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Geely and Mercedes-Benz invest $780 million to make electric Smart cars

BEIJING/SHANGHAI — Zhejiang Geely and Mercedes-Benz on Wednesday said they would each invest $388.77 million (2.7 billion yuan) in a China-based venture to build "premium and intelligent electrified" vehicles under the Smart brand. The 50:50 venture has received regulatory approval and will be based in the Chinese coastal city of Ningbo, the Chinese and German automakers said in a statement. Like Mercedes-Benz, smart is a Daimler marque. The venture will have manufacturing capacity in China and sales operations in China and Germany, the automakers said. Geely will lead in engineering the cars while Mercedes-Benz will take charge of their overall look, they said. The partners will each have three executives on the board of directors, with Geely's Tong Xiangbei becoming the venture's global chief executive. Geely has expanded rapidly through mergers and acquisitions since buying Sweden's Volvo in 2010 from U.S. parent Ford. In 2018, it built a stake of almost 9.7% in Daimler and set up a ride-hailing venture in China with the Stuttgart-based carmaker. Its latest announcement comes just over a month after China's Great Wall and Germany's BMW formed a venture to build electric Mini-branded cars in China, the world's biggest market for electrified vehicles where demand for smaller EVs is on the rise. Related Video:

'New-generation' all-electric Smart ForTwo and FourFour the future of the brand

These are the Smarts that have turned forbidden fruit for our market. The mini-car maker calls the new Smart ForTwo EQ, ForTwo Cabrio EQ, and ForFour EQ a "new generation," but that refers to the comprehensive swap to electric powertrains and elimination of ICE options, not major platform changes. Smart has offered ED "Electric Drive" versions for 12 years, and the current 17.6-kWh lithium-ion battery pack and 159-kilometer (99 miles) don't change. Outside, two distinct grilles have been swapped a single grille placed lower on a more vertical front fascia on the coupe and four-door models. The ForTwo and ForFour get slightly different takes on the grille, however, the ForTwo's smiley face grille flanked by fog lights, the ForFour's trapezoidal grille housing its fog lights. Smart logos formerly placed on the mesh are replaced by small logotype on the front hood on both models, and the mesh can be painted in body color for the first time. Other highlights outside include optional full-LED headlights and new LED taillights. Inside, a new center console provides more and better storage options, able to hold "the largest smartphones" or two cups of coffee with the removable cup holder. Larger phone storage will come in handy since the new infotainment system is entirely phone-based. The Smart EQ app has also been redesigned to incorporate feedback from users, bringing deeper integration with smartphone widgets and the Apple Watch, as well as extra functionality for services like car sharing, parking, finding the car, and even how to pack the Smart most efficiently. More colors join the palette. The ForTwo's body panels and Tridion cell can be dressed in Carmine Red and Gold Beige, and Lime Green is a new hue for the body panels only. The ForFour adds Ice White for the body and the Tridion Cell, Steel Blue for the body alone. A new black and blue fabric interior gets set off with top-stitching and accented trim pieces. And four new wheel designs come in either 15- or 16-inch sizes. A simpler package structure is expected to make ordering easier. The same four trims carry over: Base, Passion, Pulse, and Prime. Three option packages start with Advanced, which includes infotainment, a front armrest, and an audible parking warning system. Stepping up to Premium adds a panoramic roof on the hardtop, a wind-stop on the convertible, a reversing camera, and a stowage net for center console.

Florida Man parks Smart car in kitchen to save it from Hurricane Dorian

JACKSONVILLE, Fla. — It started as a lighthearted challenge between a Florida couple: Can their Smart car fit into their kitchen? The answer: Yes it can. Patrick Eldridge parked his car inside to protect it from the high winds of Hurricane Dorian — and just to prove that he can. Jessica Eldridge said her car was already parked in the garage. But to secure other things in the garage, her husband proposed to park the car in the house. “I said there was no way he could. He said he could,” Jessica said. “So he opened the double doors and had it in. I was amazed that it could fit. He had it in with no problems.” Dorian skirted FloridaÂ’s coast Wednesday, narrowly missing Jacksonville. On Thursday, Dorian was lashing the Carolinas as a Category 2 storm and was headed to the Outer Banks. Earlier in the week as a Category 5, it devastated the Bahamas, where rescue crews have only begun taking the full measure of the damage. With the car in the middle of the kitchen, Jessica Eldridge had to move around it to cook and serve dinner. “IÂ’m hoping he will pull it out pretty soon once the wind dies down,” she said. “There is room, and itÂ’s not in the way, but my dogs are confused by it.”

