Daimler AG

Daimler AG Headquarters
Type	Aktiengesellschaft
Traded as	FWB: DAI
Industry	Automotive
Predecessor	Daimler-Benz (1926-1998) DaimlerChrysler (1998-2007)
Founded	1998; 18 years ago (as DaimlerChrysler)
Headquarters	Stuttgart, Germany
Area served	Worldwide
Key people	Dieter Zetsche(CEO and Chairman of the Board of Directors) Manfred Bischoff (Chairman of the supervisory board)
Products	Automobiles, commercial vehicles
Revenue	€129.872 billion (2014)
Total equity	€44.584 billion (2014)
Owner	Institutional shareholders(74.8%) Private shareholders (15.3%) Kuwait Investment Authority(6.8%) Renault–Nissan Alliance(3.1%)
Number of employees	279,972 (2014)
Divisions	Mercedes-Benz Smart
Subsidiaries	List[show]
Website	www.daimler.com

 Daimler AG (help·info) (German pronunciation:[ˈdaɪmlɐ aːˈɡeː]) is a German multinational automotive corporation. Daimler AG is headquartered in Stuttgart, Baden-Württemberg, Germany. As of 2014, Daimler owns or has shares in a number of car, bus, truck and motorcycle brands including Mercedes-Benz, Mercedes-AMG, Smart Automobile, Freightliner, Western Star, Thomas Built Buses, Setra, BharatBenz, Mitsubishi Fuso, MV Agusta as well as shares in Denza, KAMAZ, Beijing Automotive Group, and Renault-Nissan Alliance. The Maybach brand was closed at the end of 2012, but was revived in November 2014 as “Mercedes-Maybach”, an ultra luxury edition of the Mercedes-Benz S-Class. In 2014 Daimler sold 2.5 million vehicles. By unit sales, Daimler is the thirteenth-largest car manufacturer and second-largest truck manufacturer in the world. In addition to automobiles, Daimler manufactures buses and provides financial services through its Daimler Financial Services arm. The company is a component of the Euro Stoxx 50stock market index.

History

Daimler AG is a German manufacturer of automobiles, motor vehicles, and engines, which dates back more than a century.

An Agreement of Mutual Interest was signed on 1 May 1924 between Benz & Cie (founded 1883 by Karl Benz) and Daimler Motoren Gesellschaft (founded 1890 by Gottlieb Daimler and Wilhelm Maybach).

Both companies continued to manufacture their separate automobile and internal combustion engine brands until, on 28 June 1926, when Benz & Cie. and Daimler Motoren Gesellschaft AG formally merged—becoming Daimler-BenzAG—and agreed that, thereafter, all of the factories would use the brand name of Mercedes-Benz on their automobiles.

In 1998, Daimler-Benz and Chrysler Corporation announced the world’s largest cross-border deal ever, valued at US$38billion, and the resulting change in company name to “DaimlerChrysler AG”.

In 2007, when the Chrysler group was sold off to Cerberus Capital Management (see below), the name of the parent company was changed to simply “Daimler AG”.

In November 2014, Daimler announced it would acquire 25 percent of Italian motorcycle producer MV Agusta for an undisclosed fee.

Timeline of Daimler AG

Benz & Company, 1883–1926
Daimler Motoren Gesellschaft AG, 1890–1926
Daimler-Benz AG, 1926–1998
DaimlerChrysler AG, 1998–2007
Daimler AG, 2007–present

Merger with Chrysler

In a so-called “Merger of Equals,” or “Marriage made in Heaven”, according to its then CEO and architect Jürgen E. Schrempp, Daimler-Benz AG and United States-based automobile manufacturer Chrysler Corporation, the smallest of the three American automakers, merged in 1998 in an exchange of shares as Daimler-Benz AG bought 92% of Chrysler, and 8% of Chrysler remained independent and formed DaimlerChrysler AG. The terms of the merger allowed Daimler-Benz‘s non-automotive businesses such as Daimler-Benz InterServices AG, “debis AG” for short, (created in 1989 to handle data processing, financial and insurance services, and real estate management for the Daimler group) to continue to pursue their respective strategies of expansion. debis AG reported revenues of $8.6 bn (DM 15.5 bn) in 1997.

The merger was contentious with investors launching lawsuits over whether the transaction was the ‘merger of equals’ that senior management claimed or actually amounted to a Daimler-Benz takeover of Chrysler. A class action investor lawsuit was settled in August 2003 for US$300 million while a suit by billionaire investor activist Kirk Kerkorian was dismissed on 7 April 2005. The transaction claimed the job of its architect, Chairman Jürgen E. Schrempp, who resigned at the end of 2005 in response to the fall of the company’s share price following the transaction. The merger was also the subject of a book Taken for a Ride: How Daimler-Benz Drove Off With Chrysler, (2000) by Bill Vlasic and Bradley A. Stertz.

