smart exits Australia

The smart brand of city cars is dead Down Under. The decision to discontinue the Daimler-owned brand in Australia was made just hours ago.

motoring.com.au understand the brand's exit is a direct result of an impasse between Mercedes-Benz Australia/Pacific (MBAu) after pricing negotiations for the new two-model line-up broke down.

MBAu's official statement, just issued, confirmed the new generation MR453 smarts, co-developed with Renault, would not be launched locally.

"The next chapter for the smart brand in Australia is yet to be finalised. At this stage the new smart (MR 453) will not be launched," it said.

MBAu says sales of the current smart generation would continue and authorised Mercedes-Benz dealers would "continue to provide service and support to the smart range".

Allowing some wriggle room, MBAu added: "Mercedes-Benz Australia will continue to monitor potential smart brand opportunities in the market."

smart attracted a small but loyal following Down Under since its local launch in 2003. Initially sold via MBAu's dealer network, the brand moved to an online sales platform in June 2013.

smart debuted Roadster and four-door models Down Under but essentially existed as a one-model brand for much of its tenure here via the fortwo. Potential existed for the forfour to return in its latest generation.

Just one week ago Daimler global boss Dieter Zetsche told motoring.com.au that he was aware of the negotiations and supported the continuation of the brand in Australia.

"When we have the chance to have a reasonable amount of sales for Smart in this market we would like to continue it," Zetsche told motoring.com.au.

MBAu sold just 108 Smarts in Australia in 2014, with pricing pitched at $19,000 driveaway.

motoring.com.au understands that MBAu's business case for smart Down Under required the new generation fortwo to be substantially cheaper and for the new forfour also to undercut the existing pricing model.