Smart to discontinue sales in U.S., Canada

UPDATE: A Mercedes-Benz Spokesperson responded to Autoblog with the following statement: "After much careful consideration, smart will discontinue its battery-electric smart EQ fortwo model in the U.S. and Canadian markets at the conclusion of MY2019. A number of factors, including a declining micro-car market in the U.S. and Canada, combined with high homologation costs for a low volume model are central to this decision. "Mercedes-Benz will carry forward its electric strategy in the U.S. and Canada with the arrival of the new EQC in 2020. MBUSA and Mercedes-Benz Canada will continue to provide owners of gasoline powered and electric smart fortwo models with access to service and replacement parts via smart and authorized Mercedes-Benz dealers." The original post follows: Smart, the Daimler brand responsible for those little city cars you see all over the place in European cities, but rarely in American suburbs, has been on an interesting ride in recent years. A couple of years ago, the Smart went electric-only in the U.S. and Canada, where small car sales are waning and EV sales have yet to take off — though it continues to sell internal combustion versions in other markets. Most recently, we heard rumors of a possible demise of the brand before Daimler confirmed that Smart would live on through a joint venture with Geely, and that the next generation will be built in China. Now, as TechCrunch reports, Daimler plans to stop selling the smart brand in the U.S. and Canada after the 2019 model year. Autoblog has reached out to Daimler for confirmation, and will update this story when we hear back. According to TechCrunch, a spokesperson told the outlet, "After much careful consideration, smart will discontinue its battery-electric smart EQ Fortwo model in the U.S. and Canadian markets at the conclusion of MY2019. A number of factors, including a declining micro-car market in the U.S. and Canada, combined with high homologation costs for a low volume model, are central to this decision." The report states that Daimler will continue to support current Smart owners in the U.S. and Canada for both gas and electric markets through their Mercedes-Benz dealerships, which will provide service and parts. According to sales tracking site GoodCarBadCar, sales of the Smart Fortwo in the U.S. have dropped from 6,211 units in 2016 to 1,154 units in 2018. It reports just 231 sales in the first quarter of 2019.

Chicago Car2Go app reportedly hacked, some 100 cars missing

Car2Go launched in Chicago in the summer of 2018, with 400 Daimler cars rolled out on the Windy City streets soon after. But that big fleet just took a big hit: The car-sharing app has now reportedly been hacked, and some 100 cars have been stolen as a result. CBS Chicago is reporting that some of the missing cars have been used to commit crimes. It is yet unclear what the hacking has exactly enabled the perps to do, but the compromised app appears to have opened the doors and given the thieves free rein with easily stolen cars. Within Chicago, there is a 29 square mile area where the vehicles were supposed to be dropped off, but they haven't been limited from exiting that zone at any point. The Chicago Car2Go fleet started out with Smart ForTwo cars and bigger Mercedes-Benz CLA/GLA models; we can imagine the ForTwos are a touch slight for any ram raiding, but an escape car that can vanish in a crowd of other shared Smart cars seems handy for misuse. To address the matter, Car2Go froze its Chicago operations today, saying it is "neutralizing a fraud issue and working together with law enforcement." No personal or confidential user info is said to have been compromised. CBS Chicago's Brad Edwards tweeted today that 12 people have been taken into custody so far, with the story developing as we speak.

