Who Builds Smart Cars? The Complete Guide to Smart's Ownership and Manufacturing History

Smart cars are one of the most recognizable vehicles on the road — tiny, boxy, and built for tight urban spaces. But the question of who actually makes them has a more layered answer than most people expect. The brand has changed hands, formed partnerships, and shifted production locations over the decades.

Smart Is a Brand, Not a Standalone Automaker

Smart is a brand, not an independent car company. It operates under the umbrella of a larger automaker and has never built vehicles entirely on its own. Understanding who builds Smart cars means tracing the brand's ownership history and its current manufacturing arrangements.

The Origins: Mercedes-Benz and Swatch

Smart was founded in the early 1990s as a joint venture between Mercedes-Benz (then part of Daimler-Benz) and Swatch, the Swiss watchmaker known for colorful, affordable consumer products. The concept was bold: apply Swatch's modular design philosophy to a micro-car built for European city driving.

The original partnership gave Smart its name — Swatch Mercedes Art. Swatch eventually withdrew from the project before production began, but the name stuck. Mercedes-Benz, through its parent company Daimler AG, took full ownership and launched the Smart Fortwo in 1998.

Daimler AG (later renamed Mercedes-Benz Group AG) remained the sole owner of the Smart brand for over two decades.

The Current Owner: A Geely and Mercedes-Benz Joint Venture

In 2019, Smart's ownership structure changed significantly. Mercedes-Benz Group AG and Geely Automobile Holdings — the Chinese automaker that also owns Volvo, Polestar, and Lotus — formed a 50/50 joint venture to take over the Smart brand.

That joint venture is formally called Smart Automobile Co., Ltd., and it began operating in 2020. Under this arrangement:

• Mercedes-Benz contributes design direction and brand heritage
• Geely contributes manufacturing capability, EV technology, and access to the Chinese market
• Production shifted from Europe to China

This is not unusual in the global auto industry. Joint ventures allow legacy brands to enter new markets or restructure costs without full acquisition.

Where Are Smart Cars Actually Built?

Under Daimler's ownership, Smart cars were manufactured in Hambach, France at a purpose-built plant. That facility produced the Fortwo and the short-lived Forfour.

Since the Geely joint venture took effect, new Smart vehicles are manufactured in China. The plant is operated by Geely's manufacturing network. The first model produced under the new structure was the Smart #1, an all-electric crossover launched in 2022.

The shift to Chinese manufacturing is a meaningful change from Smart's European roots, and it reflects the broader industry trend of automakers using China-based production for electric vehicle development and cost efficiency.

What Models Does Smart Currently Build? 🚗

The new Smart lineup looks very different from the original Fortwo. Rather than a two-seat micro-car, the brand now focuses on compact electric SUVs and crossovers:

The original Smart Fortwo — the ultra-compact two-seater — was discontinued for the U.S. market in 2019, and global production of that model wound down as the brand transitioned under the new joint venture.

Smart in the United States: A Different Story

Smart vehicles are not currently sold in the United States under the new Geely-Mercedes joint venture. As of now, the relaunched Smart lineup is marketed primarily in Europe and China.

The brand's U.S. presence ended when Mercedes-Benz stopped selling the Fortwo in America in 2019. Whether Smart returns to the U.S. market, and when, has not been confirmed. Buyers in the U.S. may still encounter used Smart Fortwos, which were sold here from 2008 through 2019.

The Engineering Behind the New Smart Vehicles

The new Smart electric vehicles are built on Geely's SEA (Sustainable Experience Architecture) platform — the same modular EV platform used by Volvo's EX30 and other Geely-family electric vehicles. This shared platform approach is common in modern automotive manufacturing; it reduces development costs and speeds time to market.

Mercedes-Benz's role is primarily in exterior and interior design, brand positioning, and quality oversight. The vehicles carry Smart branding and reflect Mercedes-influenced styling, but the underlying EV architecture and manufacturing are Geely-driven.

Why Ownership and Manufacturing Origin Matter to Buyers

For buyers researching the Smart brand, understanding who builds these vehicles matters for several practical reasons:

• Parts availability and service network depend on which manufacturer supports the vehicle in your market
• Warranty support is tied to the entity selling the vehicle in your country
• EV platform compatibility affects software updates, charging infrastructure integration, and long-term support
• Resale value can be influenced by brand perception and parent company reputation

The Smart brand has gone from a European micro-car experiment to a Chinese-European EV joint venture in less than 30 years. That's a significant evolution — and the vehicle you're researching today is a fundamentally different product from the two-seater that parked sideways on city streets a decade ago.

Your specific situation — whether you're researching a used Fortwo in the U.S., a new Smart #1 in Europe, or just trying to understand the brand's background — shapes what this history actually means for you.