Daimler to stop selling combustion engine Smart cars in US and Canada, will focus on electric cars

Daimler will quit selling combustion engine Smart cars in the United States and Canada and focus the brand on electric vehicles in both countries, the company stated.

Dietmar Exler, head of Mercedes-Benz USA, stated in a letter to dealerships evaluated by Reuters that the sale of Smart vehicles with gasoline engines would quit when the 2017 model year ends this fall.

It is the latest indication of struggles for small vehicles in the United States.

“Developments within the micro-car sector provide some obstacles for the present smart product portfolio,” Exler wrote. “A dedicated focus on the electric drive in the United States and Canada offers a logical step to support a sustainable, zero emissions future.”

The German automaker will sell battery-powered versions of the Smart Fortwo and Fortwo convertible models in the United States and Canada. The modification does not apply to other markets outside these two regions, Daimler stated.

The relocation was first reported by the Frankfurter Allgemeine Zeitung newspaper.

Mercedes-Benz USA sold 6,211 Smart cars in 2016, 16 percent below over 2015, as U.S. fuel rates have stayed low. That is compared with worldwide sales of Smart top quality vehicles of 144,479. Daimler’s group deliveries, consisting of its premium Mercedes brand, amounted to 2.1 million in last year.