(May 1, 2019) Smart is officially exiting the U.S. market and will stop importing its all-electric Fortwo city car to North America after the 2019 model year. A spokesperson for Mercedes-Benz said in a statement that the high cost of homologating the Fortwo for the U.S., combined with slow sales, led to the decision.

Smart had already dropped the gasoline-powered Fortwo from its lineup in 2017, leaving only the electric Fortwo that was recently rebadged as an EQ model to correspond with Mercedes-Benz's new electric sub-brand.

“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.

“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.”

MBUSA and Mercedes-Benz Canada will continue to provide owners of gasoline-powered and electric smart fortwo models with access to service and replacement parts via smart and authorized Mercedes-Benz dealers, the company told TechCrunch.

Source: Media reports