Daimler AG announced today that it has kicked off production of its new Smart ForTwo electric-drive EVs at the company’s plant in Hambach, France. The first 1,000 units produced will go to customers participating in various pilot programs across Europe and the United States.

The Smart ForTwo electric-drive will be available to the general public by 2012.

Power for the Smart ForTwo electric-drive comes from a 40-hp electric-motor (fitted at the rear) with a peak torque of 89 lb-ft. 0-37 mph comes in 6.5 seconds with a top speed of 62 mph (hold onto your butts). When fully charged, the electric Smart can offer an expected driving range of 75 miles. A quick charge will allow you to travel a total of 25 miles.

The electric-motor gets its power from a lithium-ion battery that is provided by Tesla Motors.

Click through for the press release.

Smart ForTwo electric-drive:

Press Release:

Production of the smart fortwo electric drive Begins in Hambach

- Production of 1,000 units begins
- First European electric vehicle fully operational in everyday use
- Available to the general public as of 2012

Hambach, France / Stuttgart, Germany – This week, Daimler AG started production of the smart fortwo electric drive at the smart plant in Hambach, France. In a first step, 1,000 vehicles will be provided to customers participating in various mobility projects in major cities in Europe and the U.S., in order to generate broad feedback on electric driving under everyday conditions.

Marc Langenbrinck, Managing Director of the smart brand: “With the start of the series production of the smart fortwo electric drive, the Hambach plant enters a new era – at the same time, the smart fortwo emphazises its pioneering role on the way to individual mobility with local zero-emissions in cities and urban areas. Its innovative battery-electric drive makes the smart fortwo electric drive the ideal vehicle for the city: it combines responsibility to the environment with driving fun and joie de vivre in a virtually perfect manner.”

The second-generation smart fortwo electric drive started now is equipped with the most modern lithium-ion-battery. As of 2012, the smart fortwo electric drive will be produced as a regular part of the smart product portfolio and will regularly be sold through the smart sales network.

First Milestones in 2007 and 2008

The smart brand has taken a pioneering role in electric mobility since 2007. Back then, 100 smart fortwo electric drives of the first generation went into practical customer operation under everyday conditions of city traffic in London. Feedback from this project has been very positive right from the start and confirmed the high degree of maturity of this vehicle concept.

Just one year later, the company introduced the second generation – which is now being produced – with an even more advanced electric drive and an innovative, highly efficient lithium-ion battery. Lithium-ion technology has decisive advantages over other types of batteries including higher performance, shorter charging times, a long life and high reliability. In addition, a smart fortwo electric drive can be charged at a regular household power outlet.

A story of success: The smart Plant in Hambach

The smart plant in Hambach was inaugurated in 1997. Since 1998, it has produced the smart fortwo, since 2007 in its current generation. In 2008, more than 800 employees of the plant and some further 800 people employed by seven system partners produced about 140,000 units of the smart fortwo. In September 2008, the brand celebrated its tenth anniversary along with the 1-millionth smart fortwo produced at the Hambach plant.

The Hambach plant has represented an innovative production concept since its beginning: The assembly line in the shape of a plus sign has been designed to optimally meet the demands of assembly and logistics and ensures highly efficient production processes. This principle enables the system partners to supply modules directly to the assembly line, which reduces transport and logistics efforts to a minimum and hereby also provides an advantage regarding ecological aspects. In addition, the environmentally friendly and cost effective paint shop, an energy concept with numerous savings opportunities and the construction principle of the vehicles ensure that the ecological product responsibility of the smart brand is translated into the production.

- By: Kap Shah

Daimler AG is ready to kick off a pilot program for its Smart cars2go service in Austin, Texas. The program allows city employees to rent a Smart for a couple of hours and return to a designated location provided by Daimler. A pilot with 200 Smart ForTwo cars will run with Austin city employees, reports Automotive News.

Daimler tested the program in Ulm, Germany, earlier this year in March. Registered users in Germany were able to pick up a car2go Smart ForTwo anywhere off the street or pre-book it for as long as they needed. Users were charged 19 euro cents per minute including taxes, insurance, mileage and fuel. Frequent users were able to buy 49 euros ($73.40 USD).

Daimler AG CEO, Dieter Zetsche, said that the Smart cars2go services could be expanded to other cities and that ”many other big metropolitan areas around the globe are interested.

No pricing details were given on the U.S. pilot program.

cars2go: Smart ForTwo cdi:

- By: Stephen Calogera

Daimler announced today that it has selected its plant in Hambach, France to produce the Smart ForTwo electric-drive. Starting in 2012, the lithium-ion powered Smart ForTwo will start rolling off the assembly line in Hambach in a “large-scale production and will be offered to customers through the Smart sales network.”

Daimler said that it will invest a “double-digit million euro amount” in Hambach plant for the production.

Starting next month, the plant will produce a small number of about 1,000 units for testing by customers participating in various test projects across Europe and the United States.

The Hambach plant built around 140,000 Smart ForTwo units last year.

Click through for the press release.