Another issue of contention is whether the merger delivered promised synergies and successfully integrated the two businesses. Martin H. Wiggers‘ concept of a platform strategy like the VW Group, was implemented only for a few models, so the synergy effects in development and production were too low. As late as 2002, DaimlerChrysler appeared to run two independent product lines. Later that year, the company launched products that appeared to integrate elements from both sides of the company, including the

2006 Chrysler Crossfire (ZH MY05) coupe.jpg

Chrysler Crossfire, which was based on the Mercedes SLK platform and utilized Mercedes’s 3.2L V6, and the Dodge Sprinter/Freightliner Sprinter, a re-badged Mercedes-Benz Sprinter van.

Sale of Chrysler

Daimler agreed to sell the Chrysler unit to Cerberus Capital Management in May 2007 for US$6 billion. Through most of its history, Chrysler has been the smallest of the “Big 3” U.S. automakers, but in January 2007, DaimlerChrysler, excluding its luxury Mercedes and Maybach lines, also outsold traditionally second place Ford, though behind General Motors and Toyota.

Chrysler reported losses of US$1.5 billion in 2006. It then announced plans to lay off 13,000 employees in mid-February 2007, close a major assembly plant and reduce production at other plants in order to restore profitability by 2008.

DaimlerChrysler had reportedly approached other carmakers and investment groups to sell Chrysler in early 2007. General Motors was reported to be a suitor, but on 3 August 2007, DaimlerChrysler completed the sale of Chrysler Group to Cerberus Capital Management. The original agreement stated that Cerberus would take an 80.1 percent stake in the new company, Chrysler Holding LLC. DaimlerChrysler changed its name to Daimler AG and retained the remaining 19.9% stake in the separated Chrysler.

The terms saw Daimler pay Cerberus US$650 million to take Chrysler and associated liabilities off its hands. Of the US$7.4 billion purchase price, Cerberus Capital Management will invest US$5 billion in Chrysler Holdings and US$1.05 billion in Chrysler’s financial unit. The de-merged Daimler AG received US$1.35 billion directly from Cerberus but directly invested US$2 billion in Chrysler itself.

2011 Jeep Grand Cherokee Laredo NHTSA 2

Since Chrysler’s 2009 bankruptcy filing in the United States, Chrysler has been controlled by Italian automaker Fiat and plans to integrate Chrysler’s products into the Fiat portfolio, such as Lancia and Chrysler’s namesake brand, and Fiat’s namesake brand with Dodge. Despite the fact it had been nearly seven years after the Daimler/Chrysler split, the fourth-generation Jeep Grand Cherokee shares a platform with the Mercedes-Benz M-Class. This also includes the Chrysler LX platform vehicles which initially used Mercedes-Benz components since its 2005 introduction.

Automated cars

On 3 August 2015, Nokia announced that it had reached a deal to sell its Here digital maps division to a consortium of three German automakers—BMW, Daimler AG, and Volkswagen Group, for €2.8 billion. This was seen as an indication that the automakers were interested in automated cars.

Corporate affairs

Management

Dieter Zetsche has been the Chairman of Daimler and Head of Mercedes-Benz Cars since 1 January 2006 as well as member of the Board of Management since 1998. He was former President and CEO of the Chrysler, LLC (previously owned by Daimler AG), he may be best known in the United States as “Dr. Z” from a Chrysler advertising campaign called “Ask Dr. Z”.

Current (2015) members of the Board of Management of Daimler AG are:

• Dr. Dieter Zetsche: Chairman of the Board as well as Head of Mercedes-Benz Cars.
• Dr. Wolfgang Bernhard: Head of Daimler Trucks.
• Renata Jungo Brüngger: Integrity and Legal Affairs.
• Ola Källenius: Head of Mercedes-Benz Cars Marketing and Sales.
• Wilfried Porth: Head of Human Resources and Labor Relations.
• Hubertus Troska: Greater China.
• Bodo Uebber: Head of Finance and Controlling as well as Financial Services.
• Dr. Thomas Weber: Head of Group Research and Mercedes-Benz Cars Development.

The Board of Management total members of seven, after the unexpected resignation on 28 January 2014 of Andreas Renschler, former head of Manufacturing and Procurement Mercedes-Benz Cars & Mercedes-Benz Vans, has been brought back to eight after the nomination on 1 January 2015 of Swedish-born Ola Källenius to the Board of Management as Head of Mercedes-Benz Cars Marketing and Sales.

As of May 2015, the twenty members of Daimler AG’s Supervisory Board are: Manfred Bischoff (Chairman), Michael Brecht (Deputy Chairman), Paul Achleitner, Sari Baldauf, Michael Bettag, Bernd Bohr, Clemens Börsig, Jürgen Hambrecht, Petraea Heynike, Andrea Jung, Joe Kaeser, Ergun Lümali, Sabine Maaßen, Wolfgang Nieke, Bernd Pischetsrieder, Valter Sanches, Jörg Spies, Elke Tönjes-Werner, Frank Weber, Roman Zitzelsberger.

