Smart cars are made by smart Automobile Co, Ltd, a joint venture equally owned by Mercedes-Benz AG and Chinese automaker Geely, formed in 2019.
The smart brand began in 1994 as a partnership between Swatch parent company SMH and Daimler-Benz, combining the words Swatch, Mercedes, and Art into its name.
Mercedes-Benz eventually took full ownership of smart before restructuring it into the current fifty fifty joint venture with Geely to focus on electric vehicles.
This guide covers who owns smart today, its founding history, where smart vehicles are built, its current lineup, and why the brand left the United States market.
Table of Contents
Who Owns Smart Cars?
Smart Automobile Co, Ltd is a joint venture formed in 2019, equally owned by Mercedes-Benz AG and Zhejiang Geely Holding Group, each holding a 50 percent stake.
This structure replaced the earlier arrangement where Mercedes-Benz, then part of Daimler, owned smart outright after buying out its original Swatch partner.
The joint venture is headquartered in Ningbo, China, reflecting the shift toward Chinese manufacturing and Geely engineering resources for smart current lineup.
| Company Name | smart Automobile Co, Ltd |
| Ownership Split | Mercedes-Benz AG (50 percent), Geely (50 percent) |
| Headquarters | Ningbo, China |
| Founded | 1994, as Micro Compact Car AG |
| Global CEO | Tong Xiangbei |
| Original Founders | SMH (Swatch) and Daimler-Benz |
| US Market Status | Discontinued after the 2019 model year |
| Ownership Type | Equal joint venture |
When Was Smart Founded and Who Started It?
The smart brand originated in 1994 through Micro Compact Car AG, a joint venture between SMH, the Swiss company behind Swatch watches, and Daimler-Benz.
Swatch chief executive Nicolas Hayek conceived the idea of a tiny, efficient city car and pushed Daimler-Benz to help engineer and manufacture it.
The first smart car, the fortwo, launched in 1998, built at a dedicated plant in Hambach, France that Daimler-Benz constructed specifically for the brand.
Smart Ownership Timeline
SMH and Daimler-Benz partner to develop the smart concept.
Production begins at the dedicated Hambach, France plant.
Daimler-Benz buys out the remaining SMH stake in smart.
Mercedes-Benz discontinues smart sales in the United States after the 2019 model year.
Mercedes-Benz and Geely agree to form a fifty fifty joint venture to relaunch smart as an electric brand.
smart introduces the number 1 electric SUV, built using Geely engineering and Mercedes-Benz design input.
How Does Smart Compare to Mini and Other City Cars?
Smart original fortwo competed most directly against small city cars aimed at tight urban parking and low running costs.
Mini, another small format brand with a complex ownership history, is covered in our guide on who makes Mini Cooper, now owned by BMW rather than a joint venture structure.
Unlike Mini, which kept a single owner through its modern relaunch, smart has moved between full Daimler ownership and the current shared Geely partnership.
That difference reflects how much harder it has been for a genuinely tiny car format to sustain profitable volume compared to a slightly larger premium small car like the Mini.
Smart by the Numbers
Smart production volume remains modest compared to mainstream automakers, reflecting its niche focus even after the shift to electric SUVs.
That fully electric lineup marks one of the most complete brand transformations among the automakers covered in this guide.
Where Are Smart Cars Made?
Modern smart vehicles are built primarily in Xian, China, at facilities operated through the Geely partnership, a shift from the original Hambach, France plant used for earlier gasoline models. Mercedes-Benz own lineup is covered in our guide on who makes Mercedes-Benz.
The original Hambach plant in France, once dedicated entirely to smart production, has since shifted to building other Mercedes-Benz models.
European sales and marketing for smart continue to be coordinated through smart Europe GmbH, based in Stuttgart, Germany.
What Models Does Smart Currently Make?
The number 1, styled as the #1, is a compact electric SUV that represents smart shift away from its original tiny two seat city car format.
The number 3, styled as the #3, is a sportier electric coupe SUV variant aimed at a younger buyer than the traditional smart fortwo audience.
Both current models are fully electric, reflecting the joint venture strategic decision to abandon gasoline engines entirely going forward.
The classic fortwo and forfour models have been phased out in most markets as smart repositions around larger electric vehicles.
Why Did Smart Leave the United States Market?
Mercedes-Benz discontinued smart sales in the United States after the 2019 model year, citing persistently low sales volume and high costs to meet American safety and emissions standards.
The tiny fortwo never found a large audience in the United States, where buyers generally favored larger vehicles even in the compact car segment.
smart has focused its relaunched electric lineup primarily on China and Europe, with no confirmed plans to reenter the United States market.
Is Smart Really Good or Worth Buying?
- New electric models benefit from Geely proven battery technology
- Mercedes-Benz design input gives current models a premium look and feel
- Compact footprint remains practical for crowded European and Chinese cities
- Fully electric lineup aligns with tightening emissions regulations abroad
- Not currently sold in the United States, limiting availability for American buyers
- Brand identity has shifted significantly from its original tiny city car concept
- Limited long term reliability data exists for the newest electric models
- Resale value history is thin given how recently the current lineup launched
The new smart lineup represents a significant departure from the brand original tiny car identity, trading novelty for more conventional electric SUV styling.
Buyers in markets where smart is sold should weigh the newer electric models on their own merits rather than expecting the old fortwo driving experience.
What Is Next for Smart?
smart has announced plans to expand into additional international markets, including a planned return to Brazil with electric vehicles.
The Geely partnership gives smart access to a broader range of battery and platform technology than Mercedes-Benz could easily develop alone for a small volume brand.
Whether smart eventually returns to the United States will likely depend on how successfully the electric SUV lineup performs in China and Europe first.
Frequently Asked Questions About Who Makes Smart
Is Mercedes-Benz still involved with smart?
Yes. Mercedes-Benz AG owns 50 percent of the smart Automobile joint venture, sharing control equally with Chinese automaker Geely.
Can I still buy a smart car in the United States?
No. smart discontinued United States sales after the 2019 model year and has not announced any confirmed plans to return.
Where is the smart number 1 made?
The smart number 1, styled as the #1, is built in Xian, China, through the Geely manufacturing partnership.
Does smart still make gasoline cars?
No. The current smart lineup under the Mercedes-Benz and Geely joint venture is entirely electric.
For current information, visit the official smart website.
Background on company history is available on the smart Wikipedia page, and additional corporate updates are published on the Mercedes-Benz Group newsroom.
The original smart fortwo built a small but devoted following among urban drivers who valued its tiny turning radius and easy parking over interior space or highway comfort.
That niche appeal never translated into the sales volume needed to sustain the brand as a standalone Mercedes-Benz division, which is ultimately why Daimler sought a partner rather than continuing to fund smart alone.
Geely bring both manufacturing scale and electric vehicle expertise honed through its ownership of Volvo and other brands, resources that give smart a stronger foundation for its electric relaunch than it had operating independently under Mercedes-Benz.
For shoppers outside China and Europe, the practical reality is that smart remains unavailable, and there is no confirmed timeline for when or whether the brand will return to dealerships in North America.
I am Jack Neel, a mechanical engineer, researcher, and writer. I created this website to share my knowledge about different brands and products with you. I research the manufacturers behind the brands and provide you with the information you need to make smart buying decisions.