Daimler to Offer Rental Option for Smart EV

Starting next month, U.S. buyers of Daimler AG's electrified Smart ForTwo city car will have the choice of renting the vehicle's battery separately, Automotive News Europe reports.

The company tells the online newspaper that 19 in 20 Smart EV customers in Europe have opted for the plan since it debuted there last autumn. U.S. pricing has not been announced, but the car's battery in Europe rents for €65 (about $85) per month.

Daimler will sell the ForTwo EV in the U.S. for about $25,800. The battery is covered by a four-year, 50,000-mile warranty. The rental option is intended to soothe would-be buyers worried about the cost of replacing the battery. The program will give customers a new battery if the capacity of the original unit drops below 80%.

Smart has made roughly 1,000 ForTwo EVs since the model went into production in Hambach, France, last June. It aims to boost annual output to 6,000 units this year and hopes to sell or lease 2,000 of the cars in the U.S. this year.

The electrified Smart ForTwo is propelled by a 55-kW electric motor and 17.6-kWh lithium-ion battery. The car has a top speed of 75 mph and a range of about 90 miles.