Shareholder Structure

by Ownership

• Institutional investors: 73.7%
• Private investors: 16.4
• Kuwait Investment Authority (Kuwait): 6.8%
• Renault (France): 1.54%
• Nissan (Japan): 1.54%

by Regio 29.7% Europe (excluding Germany), 32.1% German, 25.5% United States, 6.8% Kuwait, 5.4% Asia, 0.5% Others.

EADS shareholding

As of March 2010, Daimler owned a 22.5% share of EADS, of which the public sector held 40%.

In April 2013, Daimler sold its shares in EADS, and the same year, EADS restructured itself into a new aerospace company named Airbus, into which Daimler AG has no shareholding.

On the side of the public sector, the KfW banking group holds 13%, HGV Hamburger Gesellschaft fur Vermogens- und Beteiligungsverwaltung (State of Hamburg) holds 10%, Hannoversche Beteiligungsgesellschaft (State of Lower Saxony) holds 5%,Bayerische Landesbodenkreditanstalt, Anstalt der Bayerischen Landesbank holds 3.5%, LfA Forderbank Bayern holds 1.5%, Landesbank Baden-Württemberg and Landeskreditbank Baden-Württemberg – Forderbank (L-Bank) each holds 2.5%, and Bremer Investitions-Gesellschaft (State of Bremen) holds 2%.

Leadership

Daimler-Benz AG (1926–1998)

• Wilhelm Kissel (1926–1942)
• Wilhelm Haspel (1942–1952)
• Heinrich C. Wagner (1952)
• Fritz Koenecke (1952–1960)
• Walter Hitzinger (1961–1966)
• Joachim Zahn (1966–1979)
• Gerhard Prinz (1980–1983)
• Werner Breitschwerdt (1983–1987)
• Edzard Reuter (1987–1995)
• Jürgen E. Schrempp (1995–1998)

DaimlerChrysler AG (1998–2007)

• Jürgen E. Schrempp (1998–2006)
  • Robert James Eaton (co-CEO, 1998–2000)
• Dieter Zetsche (2006–2007)

Daimler AG (2007–present)

• Dieter Zetsche (2007–present)
• Annette Winkler (2010–present) CEO, Smart Automobile

North Charleston Expansion

On 5 March 2015, Daimler AG announced a 1,200 jobs package to the North Charleston region for its van plant. This will allow the company to start manufacturing Mercedes-Benz Sprinter vans from scratch in a North Charleston plant to meet demand in North America. Currently, these vans are set up in Germany, then shipped to the United States partially disassembled for reassembly. This is all to avoid import tariffs, a practice that started in 2010. A Daimler official said that the Sprinter’s popularity in North America is making that process less efficient. The North Charleston plant had been employing only 100 workers. The Sprinter is available on the U.S. market as a panel van, crew bus and chassis in several variants with three lengths and roof heights, six-cylinder diesel or gasoline engines. The Sprinter has been assembled and sold in the United States since 2001.

Brands

Daimler sells automobiles under the following brands worldwide:

• Mercedes-Benz Cars
  • Maybach – production ended in 2012
  • Mercedes-Benz
  • Mercedes-AMG
  • Smart

  • Smart (automobile)

     

    small cars Clever Car

    Smart

    open your mind.
    Type	Division
    Industry	Automotive
    Founded	1994
    Headquarters	Böblingen, Germany
    Key people	Annette Winkler CEO, 2010–present
    Products	Microcars
    Owner	Daimler AG
    Website	www.smart.com

    Smart Fortwo

    Smart Fortwo cabriolet

    1993 eco-sprinter and eco-speedster concepts

    A Stack of Smart vehicles in Canberra

    Smart Crossblade

    A Smart Fortwo mhd cabrio (left) and a Smart Fortwo mhd coupe (right)                      2003 Smart V6 Biturbo

     

    Smart Automobile is a division of Daimler AG that manufactures and markets the Smart Fortwo and Smart Forfour. The official trademarked name is stylized as “smart“, with all lowercase letters. Headquartered in Böblingen, Germany, Smart has marketed a range of microcar and subcompact vehicles, with its primary assembly plants located in Hambach, France and Novo Mesto, Slovenia. Annette Winkler has served as Smart’s CEO since 2010.

    Marketed in 46 countries—in Asia, North and South America, Africa, Australia and Europe—production of the Fortwo had surpassed 1.7 million units by early 2015.

