DaimlerChrysler's Smart Plans For The Future
Posted by www.eMercedesBenz.com on March 27, 2006 at 8:55 AM CST
Welcome back ladies and gentlemen, I hope you all had a magnificent
weekend.
While many of us were out playing, enjoying the lovely spring weather
(at least me anyways), DaimlerChrysler was hard at work, publishing
the latest details of how they intend to make the troubled smart
brand profitable once again.
According to the press release, the main objective for the smart
brand will be to concentrate on the smart fortwo. To do so,
DaimlerChrysler will cancel production of the ailing smart forfour, a
car produced by the Mitsubishi Motor Corporation and hated by DC
investors around the world. In addition, DaimlerChrysler will also
attempt to bolster sales for the smart brand by better integrating
smart into the Mercedes organization.
In total, these measures will reduce the headcount at the smart
headquarters in Böblingen by 300 employees and cost the company
approximately EUR 1 billion. The result, however, is expected to
produce profitability for the smart brand from 2007 onward.
For more info, you can check out DC's full press release below or
visit www.eMercedesBenz.com.
OFFICIAL PRESS RELEASE
Focusing on the smart fortwo
New smart fortwo to be launched in 2007
Cancellation of production of smart forfour intended, subject to
negotiations with Mitsubishi Motors Corporation (MMC) and other partners
Sustainable profitability confirmed
Stuttgart, Mar 25, 2006
DaimlerChrysler AG is planning to focus on the smart fortwo to ensure
the long-term sustainability of its smart brand. Thus, the
profitability of smart will be confirmed, with positive results
expected from 2007 onward.
The planned measures for a further enhancement of the business modell
of smart include the following items:
The clear focus on the smart fortwo;
the intention to cancel production of the smart forfour;
the manifestation of smart and especially the smart fortwo as a long-
term and important part of DaimlerChrysler’s product portfolio;
as well as the complete integration of smart into the Mercedes
organization.
Overall, these measures are likely to result in a headcount reduction
of 300 employees at smart in Böblingen. The smart forfour is produced
by MMC through its wholly-owned subsidiary Netherlands Car B.V.
(Nedcar) in Born, Netherlands. The cancellation of the forfour
production is still subject to negotiations to be carried out with
MMC and all other partners.
The measures described above are still subject to approval by both
the Board of Management and the Supervisory Board of DaimlerChrysler
AG. The cost for DaimlerChrysler related to these measures are
estimated to be in the magnitude of approximately €1 billion.
For more Mercedes-Benz news and information, visit
www.eMercedesBenz.com.