July 21, 2006 -- German-U.S. carmaker DaimlerChrysler will liquidate its subsidiary Smart GmbH as a separate legal entity by the end of 2006, and will completely integrate its production activities within the group's core unit, Mercedes Car Group (MCG), according to a report from German daily Stuttgarter Nachrichten, citing the current head of Smart, Ulrich Walker.
The move is part of DaimlerChrysler's programme for restructuring of the loss-making Smart unit, and is expected to result in lower costs.

The complete integration of Smart will not affect the employees of the company and the Smart plant in Boeblingen, in southwestern Germany, Walker added. He confirmed his expectations for Smart to generate its maiden profit in 2007, when it will launch the new version of its ForTwo model in the United States.

According to the report, Walker will continue to be responsible for the Smart brand in the future, as member of the management board at MCG.

Source German News Digest
Source Factiva