California Autos Examiner

Monday, January 23, 2006

DaimlerChrysler To Sell smart To Piaggio (or not)?


In the never ending saga of the smart brand, Automotive News is reporting that DC has made a generous offer to Piaggio to "get smart." Earlier this month, Dieter Zetsche confirmed that Goldman Sachs, aka Agent 99, had been retained to review unsolicited offers; however the terms outlined in the Automotive News story seems to be more solicitation than unsolicited. Here is the purported offer made to Piaggio “very reasonable amount” :

  • The Smart brand
  • Smart’s plant in Hambach, France, and all related tooling
  • Smart’s intellectual property for existing and future vehicles, engines and transmissions
  • A large, low-interest loan to help pay for a relaunch of Smart and to cover future operating losses.

Although Dieter has kept a brave face publicly, stating that smart has until 2007 to turn a profit, it sure seems as if DC is looking for ways to wash its hands of smart. According to the article, the main sticking point is that Piaggio would want to close the Hambach plant and move production to India and neither side, Piaggo nor DC, wants to be the one to break it to the French (they can be so fussy about things like this).

According to this Bloomberg article, Piaggio "denies in the most absolute fashion" any interest in purchasing smart.

Automotive News article can be read by clicking here.

No comments: