( What would a PEUGEOT/SMART look like? )
FRANKFURT : German-US auto giant DaimlerChrysler hopes to turn around its loss-making Smart unit by establishing a close partnership between the ultra-small car and French car maker Peugeot, the Sueddeutsche Zeitung reported.
DaimlerChrysler hopes to work together with Peugeot to develop two- and four-seater small cars, the newspaper said, quoting sources close to the company.
At the same time, DaimlerChrysler would, in the medium term, end its cooperation with Japanese maker Mitsubishi Motors (MMC) which builds the four-seater Smart in the Netherlands and the Mitsubishi Colt, the newspaper said.
DaimlerChrysler is looking for a partner for the Smart car because unit sales are not sufficient to achieve favourable production costs at present.
The German-US giant had said last month that it intended to hold onto the trendy Smart, but that the unit, which has always made a loss, must improve its performance.
Sueddeutsche Zeitung said the Smart division would run up a loss this year of more than 400 million euros (520 million dollars).
- AFP