Smart electric scooter is the last chance for Daimler

After conceding failure in four seat electric cars and two seated models, Daimler AG is turning to a smaller and slower electric vehicles such as scooters.

Next year, Smart brand would add to its lineup an electric-powered scooter, a prototype which reaches a top speed of 45 kilometers per hour. The scooter and a $3,716 electric bike introduced last year are intended to boost Smart’s image as a city-transport specialist rather than just another automaker.

“Smart is Daimler’s answer to the challenges of today’s mega-cities,” brand chief Annette Winkler said to Bloomberg at the unit’s headquarters in Boeblingen, Germany. The goal is to make city life “a little more colorful, cheerful and healthy” she added.

The brand proved a survivor after losing 1.5 million euros since its introduction in 1998. Also company is supposed to add 120 million-euro deficit this year, according to analysts. Daimler is in need to revive sales as soon as possible. For that to happen, company is expanding Smart’s car lineup beyond the diminutive Fortwo. Last year Daimler introduced an electric version of the two-seat model, and as soon as 2014 it may come up with a revamp of the basic Fortwo. Daimler has also teamed up with Renault SA on a new Smart four-seater that’s likely to reach showrooms next year.

Daimler, which doesnt reach break even point of Smart’s earnings, has kept the brand because it can attract younger buyers and helps Daimler meet carbon-dioxide emission restrictions by offsetting bigger Mercedes models.

The growing competition has forced Smart to look beyond cars to differentiate itself. A 2010 prototype of the e-Scooter was equipped with high-end features such as an airbag, anti-lock brakes and a blind-spot assistant that warns the driver of nearby vehicles when changing lanes. Smart declined to comment on details of the production model beyond saying there will be “substantial changes,” spokesman Joachim Kutscher said cited by Bloomberg.

The electric-powered bike, a partnership with MIFA Mitteldeutsche Fahrradwerke AG, features a 250-watt electric motor attached to the rear wheel, a lithium-ion battery pack and a carbon-fiber belt instead of a chain for pedal power. Daimler says it’s pleased with sales of the bike.

Daimler AG shares were up 0.42% after market close and 12.17% on a year to date basis.