DaimlerChrysler to axe Smart four-seater model

27th March 2006, Comments 0 comments

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.

DPA

Subject: German news

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