DaimlerChrysler Gets Smart

On Saturday, March 25, DaimlerChrysler put an end to months of speculation over the fate of its yet-to-be-profitable smart car brand. The company announced that it would integrate the smart car brand into the Mercedes organization, halt production of the four-door smart forfour, and put all its attention on the sales and development of the iconic two-door smart fortwo city car.

This is good news.

During the past few years, the smart car organization had been trying aggressively to expand its product line by developing larger and higher-powered models while, at the same time, working with alternative drive concepts.

At the Geneva auto show last month, for example, smart highlighted a 210 hp version of the smart forfour. The company also showcased a set of smarts with alternative drives: all-electric, compressed natural gas, and hybrid (the crosstown). These were first introduced at the Frankfurt auto show in 2005.

Although sales have been increasing (smart sold 143,000 units in 2005, up 2.5% from 2004), the future of the division was very much in doubt.

DaimlerChrysler’s decision to focus only on the smart fortwo bodes well for the ongoing development of highly fuel-efficient city cars. The smart fortwo is due for a complete redesign next year (model year 2007), and the potential for alternative drive versions of the new car is high.

The prototype smart crosstown mild-hybrid concept combines an electric motor (with an output of up to 23 kW) and the 45 kW/61 hp gasoline engine from the smart fortwo to reduce fuel consumption by about 15% to about 4.0 liters per 100 km. That gives the crosstown an estimated fuel economy of 59 mpg US compared to the 50 mpg of the standard smart fortwo.

The smart crosstown hybrid system features start-stop functionality; drive assistance from the electric motor during startup, acceleration and gear changes; and regenerative braking.

The crosstown is not smart’s first hybrid version concept. The company introduced a diesel-hybrid concept version of the smart fortwo in 2001. That concept, called the smart hyper drive, used a 20 kW electric motor and reduced fuel consumption to less than 3 liters per 100 km—about 79 mpg US.

DaimlerChrysler’s announced restructuring—to eliminate the separate smart organization and to refocus the brand on its original core vision of delivering a car designed and optimized for urban driving—is smart.

The company has set itself up not only to maximize the chances that smart will be profitable, but also to introduce successfully hybrid and alternative versions of city cars.

Very smart.