Daimler AG has scrapped plans to sell a smart-badged B-segment car in the US based on a Nissan. We first heard news of this plan in October last year where it was reported that Smart USA had signed a MOU with Nissan to collaborate on a new vehicle for the US market. There were even sketches of a car that looked like a Nissan Micra with smart styling.

Mercedes-Benz USA also announced that it would be handling the smart brand itself in the USA from now on, taking over distributorship of the brand from dealer Penske. This is in line with Daimler AG’s global integration of Smart into its Mercedes-Benz cars unit since September last year, with Smart USA being the last country where it has remained separate until now.

But the real reason for the integration of Smart until MB Cars is to help with the upcoming tighter Corporate Average Fuel Economy standards to be implemented in the USA in 2016. CAFE is a strange regulation in the US that averages the fuel economy of all models sold by a company. CAFE is currently at 30.2mpg but in 2016 it will be 39.0mpg.