    

    The design concept for the company’s automobiles began at Mercedes in the early 1970s and in the late 1980s, associated with Swatch. After a brief period of backing by Volkswagen, the first model was launched by Daimler-Benz in October 1998. Several variants on the original design have been introduced, with the original two-seater called the Fortwo, now in its third generation and available as an electric version.

    The brand name Smart derives from its early cooperative studies with Swatch and Mercedes: Swatch Mercedes ART. In its corporate branding, the company uses a lowercase logotype (i.e., smart) and a logo incorporating the letter “c” for “compact” and an arrow for “forward thinking”.

    Origins

    In late 1982, SMH (makers of the Swatch brand of watches) CEO Nicolas Hayek began developing an idea for a new car using the same type of manufacturing strategies and personalization features used to popularize Swatch watches. He believed that the automotive industry had ignored a sector of potential customers who wanted a small and stylish city car. This idea soon became known as the “Swatchmobile”. Hayek’s private company Hayek Engineering AG began designing the new car for SMH, with seating for two and a hybrid drivetrain.

    While design of the car was proceeding, Hayek feared existing manufacturers would feel threatened by the Swatchmobile. Thus, rather than directly competing, he preferred to cooperate with another company in the automotive industry. This would also relieve SMH of the cost burden in setting up a distribution network. Hayek approached several automotive manufacturers and on July 3, 1991, he reached an agreement with Volkswagen to share development of the new project.

    By 1993, Ferdinand Piëch had become CEO of Volkswagen and he immediately sought to terminate the project with SMH. Volkswagen had already been working on their own “three-litre car”: a car which would consume three litres of fuel per 100 km of driving (the eventual Volkswagen Lupo 3L). Volkswagen’s own concept was believed to be a better business proposition, featuring four seats and more cargo room.

    Hayek had suspected that Piëch would seek to end the agreement with SMH upon his ascendancy to the CEO position; therefore, he discreetly began approaching other car companies with the Swatchmobile project. Rebuffed by BMW, Fiat, General Motors and Renault, he finally reached an informal agreement with Daimler-Benz AG, maker of Mercedes-Benz cars.

    A deal was announced on March 4, 1994, at a press conference at Mercedes-Benz headquarters in Stuttgart that the companies would join forces in founding Micro Compact Car AG (MCC). 49% of the initial capital of 50 million Swiss francs were provided by SMH and the remaining 51% by Daimler-Benz. The company consisted of two subsidiaries: MCC GmbH based in Renningen (a suburb of Stuttgart) which would design the car, and the then-unnamed manufacturing plant. SMH Auto SA, owned by Hayek, would design a hybrid electric drive system for the car, while Hayek Engineering would audit the design and manufacturing.

    The press conference also featured the debut of two concept cars: the eco-sprinter and eco-speedster, styled by Mercedes-Benz’s design studio in California. The cars were similar to the eventual Smart City-Coupé. No mention was made of the fact that SMH had no input in the design of these concepts, and they were badged as Mercedes-Benzes.

    By the end of April 1994, MCC had set up a head office in Biel, Switzerland.

    Company history

    Three co-directors were immediately named to head the new company: designer and engineer Johann Tomforde and financial administrator Christoph Baubin from Daimler-Benz, and marketing manager Hans Jürg Schär, who spearheaded the original Swatch marketing campaigns in the mid-1980s. Tomforde had been working on the Mercedes City Car (coincidentally abbreviated MCC) project at Daimler-Benz since 1990, which produced theeco-sprinter and eco-speedster concepts as well as the Vision-A concept, which eventually became the Mercedes-Benz A-Class.

    One of the first controversies at MCC was the name of the car itself. Nicolas Hayek insisted it retain Swatch in some way: “Swatchmobile”, or “Swatch Car”. Daimler-Benz refused, and pushed for a neutral name. The final selection was Smart, an acronym that had been previously used internally by MCC for Swatch Mercedes Art.

    By May 1994, the co-directors had identified 74 potential sites for the assembly plant. The final site was announced on December 20, 1994: Hambach, France. The purpose-built factory quickly gained the nickname “Smartville“.

    In 1995, Tomforde devised a modular system of assembly for the car, insisting suppliers design and assemble, and even install their own modules onto the final car, at the new plant using their own employees thus reducing the cost overhead for the parent companies and divesting MCC of the financial and legal liabilities for those parts. It also provided a fiscal framework whereby MCC could share the development costs with the suppliers, rather than having to fund the entire project themselves. MCC secured contracts with suppliers to design and supply almost all parts of the car: seats by Faurecia, interiors by VDO, chassis and door modules by Magna, door panels by Dynamit Nobel, and suspension by Krupp.

    Despite offloading a substantial amount of the development on the suppliers MCC required more capital. Recapitalization by Daimler-Benz increased their share of ownership in the company to 81% by 1996, leaving SMH with only the remaining 19%.

