Daimler will decide on the future of its money-losing Smart brand by the end of this year, German business paper Handelsblatt reported.
Daimler, which sells the Mercedes-Benz and Smart brands, is losing patience with losses at its microcar brand, the paper said.
Daimler's incoming CEO, Ola Kallenius, who succeeds Dieter Zetsche in May, has "no history with Smart" and "no scruples about killing the brand if necessary," the paper quoted a company insider as saying.
https://europe.autonews.com/automakers/daimler-decide-smart-future-year-end-report-saysSmart's global sales fell 4.6 percent to 128,802 last year.
Evercore ISI said it would welcome the discontinuation of the brand, which it estimates loses 500 million euros to 700 million euros annually.
"We can't see how a German microcar business can generate a profit, costs are simply too high," Evercore said in a note to investors.