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.


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.

Copyright © 2006, DaimlerChrysler AG