The recent joint venture between Daimler and Geely may be giving smart a new lease of life, but that doesn’t mean it is out of trouble. TechCrunch reported that the micro car brand is pulling out of United States and Canada, and the company has since confirmed the news, according to several other publications.

“After much careful consideration, smart will discontinue its battery electric smart EQ fortwo model in the US and Canadian markets at the conclusion of model year 2019. A number of factors, including a declining micro car market in the US and Canada, combined with high homologation costs for a low volume model, are central to this decision.

“Mercedes-Benz will carry forward its electric strategy in the US and Canada with the arrival of the new EQC in 2020. MBUSA and Mercedes-Benz Canada will continue to provide owners of gasoline-powered and electric smart fortwo models with access to service and replacement parts via smart and authorised Mercedes-Benz dealers,” the company said in a statement to said outlets.

The brand was introduced to US to great fanfare in 2008 – and in Canada four years before – with sales reaching a high of 21,146 units that year. They fell almost immediately, however, declining further when smart transitioned into an electric-only brand in North America in 2017, ending sales of petrol-engined models.

Other markets won’t be affected by this decision, as smart is going full steam ahead with the development of next-generation models. Designed by Mercedes-Benz and engineered by Geely, these new EVs will be built at a dedicated plant in China, with global sales kickstarting in 2022.