smart fortwo to return as #2 model in 2026

When the smart brand was born 31 years ago, its product portfolio focussed on microcars for city use. In fact, its original name was Micro Compact Car AG, a joint-venture between Mercedes-Benz and SMH, the makers of Swatch watches. Its CEO, Nicolas Hayek, had his own company develop a compact car for SMH which was further developed into when Mercedes-Benz came into the picture.

How the smart name was created
The smart name was created by Manfred Gotta, a German businessman. It reflected the combination of Swatch and Mercedes-Benz: Swatch Mercedes ART. Gotta, incidentally, also conceived the Cayenne,  Megane and Twingo, and Vectra names used by Porsche, Renault and Opel, respectively.

The first product, launched in October 1998, was called the smart fortwo and although Hayek had wanted it to have a hybrid powertrain, Mercedes-Benz decided it would have a small 3-cylinder combustion engine – 599 cc (later increased to 698 cc) for the petrol version and 799 cc for the diesel.

Hayek leaves partnership
Hayek had wanted the car to be eco-friendly with electrified powertrains and as there was disagreement on that point with Mercedes-Benz. Hayek withdrew from the partnership and Mercedes-Benz took over the company entirely. Under the German automaker, smart was developed to be a compact car brand with a range of models that were somewhat niche with their size and design.

A new smart
In 2020, Mercedes-Benz and the Zhejiang Geely Holding Group got together to form a 50:50 joint venture company called smart Automobile Co. Ltd. which would take over the smart brand and revitalise it with a new generation of products. Mercedes-Benz Design would handle the design work while Geely would provide the fully electric platform and other technical hardware.

Actually, smart had already started to offer some fully electric models prior to this new partnership but with Geely, the product portfolio would be advanced with newer technologies for the 21^st century. This saw the development of the #1, #3 and more recently, the #5.

project: two
Now, the company has confirmed that it will also offer an-all new, two-seater city car towards the end of 2026, and it will be designated #2, a reference to the iconic fortwo that started the original brand. “The confirmation of our ‘project: two’ and the upcoming launch of the smart #2 marks a milestone moment for the smart brand on a global scale. The decision comes at the right time, as we benefit from the respective strengths of our main shareholders Mercedes-Benz and Geely, and strong backing by new investors, along with the successful market launch of the smart #5,” said Dirk Adelmann, CEO smart Europe.

“The smart #2 will shape a new era of individual urban automobility, especially in classic smart cities like Rome, London or Paris. The new smart #2 will be a unique, authentic addition to the all-electric product portfolio of smart in Europe,” he said, adding that it will open a new chapter in its history and reinvent an icon of urban mobility.

Styled by the Mercedes-Benz Design team, the new model will feature new technology for the segment that was established by the original smart fortwo 27 years ago. The smart #2 will be produced in China and is currently in the final design and development phase.

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BRABUS and smart – not an odd couple