    The assembly plant opened on October 27, 1997, with a ceremonial ribbon-cutting by then-French President Jacques Chirac and German Chancellor Helmut Kohl. Introduction of the new Smart city-Coupé was planned for March, 1998, however dynamic instability of the prototypes prompted Daimler-Benz to announce postponing the launch until October, 1998. Johann Tomforde was replaced as chief engineer by Gerhard Fritz. Fritz lowered the centre of gravity, widened the track, stiffened the suspension, changed the steering, and added ballast weight to the front of the car in order to increase its stability in emergency avoidance manoeuvres (notably the Swedish “moose test“).

    The car launched successfully in nine European countries in October 1998, but the final design did not fulfill Hayek’s expectations. Hayek pushed for a hybrid drivetrain but the final product used a relatively conventional gasoline engine. Shortly afterward Daimler-Benz bought out SMH’s remaining stake in the company. MCC was now a wholly owned subsidiary of Daimler-Benz (which soon merged with Chrysler Corporation to become DaimlerChrysler). The office in Biel was shut down and operations were consolidated at the MCC GmbH design centre in Germany. On January 1, 1999, MCC GmbH changed its name to MCC Smart GmbH, and by 2000, it dropped the last vestiges of the association with SMH, becoming Smart GmbH.

    The model line was subsequently expanded to include the Roadster a rear-engine, rear-drive and four-door, four-seat supermini aptly named Forfour (the original City-Coupé was renamed Fortwo to fit the new naming scheme).

    The expansion did not increase profits at the company; Smart GmbH lost nearly 4 billion euros from 2003 to 2006. Plans were enacted to increase the company’s profitability and integrate its operations with Daimler (at the time DaimlerChrysler).

    In 2005, Daimler decided against purchasing a 50% share in the Dutch NedCar plant used to manufacture the ForFour, ending its production. A planned SUV called Formore was terminated as the assembly plant in Brazil was being fitted with machines, and production of the Roadster was discontinued. In 2006, after dwindling sales and heavy financial losses, Smart GmbH was liquidated and its operations were absorbed by DaimlerChrysler directly.

    Smart now operates under the Mercedes-Benz Cars division of Daimler AG, offering solely the Fortwo Coupe and Cabrio models.

    Models

    Apart from the original Smart Fortwo, a sporty Smart Roadster, a limited production of 2000 erstwhile concept Smart Crossblade and a supermini Smart Forfour were also offered. These have now been discontinued. There were also plans to introduce the French made cross-over based on the body of the ForFour and the AWD hardware of the Mercedes C-class with the name of Formore but industrialization of this was cancelled at the 11th hour (even as tooling was being installed in the assembly plant) due to unfavourable exchange rate swings and spending cutbacks driven by losses elsewhere within Smart.

    Production models

    1998–2000 Smart City-Coupé & City-Cabrio* (*from 2000)2002 Smart Crossblade2001-2007 Smart City-C0upé & City Cabrio ( renamed Fortwo in 2004)2001-2004 Smart K (Japan only)2003-2005 Smart Roadster2004-2006 +2014-present Smart Forfour2007-present Smart Fortwo2008–present (in limited trials) Smart Fortwo ED (formerly known as EV)

    Tridion 4 (2001)Concept and unproduced models

    

    

    2005 smart crosstown-hybrid

    • Forvision (2011)
    • Forstars (2012)
    • Formore (never shown)

    Electric versions

    Smart Electric Vehicle

    Two Smart Electric Vehicle cars deployed in the Car2Go carsharing program charging at the Herengracht in Amsterdam

    Main article: Smart electric drive

    An all-electric version of the Fortwo, the Smart Fortwo Electric Vehicle (previously known as Smart ED), began development in 2006. Field testing began in London with 100 units in 2007, and the second generation, with a total of 2,000 units produced, was introduced in 2009 and available in 18 markets around the world for leasing or through the Car2Go carsharing service in San Diego and Amsterdam. Production of the second-generation Smart Fortwo electric drive began in November 2009, in Hambach, France. The Smart EDs have a lithium-ion battery provided by Tesla Motors with capacity of 14 kilowatt-hours (50 MJ). The range of a fully charged battery is up to 135 kilometres (84 miles) under the New European Driving Cycle (NEDC). The U.S. Environmental Protection Agency‘s official all-electric range is 63 miles (101 km) and rated the Smart ED with a combined fuel economy of 87 miles per gallon gasoline equivalent (mpg-e) (2.7 L gasoline equivalent/100 km; 104 mpg-imp gasoline equivalent).

    The third-generation Smart electric drive is scheduled to be launched in the U.S. and Europe by the second quarter of 2013 and Daimler AG plans to mass-produce the electric car with availability in 30 markets worldwide. The third-generation Smart electric drive was unveiled at the September 2011 Frankfurt Motor Show. Key differences with the second-generation model include a more powerful electric motor, which improves acceleration and top speed, a new lithium-ion battery pack that will allow to increase the range to 140 kilometres (87 mi), and an option for quick-charge will be available.