Smart brand will be built in China as a Daimler-Geely joint

FRANKFURT/BEIJING — Daimler will build its next generation of Smart electric cars in China through a joint venture with Geely, as a way to increase economies of scale in a market segment that is struggling to turn a profit. China's Geely built a stake of almost 10 percent in Daimler last year, saying it wanted to forge an alliance to develop electric and self-driving cars to better compete against new challengers such as Uber and Google. Daimler said on Thursday it would build the next generation of Smart-branded city cars at a purpose-built factory in China, and planned to share its expertise in manufacturing, engineering and design with Geely. The high cost of electric car batteries has made it hard for automakers to build affordable zero-emissions vehicles, leading several of them to strike alliances with Chinese partners. Daimler's German rival BMW recently unveiled plans to build electric Minis in China, where production costs are low and demand for small electric cars is rising. Daimler and Geely did not disclose financial terms of their deal. The details of the joint venture will be finalized by the end of 2019, they said in a joint press release. Daimler currently develops and builds Smart cars with Renault at factories in France and Slovenia. The Daimler factory in Hambach, France, will be retooled to build Mercedes-Benz cars. Geely has been expanding rapidly through mergers and acquisitions since 2010, when it acquired Swedish carmaker Volvo from Ford. Last year, Daimler and Geely set up a ride-hailing joint venture in China. Daimler's Chief Executive Dieter Zetsche said last month the German carmaker was in talks to deepen its alliance with Geely after the Chinese's group's chairman Li Shufu bought a 9.69 percent stake in Daimler in 2018.

Daimler to sell half its stake in Smart to Geely, Reuters reports [UPDATE]

UPDATE: Reuters on Tuesday reported that Daimler AG is nearing the sale of a 50 percent stake in its small-car brand Smart to China's Geely Automobile Holdings, the Financial Times said on Tuesday, citing three people familiar with the matter. The sale will be confirmed before the Shanghai Auto Show in April, FT said. Both Daimler and Geely declined a Reuters request for comment. Last year, Geely built up an almost 10 percent stake in Daimler in a $9 billion bet by its chairman and became the biggest shareholder in Daimler. Previous story appears below: A new report from Germany's Handelsblatt says Daimler will decide the fate of its money-losing Smart microcar brand by year's end. Dieter Zetsche and his signature white mustache will retire in May, taking his support for the brand with him, and designated successor Ola Kallenius was steeped in Mercedes-Benz's AMG world of performance cars. Meanwhile, Kartrin Adt, a former Daimler Human Resources VP who took over as head of Smart last September, has yet to formulate a strategy to steer the brand to profitability and has reportedly focused on energizing the brand and looking for a partner in China, including with Volvo owner Geely. "Ola has no history with the Smart," Handelsblatt quotes an unnamed insider as saying, and no scruples about burying the brand. It's not the first time the brand's future has been cast into doubt. Last fall, rumors circulated that Renault was likely to pull the plug on its partnership that created the Smart ForTwo and Renault Twingo, which share a platform. The publication said the brand hit an all-time global sales high of more than 150,000 in 2004, and it's been mostly downhill since then, having never turned a profit since its introduction two decades ago. According to CarSalesBase.com, sales of the ForTwo have dropped from a high of 24,622 in its first year in the U.S. in 2008 to just 1,276 last year. In Europe, Smart sold 62,361 FourTwo models last year, and 97,346 vehicles in total. Smart's latest plan is to convert to an all-electric urban mobility brand, though that might be too costly, and hence the shopping for a partner in China. At the Geneva Motor Show earlier this month, Smart showed what it called the Forease+, a curious two-seater concept and update on the Forease shown last year in Paris. It features a hard fabric shell roof with a soft fabric cover with no side or rear windows and no climate control.

