DaimlerChrysler does not plan to shut down or sell its loss-making Smart brand of compact cars, the new head of Smart, Ulrich Walker, said in a letter to staff.
He was reacting to the German-American car-maker's finance chief, Manfred Gentz, who told a conference call last Thursday that the group was examining its options for Smart, given what he called its "disappointing" financial performance.
"It is true that Smart is still not earning money, but the existence of Smart is not at stake," Walker, wrote to his staff. "Giving up the Smart brand or selling our business is not being discussed. (Chief Executive) Juergen Schrempp and (Mercedes Car Group head) Eckhard Cordes confirmed this to me personally in conversations yesterday," he added.
Smart has not made money since it was launched in 1998, and its deteriorating performance helped drag down third-quarter operating earnings at Mercedes Car Group.