March 25, 2006 8:45 p.m. EST
Lynda Fisher - All Headline News Staff Writer
Frankfurt, Germany (AHN) - DaimlerChrysler has announced it will scrap its four door Smart car and shift its focus to the two-door model in an overhaul that will cost the company $1.20 billion and 300 jobs.
The move was announced Saturday, however, terms of the deal were still subject to negotiations with Mitsubishi Motors Corp, which makes the ForFour car at a plant in the Netherlands, according to the Associated Press.
The deal also needed approval from the supervisory board at Daimler.
"DaimlerChrysler AG is planning to focus on the Smart Fortwo to ensure the long-term sustainability of its Smart brand. Thus, the profitability of Smart will be confirmed, with positive results expected from 2007 onward," a statement read.
A new version of the two-seat model will premier next year.