaces.
DaimlerChrysler announced a 1.1 billion euros (1.3 billion dollars) restructuring programme in the spring of 2005 in a bid to cut losses in its micro-car division.
A total of 143,000 Smart cars were sold in 2005, but sales dropped 25 per cent in February to 7,700.
Subject: German news