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DaimlerChrysler keeps Smart

DaimlerChrysler has decided to retain its loss-making Smart mini-car brand.

The group hired investment bank Goldman Sachs at the end of last year to screen potential interest in the brand. However, Goldman Sachs’ appointment has ended and Smart has been taken off the market.

Daimler cut 600 jobs at Smart brand between July and the end of last year. The cuts, part of a €1.2bn (£0.821bn) plan to restructure the Smart car line.

The world's fifth-biggest carmaker hopes fixed-cost savings of 30% and a sharpened product focus will boost earnings by €600m (£410.5m) and let Smart break even by 2007.

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