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.