Investment bankers, who believe the loss-leading Smart car is an indulgence for DaimlerChrysler, are urging DCX to cut the brand from its stable, despite its politically correct image. Industry analysts at Morgan Stanley are projecting the company will see stock gains from what they say the market would perceive as a responsible fiscal move, despite the roughly $2 billion it would cost to shutter the ailing division. At its current rate of production, they say, Smart would cost DCX as much in losses in just two years. Yes, we get the irony, and no, we won't go for the obvious joke, as per usual.
Mercedes advised to close Smart [Autocar]
Related:
US Orders of Smart Car Pouring In, Says Zap [internal]