According to a report published by TechCrunch, German auto maker Daimler plans to stop selling its all-electric smart fortwo cars in the U.S. and Canada and introduce it in China. This decision was taken by the company after the small car failed to leave a mark in the North American market.

TechCrunch has reported that the initial source information has been confirmed by Daimler AG and it has said that after the 2019 model year, it would no more sell the Smart brand in the U.S. and Canada.

“After much careful consideration, smart will discontinue its battery-electric smart EQ fortwo model in the U.S. and Canadian markets at the conclusion of MY2019,” a Daimler AG spokesperson wrote in an emailed statement, states the report. “A number of factors, including a declining micro-car market in the U.S. and Canada, combined with high homologation costs for a low volume model are central to this decision.”

The company further said that service and replacement parts would continue to be provided via smart and authorized Mercedes-Benz dealers for the owners of gasoline-powered and electric smart fortwo models by MBUSA and Mercedes-Benz Canada.

It is likely that the final month in terms of new car production of the model in North America would by June because typically, model years begin and end mid-year. The company however would continue with sales of the vehicles till about the end of the current year.

The smart vehicles would however not be killed off completely by Daimler. The company would be transforming the smart into an all-electric brand based in China in a joint venture project with Zhejiang Geely Holding Group of China, Daimler announced in March. A new factory in China would be used for the production of the vehicles according to the joint venture agreement between the auto companies. Daimler had said at the time that global sales for the car are expected to begin in 2022.

The electric vehicle strategy of the company in the U.S. and Canada would be carried forward by the company’s Mercedes-Benz brand and a company spokesperson said that the new EQC would arrive in the North American market in 2020.

Signals that the smart could be pulled out of the U.S. market were being made by the German automaker for some time now. Heavy investments in the urban dweller brand had been made by the company and it was viewed as a deviation of the company design strategy of manufacturing of sleek and stout luxury Mercedes-Benz vehicles. The model however never met up to the annual sales targets in North America that Daimler set for it despite several model variants and offering of an electric version. After the 2017 model year, sale of the gas version of smart in the U.S. and Canada had been stopped by the company.

Other recent moves provided hints that smart’s time in the U.S. was limited.

(Adapted from TechCrunch.com)