    Electric vehicle conversions

    Main article: Electric vehicle conversion

    Smart electric drive is a Smart Fortwo electric conversion. It has a 40 km range with AGM batteries (100 km with Li-ion batteries)

    Marketing

    Asia

    Japan

    First generation Smart models equipped with engine sizes smaller than 660 cubic centimetres (40 cu in) fit into the Kei car category of cars in Japan, and are eligible for a range of lower taxes. Recent models with a larger engine do not meet the Kei qualifications. Because of high taxation on older cars in Japan, many older used Smart cars are exported to other countries with right-hand drive, like Great Britain and South Africa. An official version of the Smart Fortwo called the ‘Smart K’ has been released to fit the Kei car category. English musician Steve Appleton is featured in a Smart TV commercial, running in Japan during 2010.

    China

    Smart was shown in April 2008, at the Beijing Auto Show. Smart Fortwo started the pre-sales in October 2008 and the Smart vending machine road show in 12 cities from October 2008 to February 2009.

    Hong Kong

    Smart is available in Hong Kong with authorized dealer, Zung Fu Motors.

    Indonesia

    Since 29 November 2010, the Smart fortwo has been available in Indonesia with PT. Mercedes-Benz Indonesia (MBI) as the authorized dealer. MBI originally offered three models: Pure Coupe, Passion Coupe, and Passion Cabriolet, for sale in Jakarta and Bali. Indonesia is also the first country in Southeast Asia to have the Smart Electric Drive, which has been lent to the Government of DKI Jakarta for a one-year period and can be extended for further indefinite period by a signed agreement between PT. Mercedes-Benz Indonesia, PT. Siemens Indonesia, and the Government of DKI Jakarta. The Smart ED will then serve as a pilot project to prove the effectivity of zero-emission car usage that can utilize alternative sources of energy.

    North America

    Canada

    The Smart Fortwo was introduced in Canada in late 2004 and was sold through Mercedes-Benz dealers. Demand was initially heavy with up to 6-month waiting lists in major urban areas in the spring of 2005. The vehicle was especially popular for commuters, small car enthusiasts, people needing light delivery and service vehicles. Demand relaxed slightly in the second year on the market. Sales rebounded with the second generation. Canadian Smart cdis cannot be registered in some states in the US.                        The Smart Fortwo USA

    10,239 Smart Fortwo cdis had been sold in Canada by the first month of 2008. Just before the Type 450 ended production (after which the production had equaled 770,256 cars) Mercedes-Benz Canada built up stock of cdis to tide dealers over until the successor model 451 arrived at the end of 2007.

    The Canadian version of the Type 450 Smart Fortwo cdi sold to 915 customers over three months in 2004, 4,080 were sold in 2005, and 3,023 in 2006. Virtually all the deliveries in 2004 and many of the deliveries in 2005 were to long-time Smart fans who had been waiting for their car for years, which largely accounts for the higher numbers. Through 2007, sales totaled about 2,200 units, with the last few cars being sold in the first month of 2008, when the new Type 451 was already on sale. The Smart’s strongest sales performance ever in Canada was in April 2007, when more than 500 units were sold. Sales are strongest (per capita) in Western Canada, with Vancouver Island and Vancouver being especially hot markets.

    The 2008-2011 (North America) Smart Fortwo Type 451 was totally redesigned, with a 70 HP naturally aspirated Mitsubishi-sourced gasoline engine of 999 cc for North America, up from the 799 cc cdi diesel, with the attendant loss of fuel economy. Smart decided not to import the cdi version of the 451, now with 55 DIN HP, although this decision has led to criticism that the new Smart does not get the fuel economy that many would expect from such a small car. The 799 cc, far more fuel efficient diesel is sold in Europe and some other markets.

    The BRABUS Tailor-Made program is not well advertised in Canada, but at least 16 Tailor-Made cars have been produced to Canadian specification. These vehicles are sent to the BRABUS factory in Bottrop, Germany, where the standard ex-works cars are stripped to the shell and repainted/retrimmed to suit individual customers’ tastes. The first four are the BRABUS Canada 1; three in bright red (including the tridion, two cabriolets and one coupé) and one in all white (a cabriolet). Aside from the special paint, all had every BRABUS part fitted to the body and interior, and the seats, door panels and dashboards were trimmed in black Nappa leather and Alcantara. Three of these cars are in British Columbia and #1-of-1, the Concept vehicle used at Canadian International Auto Shows (a red cabrio with silver alloys), is now in London, Ontario. The next BRABUS Tailor-Made Canadian car was a one-off all orange 451 made for a customer in Vancouver. The other ten were all ordered by Mercedes-Benz Canada as the special “edit10n” of the Canadian BRABUS 451 (with only 70 HP), painted in metallic dark grey with an orange Nappe leather interior. There is also at least one BoConcept 451 built to Canadian standards.