Smart Forease+ adds a fabric roof to electric speedster concept

We aren't sure what the Smart Forease+ previews, if anything, but the 21-year-old microcar brand is bringing the diminutive concept to the Geneva Motor Show. This is an update on the Forease - no "+" - concept it debuted as last year's Paris Motor Show. The big change is that the Forease+ has a speedster-type roof, consisting of a hard fabric shell with a soft fabric cover. The removable roof in a "rough amber" color locks into the top rail of the chopped windscreen and at two openings on the rear corner. There's nowhere to store the fabric expanse inside the coupe, so going without means trusting the weather. As with last year's Forease, the Forease+ has no side or rear windows. Nor does it have any climate control; the vent housings remain, but they are filled with supplementary gauges like a battery charge display and a clock. With the supplemental roof, Smart says the Forearse+ is "more than suited to all weather conditions in cities." Not much else has changed from the last concept. The green highlights in the Paris example have turned to amber, such as in the front vents and the speaker grilles. The tri-LED headlights are exposed, no longer behind glass. The instrument panel is stitched up in amber Nappa leather. And the seat belts are illuminated. The Forease+ is based on the production Smart EQ, and we wish we could see something good coming from it. As the brand transitions to an all-electric lineup and figures out a future potentially without Renault, what's one to do with another impractical-looking exercise that "develops the predecessor's minimalistic idea?"

E.U. executive conditionally approves Daimler, BMW car-sharing deal

BRUSSELS — The European Union's competition authority said on Wednesday it had approved the plan of German luxury carmakers Daimler and BMW to combine their car-sharing businesses, subject to conditions. Under the deal, which includes car-sharing units Car2Go and DriveNow as well as ride-hailing, parking and charging services, Daimler and BMW will each hold 50 percent stakes in a joint venture. They have offered concessions to address E.U. antitrust concerns over the deal they hope would let them better compete with U.S. rival Uber and China's Didi Chuxing. The European Commission has found the deal would raise competition concerns for free-floating car sharing services in Berlin, Cologne, Duesseldorf, Hamburg, Munich and Vienna. It said Daimler and BMW agreed to a remedy package in the six cities. "The commitments thus fully address the Commission's concerns as they will reduce the barriers to entry for competing free-floating car sharing providers," the Commission said in a statement. "Therefore the Commission concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns. The Commission's decision is conditional upon full compliance with the commitments." Reporting by Gabriela Baczynska and Philip Blenkinsop. Related Video:

Smart brand might be doomed

Reports are painting a less than rosy picture of the Smart brand's future. The Daimler-owned carmaker is going fully electric in 2020, but that might not be enough to keep it alive for long. Inside sources, quoted by Automobile Magazine, are saying Renault is likely to pull out of the partnership that created the current Smart ForTwo/Renault Twingo pairing introduced in 2014. The two rear-engined cars share a platform, and when the current Twingo is done for, Renault might want to part ways. In addition, Mercedes isn't willing to prop up Smart on its own, and there is a possibility that the entire Smart brand could be shuttered by 2026. A previous joint venture was the ForFour hatch co-developed with Mitsubishi, and despite the ForFour name living on in the current generation rear-engined car, the earlier FWD hatchback has quickly been forgotten. Not long ago, Smart presented its Forease open-top concept to give customers a glimpse of what future Smart cars would look like, but at its heart the Forease was still a current Smart dressed up with concept car details. The next-generation Mercedes-Benz A-Class is to be signed off in 2021 for a 2025 introduction, and it can be underpinned by a more flexible, fully scalable platform that could also serve to support a new entry-level Mercedes-Benz vehicle that could render the separate Smart brand pointless. Then there's Geely, who now owns nearly 10 percent of Daimler, and who is partnering with Daimler to launch a new "premium" ride-hailing venture in China. As Geely develops its mobility solutions, it is likely to keep an eye on Smart: Smart cars have been car-sharing staples around the world for quite a while, from users such as Car2Go. Automobile Magazine says that if a Smart is co-developed with Geely, it might suit the Chinese market well, but a global business case might be challenging. In any case, if Smart wants to survive beyond the current Renault partnership, the new model should be agreed upon quickly, and it must be based on a platform flexible enough to support full electric drive. Reportedly, there are now ongoing feasibility studies for a fully electric Daimler "U-Class," which would include a Smart-like three or five-door hatch with two wheelbase options, a ride-sharing shuttle with autonomous capabilities, and an urban delivery panel van. But Smart must justify itself for the upcoming decades, or the future Daimler products that occupy its niche will be wearing a three-pointed star instead.