Daimler’s Mercedes-Benz USA will take over sales and marketing of the microcar smart USA brand from Penske Automotive Group by the middle of this year, Mercedes-Benz USA and Penske said Monday.

By the end of the transition period around July 1, the number of U.S. Mercedes-Benz dealers selling smart cars will drop to the mid-50sfrom the current 75 at dealerships owned by the Penske group, a Mercedes-Benz spokesman said.

Plans for a Smart five-door hatchback from Nissan Motor Co. have been tabled, said Mercedes-Benz USA.

The next new Smart will be developed by the joint venture of Daimler and Renault/Nissan as a global car.

Penske, the No. 2 U.S. dealership group, has been the exclusive distributor of Smart in the United States for three years.

Smart sales were robust in 2008 as U.S. gasoline prices hit record levels but have lagged the last two years.

The only Smart sold in the U.S. market, the Fortwo, gets 41 miles per gallon in highway driving. Mercedes-Benz USA wants sales of the Smart cars to help boost overall fuel economy performance before stricter new U.S. regulations go into force for the 2017 model year, Mercedes-Benz USA said.

“Aligning smart distribution with Daimler, as it is worldwide, is the logical next step for the smart brand in the U.S.,” said Roger Penske, chairman of Penske Automotive Group. “This alignment will enable the smart brand to grow through the Mercedes-Benz dealership network.”