The tea leaves aren’t looking good for Smart, the Mercedes-Benz brand that makes small city cars: sales are cratering, and one of its partners may leave.
The brand is currently transitioning to become all electric, but that may not save it because small cars are especially hard to make profitably.
And even more especially if your platform partner Renault is considering ending the deal when the current Twingo reaches the end of its product cycle around 2026. The Twingo and Smart ForFour ride on the same rear engine, rear wheel drive platform, and are built side by side at Renault’s factory in Slovenia.
Sales have been poor for Smart in the US and Canada for some time, so the company decided to make Smart an EV only brand. But because the Smart ForTwo EQ only has an EPA range of 58mi (93km), sales are down 63.6% in the US. Ouch.