Ulrich Walker, head of DaimlerChrysler’s Smart division, has restated profit targets for the small car company.
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Speaking at the launch of the new Smart Fortwo in Madrid, he said that Smart will report a loss this year, according to dpa-AFX. The company can expect to be profitable the following year.
Walker would not give any firm figures, but he did say that Smart is hoping to attract new customers to the brand with the new Fortwo. Some 770,000 units of the original Fortwo models were sold since its launch in 1998.
Despite the success of the original two seater model, Smart failed to meet financial expectations and has recorded heavy losses in recent years. This is partly due to an unsuccessful attempt to expand the brand’s model range, which resulted in the company having to be restructured and 1,000 jobs being lost.
The launch of the new model marks a turnaround point for the new company. The new model has reportedly been designed to be produced at 50% of the cost of the earlier model. In addition it will be introduced onto the US market, where it will be sold exclusively by a handful of dealers in key urban centres such as New York, Los Angeles and San Francisco.
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By GlobalDataWalker said the profit target also stands for the US market. “We will make a profit in the USA,” he said.
