Later this year, Mercedes-Benz confirmed that Daimler AG will no longer offer gasoline-powered Smart cars in the U.S. and Canada after the 2017 model year. The company will now change the microcar brand that might be accessible in electric vehicle form.

Officials from Mercedes-Benz USA, which supervises Smart's sales, told U.S. merchants about the choice in a call and a letter, which obtained by Automotive News.  In a letter, Dietmar Exler, CEO of Mercedes-Benz USA stated that the developments in the microcar segment show a few difficulties for the present Smart product portfolio.

Therefore, the Smart lineup will consist solely of the zero-emissions Smart electric-drive car and cabrio in the U.S. and Canada, and the change is relevant for the U.S. and Canada markets, Exler added. The move reflects on falling deals for the two-seat Smart ForTwo as the low gasoline prices have powered demand for SUVs and crossovers.

According to Automobile, Smart started selling the ForTwo in the U.S. for the 2008 model before presenting an electric model for 2011. Mercedes-Benz representative Rob Moran said that the gas controlled Smart ForTwo car and convertible will be ended after 2017 model. The current arrangement is to stop the production of North America in April while the sales continue until all units will be sold.

Despite the fact that the 2017 model car went at a bargain towards the beginning of December, Smart still has 2016 models in merchants inventory, which runs an extraordinary promotion renting 2016 cars for $89 a month. However, Moran did not give a yearly volume expected for electric-drive models.

Mercedes appears to be certain that the choice will fit the company's objectives for the future. The letter said that the electric is fundamental to its long-term powertrain strategy in the U.S., and the Smart ForTwo electric drive will assume an essential part in carrying it forward.