Daimler is set to remove all gas-powered Smart models from its U.S. and Canadian offerings later this year, and will instead focus solely on electric models.

Speaking to Mercedes-Benz dealerships in a letter, Mercedes-Benz USA chief executive Dietmar Exler confirmed the news.

“Developments within the micro-car segment present some challenges for the current Smart product portfolio. Therefore, with the launch of the fourth-generation Smart ForTwo electric drive this summer, the Smart lineup will consist exclusively of the zero-emissions Smart electric-drive coupe and cabrio in the U.S. and Canada,” he said.

Automotive News says that the standard Smart ForTwo coupe and cabriolet models will be discontinued after the 2017 model year with production for North America ceasing in April.

The latest generation electric Smart ForTwo only hit the market recently but company spokesman Rob Moran said that electric variants of the previous-gen Smart accounted for up to 30 per cent of the brand’s local sales.

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