A new report from Daimler owned Smart reveals that the brand will stop selling a large slice of its current lineup in the U.S. and Canada, with only EV models making up the range after 2017.
This decision was shared to Smart dealers via a letter that was written by Mercedes-Benz USA CEO Dieter Exler, and was not made public. Automotive News however, managed to obtain a copy of this letter which reveals.
“Developments within the micro-car segment present some challenges for the current smart product portfolio,” he explained. “The smart lineup will consist exclusively of the zero-emissions smart electric drive coupe and cabrio in the U.S. and Canada.”
Production of the U.S. spec fortwo will cease in April, but sales will continue until the present inventory runs out, which will give dealerships time to sell them to interested buyers. The first deliveries of the electric models will begin this summer, and expect the full rollout to be completed in early fall.
The announcement does not come as a suprise since the brand’s North American sales have been slowly dwindling over the past few years. According to Automotive News, the brand’s, peak sales year was in 2014, when it sold 10,453 cars. Since that time, sales have plummeted, with the brand only selling 6,211 units.
The first generation Smart car was a compelling idea when it first came out, and it managed to have strong success due to the spike in oil prices in 2008. However, with gas prices lower, and demand for SUVs and crossovers on the rise, many Americans were simply not interested in the pint sized two seater.
Smart’s decision to go EV only after 2017 applies to the U.S. and Canada. Buyers in other markets like Europe, will still have access to the current generation fortwo petrol model, which is powered by a Renault sourced three cylinder engine.