Daimler to eliminate Smart brand?

Mercedes-Benz would launch a new model to fill the gap.

Daimler's city car-focused Smart brand is not long for this world, according to a recent report. The automaker will allegedly take a one-way trip to the history book when the current-generation Fortwo (pictured) reaches the end of its life cycle.

Smart teamed up with Renault to share the not-insignificant cost burden of developing the current Fortwo. It shares a platform and many mechanical components with the third-generation Twingo. Renault isn't interested in developing a new model with Smart, according to sources who spoke to Automobile Magazine, and Daimler doesn't want to design a new Smart on its own.

If that's accurate, the Smart brand's future looks murky beyond 2026. The magazine adds Daimler would likely fill the gap by adding an entry-level model to the Mercedes-Benz line-up that would cost 15 percent less than the A-Class hatchback. It's tentatively called U-Class, a letter which represents urban and universal.

The U-Class line-up would include at least three models. First, it would arrive as a normal passenger car that would replace the Fortwo and the Forfour. Second, it would spawn a shuttle used for ride-sharing programs. Third, it would also be offered as a panel van for urban deliveries. Every model would come exclusively with electric powertrains.

Smart's saving grace might come from China's Geely, which recently made a sizable investment in Daimler. Geely could replace Renault in the partnership and help fund the development of a fourth-generation Smart.

Daimler hasn't commented on Smart's future.