If you’ve ever seen a tiny, almost cartoonishly small car zipping through a city street, you’ve probably spotted a Smart car. A common question for anyone intrigued by these unique vehicles is, who makes the Smart car? Smart cars, known for their ultra-compact design, were originally a joint venture between Mercedes-Benz and Swiss watchmaker Swatch. The answer has evolved over the years, leading to some confusion. This article will clear that up and give you a complete picture of the brand’s fascinating journey.
Who Makes The Smart Car
The straightforward answer is that the Smart car brand is owned by Mercedes-Benz Group AG. However, the manufacturing and ownership story is more layered than a simple one-company operation. For most of its life, Smart was a microcar brand under the Daimler AG umbrella (which was renamed Mercedes-Benz Group in 2022). Production of the famous two-seater Fortwo and four-seater Forfour models was handled in partnership with Renault at their joint factory in Hambach, France.
Today, the story has taken a sharp turn toward electrification and a new global partnership. The Smart brand is now a joint venture between Mercedes-Benz and Geely, a major Chinese automotive group. This collaboration is focused exclusively on designing and building all-electric vehicles, marking a complete rebirth for the Smart nameplate.
The Original Vision: Swatch And Mercedes-Benz
The idea for Smart began not in a traditional car company, but with Nicolas Hayek, the visionary behind Swatch watches. In the early 1990s, Hayek imagined an affordable, eco-friendly, and stylish city car that could be as customizable as a Swatch watch. He dubbed the concept the “Swatchmobile.” Seeking a manufacturing partner with automotive expertise, Swatch eventually teamed up with Daimler-Benz (now Mercedes-Benz Group).
This partnership led to the founding of Micro Compact Car AG (MCC) in 1994. The first vehicle, the Smart City Coupé (later renamed the Fortwo), rolled out in 1998. It featured a unique “tridion safety cell” and was designed to be parked perpendicularly in tight spaces. While Swatch’s involvement diminished after disagreements, the playful, innovative spirit of the original concept remained.
Mercedes-Benz Takes Full Control
By the early 2000s, Mercedes-Benz had acquired full control of the Smart brand. It became a dedicated division within the DaimlerChrysler group, focused on urban mobility solutions. Under Mercedes, Smart expanded its lineup beyond the iconic two-seater.
- The Fortwo: The core model, constantly refined over three generations.
- The Forfour: A slightly larger, four-seat version developed in partnership with Mitsubishi and later Renault.
- The Roadster: A short-lived, sporty two-seater convertible.
- The Crossblade: An extreme, roofless and doorless variant.
Despite its cult following, the Smart brand struggled with consistent profitability for Daimler. The high cost of its specialized manufacturing and niche appeal made it a challenging business case in a market dominated by larger, more conventional cars.
Manufacturing Partnerships With Renault
To share costs and improve efficiency, Daimler entered a strategic alliance with the Renault-Nissan group in the 2010s. A key part of this deal was the shared production of Smart and Renault vehicles. The second-generation Forfour and the third-generation Fortwo were built alongside the Renault Twingo on the same platform at the Smartville factory in Hambach, France. This partnership was crucial for keeping Smart alive during a difficult financial period.
The Electric Pivot And The Geely Joint Venture
Seeing the future of urban mobility as electric, Smart began its transition early. It launched the electric drive version of the Fortwo in several markets. However, the true transformation came in 2019. Daimler AG and Zhejiang Geely Holding Group announced a 50/50 joint venture to reinvent Smart as a fully electric brand.
This move combined Mercedes-Benz’s design and brand expertise with Geely’s advanced electric vehicle architecture and knowledge of the Chinese market, which is the world’s largest for EVs. The old Hambach plant was sold to Renault, and production was moved to China.
Smart’s New Era: #1 and Beyond
The first product of this new joint venture is the Smart #1, a stylish, compact all-electric SUV that debuted in 2022. It’s a dramatic departure from the tiny Fortwo, representing a new direction for the brand.
- Design: Led by the Mercedes-Benz design team, ensuring a premium look and feel.
- Engineering: Built on Geely’s Sustainable Experience Architecture (SEA), a dedicated EV platform.
- Production: Manufactured by Geely in their state-of-the-art factories in China.
- Global Sales: Marketed and sold in Europe and Asia initially, with plans for expansion.
The upcoming Smart #3, a slightly larger coupe-style SUV, continues this new family of vehicles. The brand is no longer just about the smallest car on the road; it’s about premium, tech-forward electric urban mobility.
Where Are Smart Cars Made Today?
The manufacturing location for Smart cars has completly shifted. Historically, the heart of Smart production was the Smartville plant in Hambach, France. This facility was renowned for its “factory within a factory” concept, where major suppliers assembled modules on-site.
Since the Geely joint venture, all new Smart electric vehicles are produced in China. Primary production happens at Geely’s facilities in Xi’an and Zhangjiakou. These plants are equipped for high-volume EV manufacturing and adhere to global quality standards set by both Geely and Mercedes-Benz. This move leverages China’s dominant EV supply chain and manufacturing efficiency.
Who Owns Smart Car Now?
As of the current structure, the Smart brand is co-owned equally by two corporate giants:
- Mercedes-Benz Group AG (50%): Provides design, brand equity, and global marketing expertise.
- Zhejiang Geely Holding Group (50%): Provides the EV platform, manufacturing, and strong market access in Asia.
The joint venture, headquartered in China with global operations, oversees all aspects of the brand’s strategy, development, and sales. This partnership gives Smart a unique position in the competitive electric vehicle market.
The Future Of The Smart Brand
The future of Smart is unequivocally electric and global. The brand has pivoted from a niche microcar producer to a contender in the compact electric crossover segment. With the backing of two industrial powerhouses, Smart’s roadmap is ambitious.
Expect to see a expanded lineup of EVs, likely including different body styles and perhaps even a reinterpretation of its ultra-compact city car roots for the electric age. The focus will be on connectivity, advanced driver-assistance systems, and the kind of interior design quality associated with Mercedes-Benz. Their goal is to become a leading brand for premium, compact electric vehicles worldwide.
Frequently Asked Questions (FAQ)
Are Smart cars made by Mercedes?
Yes, but it’s a shared effort. Mercedes-Benz (specifically, Mercedes-Benz Group AG) co-owns the Smart brand equally with Chinese automaker Geely. Mercedes leads the design, while Geely handles the engineering and manufacturing of the new all-electric Smart models.
Is Smart car a German brand?
Smart was founded as a German-Swiss partnership and became a wholly-owned brand of the German Daimler Group (now Mercedes-Benz Group). So, its heritage and design roots are firmly German. However, its current ownership and production are split between Germany and China through the joint venture.
Why are Smart cars so small?
The original vision was to create the ultimate city car. Its tiny size was its main feature, allowing for incredible maneuverability in dense urban environments and the ability to park in spaces much to small for conventional cars. This design addressed traffic congestion and parking shortages in European cities.
Does Smart still make gas cars?
No. Smart ceased production of its internal combustion engine models, like the gasoline-powered Fortwo and Forfour, with the start of the new joint venture. The brand is now committed exclusively to producing fully electric vehicles, begining with the Smart #1.
Where can I buy a new Smart car?
New Smart electric vehicles are currently available in select markets across Europe and China. Sales are expanding to other regions. You should check the official Smart website for your country or contact local Mercedes-Benz dealers, as they often handle sales and service for the new Smart models in many markets.