Auto Loan Blog

History of Smart

 

June 16th, 2008

Smart GmbH, a Daimler AG subsidiary, specializes in microcars and superminis. The company headquarters are located in Böblingen in southwestern Germany. The prevailing inspiration for the Smart car was trouble-free parking and the ability to park nose-in in parallel parking spaces. The reduced size of a Smart car would allow two or possibly even three to park in the space of an ordinary vehicle.

Smart’s Origin

The Smart car project was the brainchild of Swatch, a watch-making company, which aimed to be both affordable to younger consumers and utilize novel features, such as hybrid engine technology. Smart is an acronym derived from the lengthier Swatch Mercedes ART. Swatch sought partnership with a reputable automaker to initiate the project. Originally they asked General Motors, but GM declined. Volkswagen agreed to the venture; but, because of economic strains, the Smart car plans were never fully realized. Daimler-Benz ended up partnering with Swatch and they built a factory, “Smartville,” in France for testing and production in the mid ’90s.

The original Smart car was introduced in Frankfurt, Germany in 1997, and Smart cars were soon in nine different European nations. The final design, however, didn’t quite meet Mercedes’ eco-technological expectations, causing the fiscal losses and disagreement that led Swatch to pull out of the project. Sales were less than stellar, and in 2006 Mercedes-Benz absorbed the Smart GmbH after its liquidation. Despite its rough start, you can see Smart cars all over cities like Rome, Barcelona, London, and Paris. They are now available in more than 30 countries across the globe and have sold over 900,000 units.

Availability of Smart Cars

Smart cars are widely used in Japan where the older models, those with engines smaller than 660cc that fit into the Kei car category and are eligible for reduced taxes, are more prevalent. They are also Smart car dealerships in Taipei, Taiwan. Smart cars were quite popular in Canada after they became available, but sales have decreased over time. They were only available in the United States through “grey market” import, but in 2006 it was announced that they would be officially launched in 2008. An electric version is planned for release in the US as well. Smart cars are sold in Mexico and numerous other countries too. Their popularity is rapidly expanding beyond its original European market and across the globe.

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