Who makes smart cars?

Smart Cars: Who's Behind The Wheel?

29/01/2015

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In the bustling world of automotive manufacturing, certain brands carve out a unique niche. The Smart car, with its diminutive size and distinctive design, is a prime example. Often seen zipping through city streets with an almost comical agility, these compact vehicles have captured the imagination of urban dwellers and eco-conscious drivers alike. But when you see a Smart car on the road, you might wonder, 'Who actually makes these clever little machines?' The answer, like many things in the modern automotive landscape, involves a fascinating history of collaboration and strategic ownership.

Who makes smart cars?
smart Automobile Co., Ltd. is a 50/50 joint venture between Mercedes-Benz AG and Geely Automobile Group Co., Ltd. The joint venture creates synergies to turn smart into a leading provider of premium and connected electric vehicles. The all-new compact SUV smart #1 is the first car of the new generation of fully electric smart cars.
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The Genesis of Smart: A Vision for Urban Mobility

The concept of a car designed specifically for the challenges of urban driving – tight parking spaces, congested roads, and fuel efficiency – had been brewing for some time. The driving force behind the initial development of what would become the Smart car was none other than the Swiss watchmaker, Swatch. Yes, you read that right! Nicolas Hayek, the visionary CEO of Swatch, was instrumental in conceptualising a small, efficient, and stylish city car.

Hayek envisioned a vehicle that would be more than just a mode of transport; it would be a statement. He wanted a car that could easily navigate narrow streets, park in impossibly small spaces, and offer an environmentally friendly alternative for short urban commutes. His initial idea was to collaborate with an established car manufacturer to bring this vision to life. Several major automotive players were approached, but it was Daimler-Benz (now Daimler AG) that ultimately entered into a partnership.

The Daimler-Swatch Collaboration: A Unique Partnership

In the early 1990s, Daimler-Benz and Swatch joined forces to develop and produce this new breed of car. The goal was to combine Swatch's flair for design and consumer appeal with Daimler's engineering prowess and automotive manufacturing expertise. This collaboration was ambitious and innovative, aiming to create a truly unique product that blended automotive technology with a lifestyle brand.

The project, initially known as the 'Swatchmobile', underwent several design iterations and technical challenges. The partnership aimed to leverage Swatch's understanding of consumer trends and Daimler's established reputation for quality and safety. However, the collaboration eventually encountered difficulties, primarily stemming from differing visions and the immense costs associated with developing a new vehicle platform from scratch. By the late 1990s, Swatch had withdrawn from the project, leaving Daimler to carry the torch.

Daimler Takes the Helm: The Birth of the Smart Fortwo

Despite the dissolution of the Swatch partnership, Daimler-Benz remained committed to the project. They continued the development and, in 1998, the first Smart car, the Smart Fortwo, was officially launched. The name 'Smart' itself was derived from the original collaboration, combining 'Swatch' and 'Mercedes-Benz' (Daimler's luxury car division), with 'Art' representing the design aspect.

The Smart Fortwo was an instant sensation, albeit a niche one. Its incredibly short wheelbase, rear-engine, rear-wheel-drive configuration, and revolutionary parking capabilities made it stand out. It was designed from the ground up to be the ultimate city car, offering unparalleled maneuverability and a distinctive aesthetic. The early models, while innovative, also faced criticism regarding their ride comfort and automated manual transmission. However, Daimler continued to refine the concept through subsequent generations.

Smart as a Brand Under Daimler AG

For many years, Smart operated as a distinct brand within the Daimler-Benz (later Daimler AG) umbrella. This allowed the Smart marque to maintain its unique identity and focus on its core mission of urban mobility. Daimler invested heavily in research and development, ensuring that Smart vehicles continued to evolve, incorporating new technologies and addressing early criticisms. The introduction of the Smart Roadster and the Smart Forfour (a four-seater variant) further expanded the brand's appeal, though these models had varying degrees of success.

The Smart brand became synonymous with compact, efficient, and stylish personal transportation. Its ownership base often consisted of individuals living in densely populated urban areas who valued its practicality and distinctive character. The company also experimented with electric versions of its vehicles, recognizing the growing importance of sustainable mobility.

