Daimler announced today that it is investing 200 million euros into the plant that currently builds the Smart Fortwo to make room for Europe’s first series production electric vehicle.
The Smart Fortwo Electric Drive will go on sale in the U.S. next spring for $25,000 before federal tax credits. Smart might have the right mixture on its hands for EV success considering the typically high price is one of the factors keeping many buyers away from going electric.
Then again, that might not turn out to be the case after all. Range anxiety and uncertainty about how well the cars will hold up over time might easily scare people away.
At $25,000, thecar still costs a significant premium over its gas-powered sibling which carries a starting price under $13,000 and has a proven history. Factoring federal tax credits into the cost brings the EV below $15,000, but there’s still the issue of limited charging infrastructure which will, at the very least, keep most Americans second guessing the purchase.