    In 2009, the Government of Canada acquired the European Smart mhd (micro hybrid drive) through partnership with Mercedes-Benz Canada. The project was administered by the ecoTECHNOLOGY for Vehicles(eTV) program within Transport Canada. Goals were to identify the benefits of the start-stop system equipped on the vehicle and how to accelerate the penetration of this technology throughout Canada. See Smart mhd Test Results Report.

    United States

    Smart Fortwo (2nd generation)parked in downtown Washington, D.C.

     

    Before 2008, Smart cars were only available in the United States as “grey market” imports, such as ZAP. U.S. federal regulations allow certain grey market importing in large quantities provided the vehicles are modified and tested to conform to U.S. safety and emissions regulations. Smarts imported into the United States by “The Defiance Company LLC”, modified by G&K Automotive Conversion in Santa Ana, California, and distributed and sold by independent dealerships which were not affiliated with Mercedes. U.S. regulations did not permit the purchase and import of used Smart CDi vehicles from Canada, as the diesel powered Canadian Smarts did not meet American emissions regulations.

    In June 2006, DaimlerChrysler confirmed that Smart would be officially launched in the United States in the first quarter of 2008. The cars were offered through a dealership holding company Penske Automotive Group, which created a new U.S. dealership network for the brand under the name Smart USA. Initially, an updated gasoline powered Fortwo was offered, starting around US$12,000. The new model made its debut at European auto shows in November 2006.

    Hybrid Technologies plans to sell an electric version of the Smart Fortwo model in the U.S. starting at US$35,000. It is being called a hybrid car even though the vehicle is all-electric. The electric Smart will have a range of 120 to 150 miles (190–240 km), a top speed of 80 mph (130 km/h), and charge in 5 to 6 hours using a standard 120 V AC outlet. An electric model is currently undergoing testing in the UK and will only be offered to commercial clients as a trial for the time being. The electric model is scheduled for a U.S. release for the 2012 model year with some test market cars surfacing in 4th quarter 2010.

    A Forbes article has been critical of the stated reasons that Daimler-Chrysler gave for introducing the car in the United States. The Smart fortwo may have claimed to be the most fuel-efficient fully gasoline-engined car for sale in the US, but it actually lags behind the 4-door Mitsubishi Mirage and 2-door Scion iQ (combined 40 mpg and 37 mpg, respectively). According to the EPA, the Smart’s fuel efficiency is lower than the fuel efficiency of some hybrids, including the Ford Fusion, the Toyota Prius, the Honda Civic Hybrid, and the 2-seat Honda Insight, which achieve 41/36, 51/48, 40/43, and 40/43 respectively while the Smart achieves 33 city and 41 highway. The Smart Fortwo is the most efficient car at its pricepoint, since it costs about half as much as a hybrid in the US.

    Car2Go carsharing Smart fortwo (2nd generation) in downtown Washington, D.C.

    The Fortwo has received much attention in the U.S. In its April 2008 issue, Men’s Vogue raised the question, “in a nation where your supersized car is your castle, is the Smart too mini for a man?”.

    To obtain a Smart Fortwo originally required obtaining a “reservation” costing $99 through a dealer or over the internet. The waiting time in January 2009 was approximately 12 months; by July 2009, there was no wait to obtain a vehicle and dealers had them in stock for immediate delivery.

    On January 25, 2010, Smart USA began its first lease program in the US market for Smart fortwo models. The program was scheduled to last through February 28, 2010, but has been extended indefinitely despite lack of leasing sales.

    Penske Automotive Group announced plans February 14, 2011, to relinquish distribution of the Smart Fortwo under Smart USA, to Mercedes-Benz USA. In 2011, Smart USA offered four versions of their Fortwo model. These models include the following: cabriolet, the high-cost convertible version; passion, the mid-cost moonroof version; pure, the low-cost basic version; and electric drive, the electric version.

    On July 1, 2011, Mercedes-Benz USA took over the distribution, sales and marketing of the Smart brand from Penske Automotive Group. Smart is owned and produced by Mercedes’ parent, Daimler AG.

    As of 2015 all models are petrol or electric.

    Mexico

    The Smart Fortwo was introduced in 2003, and were sold in department stores Sanborns and Liverpool. Later Mercedes-Benz dealers started to offer the car. Currently Smart cars are still offered in the country, with only the Fortwo model available.Smart offers the hardtop and convertible models of the Fortwo coupé in Mexico.

    Smart Fortwo has fierce competition with the Hyundai Atos, Pontiac Matiz, and Chevrolet Chevy, which are compacts with low gas consumption at less than half the cost of a Smart but with more space for passengers.