The Geely Era: A New Chapter for Smart

In a significant development that reshaped the brand's future, in 2019, it was announced that Daimler AG would form a 50/50 joint venture with the Chinese automotive giant, Geely Holding Group. This new entity, known as Smart Automobile Co., Ltd., was established to develop, produce, and market electric Smart vehicles for the global market.

This partnership marked a pivotal moment for Smart. Geely, which already owns Volvo, Lotus, and a significant stake in Mercedes-Benz, brought its extensive manufacturing capabilities, technological expertise, and a strong foothold in the rapidly growing Chinese market. Daimler, through its Mercedes-Benz brand, continued to contribute its design and engineering know-how, ensuring that the premium and stylish essence of Smart would be preserved.

The joint venture's strategy is to reposition Smart as a leading brand in the premium electric compact car segment. The focus is squarely on electrification, with plans to launch new models that are fully electric. This new direction aims to leverage the strengths of both parent companies to create a new generation of Smart cars that are not only urban-friendly but also technologically advanced and sustainable.

Key Players in Smart's History: A Summary

Company/IndividualRolePeriod
Swatch (Nicolas Hayek)Conceptualisation and initial development partnerEarly 1990s
Daimler-Benz / Daimler AGDevelopment, manufacturing, and sole ownershipLate 1990s - Present (with joint venture)
Geely Holding GroupJoint venture partner for electric vehicle development and production2019 - Present

What Does This Mean for Smart Cars Today?

The joint venture with Geely signifies a renewed commitment to the Smart brand and its future. The focus on electric vehicles aligns perfectly with global trends towards sustainable transportation. The new generation of Smart cars is expected to be built on a new electric architecture, offering improved performance, range, and technology.

While the core philosophy of creating compact, agile, and stylish urban mobility solutions remains, the partnership with Geely is set to inject new life into the brand. We can anticipate a more dynamic product line, potentially with a greater emphasis on connectivity and advanced driver-assistance systems, all while retaining the characteristic Smart DNA.

Frequently Asked Questions about Smart Cars

Q1: Is Smart still owned by Mercedes-Benz?

A1: While Mercedes-Benz (part of Daimler AG) initiated the Smart brand and remains a partner through the joint venture with Geely, Smart now operates as a 50/50 joint venture between Daimler AG and Geely Holding Group. The new entity focuses on developing and producing electric Smart vehicles.

Q2: Where are Smart cars manufactured?

A2: Historically, Smart cars have been manufactured in various Daimler production facilities. Under the new joint venture with Geely, production is expected to be streamlined, with a significant focus on manufacturing in China for global markets, alongside potential continued production in Europe.

Q3: What is the future of the Smart brand?

A3: The future of Smart is centered on becoming a leading global brand for premium electric compact cars. The joint venture with Geely aims to develop a new generation of fully electric Smart vehicles that are technologically advanced, stylish, and sustainable, catering to the evolving needs of urban mobility.

Q4: Who invented the Smart car?

A4: The initial concept and vision for the Smart car were driven by Nicolas Hayek, the CEO of Swatch. He partnered with Daimler-Benz to bring the idea to fruition, leading to the eventual launch of the Smart Fortwo.

Q5: What makes Smart cars unique?

A5: Smart cars are renowned for their incredibly compact size, exceptional maneuverability, and distinctive design. They are specifically engineered for urban environments, offering solutions for tight parking spaces and congested streets. The brand's focus on efficiency and, more recently, electrification further sets it apart.

Conclusion: A Legacy of Innovation

From its ambitious beginnings as a collaboration between a watchmaker and an automotive giant, to its current status as a joint venture poised for an electric future, the Smart car has always been about challenging conventions. Daimler AG laid the groundwork, and now, in partnership with Geely, Smart is embarking on an exciting new chapter. The iconic little car that revolutionized urban parking is set to continue its journey, evolving to meet the demands of a changing world, one smart, electric mile at a time.

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