    South America

    Argentina

    In Argentina, the Fortwo has been for sale since 2010 and models (Fortwo Cabrio and Fortwo Coupé) can be bought in dealerships located in the Puerto Madero neighborhood of Buenos Aires.

    Brazil

    In Brazil, the Fortwo has been for sale since 2009 and models (fortwo cabrio turbo, fortwo coupé turbo and fortwo coupé MHD) can be bought in some Smart and/or Mercedes-Benz dealerships in São Paulo, Rio de Janeiro, Belo Horizonte and Porto Alegre cities. The electric, brabus and forfour versions are not available for the Brazilian market.

    Oceania

    Australia

    Since 2003, Smart models have been for sale in Australia. All models that have been produced have been sold in Australia. The Smart Fortwo is currently sold through Mercedes-Benz Dealerships. Mercedes-Benz dealerships around Australia as of 2003 were only offering the Fortwo in the “Pulse” mid-range trim, thus the “Passion”, “Brabus Xclusive” and other trims are not available as yet, until further notice or changes.

    In March 2015 it was announced that the Smart brand would be withdrawn from Australia due to poor sales.

    Europe

    United Kingdom

    Launched in the United Kingdom in 2000, the current range features the Smart Fortwo convertible, and Smart Fortwo Coupé. Smart is available in the UK through Mercedes Benz retailers.

    The UK is host to a number of annual events, both official and unofficial, including the Smart Festival, held annually at Mercedes-Benz World in Weybridge, near historic Brooklands – the world’s first purpose-built motor racing circuit.

    Russia

    The Smart brand debuted in the Russian market in 2012 with the Fortwo model only.

    Safety

    Cutaway showing structure of the Smart Fortwo

     

    The Smart Fortwo uses a very small front crumple zone. The second generation Smart Fortwo has been awarded 4 out of 5 stars in the Euro NCAP Adult Occupant Protection and 2 out of 4 stars in the Pedestrian protection test, but was not tested for Child Occupant Protection as it has no rear seats. The original Smart was awarded 3 out of 5 stars for Adult Occupant Protection. In American tests using a five star rating, Smart cars received a four star safety rating for the driver from a front impact, and a five star safety rating for the driver for a side impact. It also received “Good” ratings for front and side crash protection in Insurance Institute for Highway Safety (IIHS) tests. However, in an April 2009 40 mph frontal offset crash test between a Fortwo and a Mercedes C-Class, “the Smart went air-borne and turned around 450 degrees” causing “extensive intrusion into the space around the dummy from head to feet”. The IIHS rated the Smart Fortwo “Poor,” noting that “Multiple injuries, including to the head, would be likely for a real-world driver of a Smart in a similar collision.”

    The main structure of the car is a stiff structure, marketed as the Tridion Safety Cell, designed to activate the crumple zones of a colliding vehicle. This design creates a safety cell around the passengers, according to the manufacturer.

    Modification

    Smart models have been modified by Brabus of Germany, resulting in Brabus production models, including Smart BRABUS electric drive.

    Other companies modify the Smart Fortwo to use motorcycle engines, such as the Suzuki Hayabusa 1340 cc inline four-cylinder. These cars are known as Smartuki. The most powerful models can accelerate from 0 to 60 mph (0 to 100 km/h) in less than 3.5 seconds. The original car was fitted with a mildly tuned engine and ran 0-60 mph in 4.5 seconds, 1/4 mile standing start in 12.4 seconds and a top speed of 132 mph (212 km/h). It is possible to push the GSXR engine further; nitrous oxide will add another 50 bhp (37 kW; 51 PS) – 80 bhp (60 kW; 81 PS) and there is a turbocharged option.

    

    Crosstown Hybrid (2005)2011 Smart forspeed concept Forspeed (2011)

  • • Car2Go
• Daimler Trucks
  • Commercial vehicles
  •  
    • Freightliner
    • Mercedes-Benz (truck group)
    • 
    • Mitsubishi Fuso
    • 
    • Thomas Built Buses
    • 
    • Sterling Trucks – operations wound down in 2010, but will continue to support authorized dealers and vehicle owners
    • 
    • Western Star
    • 
    • BharatBenz
  • Components
  • 
    • Alliance Truck Parts
    • Detroit Diesel
• Daimler Buses
  • Mercedes-Benz buses
  • Orion Bus Industries – operations winded down in 2012, and closed in 2013
  • 
  • Setra
  • 
• Mercedes-Benz Vans
  • Mercedes-Benz (vans group)
• Daimler Financial Services
• 
  • Mercedes-Benz Bank
  • Mercedes-Benz Financial
  • Daimler Truck Financial
• Others
  • Mercedes AMG High Performance Powertrains (Builds engines for Formula 1 Racing)
  •