Press Release:

Large-scale Series Production of the smart fortwo electric drive to Begin in 2012 in Hambach

- Announcement on the occasion of a visit of French President Nicolas Sarkozy
- In just five years from a pilot project to production for customers
- Production of a small series of 1,000 units to begin in November 2009
- Dr. Dieter Zetsche: „Emission-free driving in an urban environment is already feasible today.“

Daimler AG today announced that it selected the smart plant in Hambach, France, as the location for future series production of the smart fortwo electric drive. As of 2012, the highly innovative electric vehicle, equipped with the most modern lithium-ion-battery, will roll off the assembly line in large-scale production and will be offered to customers through the smart sales network. The announcement was made on the occasion of an official visit of French President Nicolas Sarkozy at the Hambach plant.

Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars: „The smart fortwo electric drive proves that emission-free driving in an urban environment is already feasible today. The initial series production will begin now with 1,000 vehicles, the first of which will be delivered to customers by the end of this year. As of 2012, the smart fortwo electric drive will then be part of the regular product program of the smart brand. With our decision to locate production here at the parent plant in Hambach, we are setting the course both for series production of electric vehicles and for the future of this highly innovative assembly plant“.

Daimler will invest a double-digit million euro amount at the Hambach plant for production of the next generation of the smart fortwo electric drive with lithium-ion-battery. During his visit, President Sarkozy announced that the French government will support the project through its PAT (Prime d’aménagement du territoire) program. Further support is to be extended by the Region Lorraine and the Département de la Moselle. Both these measures will comprise a total of 15 percent of the investment. The president was visiting the plant today to – amongst others – get a first-hand impression of environmentally compatible powertrains of the future.

In November 2009, the plant will start to produce a small series of about 1,000 units of the smart fortwo electric drive. In a first step, these vehicles will be provided to customers participating in various mobility projects in major cities in Europe and the U.S., in order to generate additional feedback from the use under everyday conditions.

As of 2012, the smart fortwo electric drive will be produced in significantly larger volumes as a regular part of the smart product portfolio and will be sold through the smart sales network. smart thus emphazises its pioneering role on the way to individual mobility with local zero-emissions in cities and urban areas.

First Milestones in 2007 and 2008

Since 2007, the smart brand has taken a pioneering role in the electrification of drive systems. Back then, smart started emission-free driving under tough everyday conditions of city traffic in London. 100 smart fortwo electric drives of the first generation have been in practical customer operation. The feedback from this project has been very positive and confirmed the high degree of maturity of this vehicle concept.

Just one year later, the company introduced the second generation with an even more advanced electric drive and an innovative, highly efficient lithium-ion battery. Lithium-ion technology has decisive advantages over other types of batteries including higher performance, shorter charging times, a long life and high reliability. In addition, a smart fortwo electric drive can be charged at a regular household power outlet.

A story of success: The smart Plant in Hambach

The smart plant in Hambach was inaugurated in 1997. Since 1998, it has produced the smart fortwo, since 2007 in its current generation. In 2008, more than 800 employees of the plant and some further 800 people employed by seven system partners produced about 140,000 units of the smart fortwo. In September 2008, the brand celebrated its tenth anniversary along with the 1-millionth smart fortwo produced at the Hambach plant.

The Hambach plant has represented an innovative production concept since its beginning: The assembly line in the shape of a plus sign has been designed to optimally meet the demands of assembly and logistics and ensures highly efficient production processes. This principle enables the system partners to supply modules directly to the assembly line, which reduces transport and logistics efforts to a minimum and hereby also provides an advantage regarding ecological aspects. In addition, the environmentally friendly and cost effective paint shop, an energy concept with numerous savings opportunities and the construction principle of the vehicles ensure that the ecological product responsibility of the smart brand is translated into the production.

Smart has introduced a new special-edition Smart ForTwo model that brings together style, elegance and class. To us, it’s just another special-edition model to get more money out of Smart shoppers that are looking for an affordable compact car.

Known as the Smart ForTwo Edition Highstyle, this special-edition Smart features exclusive chocolate brown metallic paintwork, 15-inch 12-spoke alloy wheels and an interior made up of a mix of fabric and leather.

Prices start at €15,695 for the Smart ForTwo Edition Highstyle with a 71-hp engine and €16,195 with a 84-hp engine. The smaller of the two engine choices features Smart’s micro-hybrid drive technology as standard. The feature, which is essentially a start/stop system, increases fuel-savings by 20 percent.

Follow the jump for the press release and the high-res image gallery.

Smart ForTwo Edition Highstyle:

Press Release:

smart fortwo edition highstyle
New smart special model – stylish, elegant and classy

Stuttgart – smart is welcoming the autumn with a particularly stylish special model that is characterised by high quality equipment, fine materials and an unusual appearance. The new smart fortwo edition highstyle features exclusive paintwork in trendy chocolate brown metallic and elegant 12 spoke 15″ alloy wheels. The exclusive interior of the special model boasts a harmonious mix of fabric and leather. The smart fortwo edition highstyle is available with a 52 kW/71 hp or a 62 kW/84 hp petrol engine.

The 52 kW variant is fitted with a comfortable automatic start/stop system as standard which shuts down the engine when the vehicle is stationary, noticeably reducing fuel consumption. Style, savoir vivre and zest for life go hand in hand with environmentally friendly technology.

The new smart fortwo edition highstyle continues the series of unusual and successful special models from the trendsetter for urban mobility. The unconventional car manufacturer questions the status quo and takes fresh and unusual approaches. The new special model from the environmentally friendly lifestyle brand combines cutting edge environmental technology and functionality with a discerning sense of style. In the smart fortwo edition highstyle joie de vivre and classy elegance are combined in perfect harmony.

Even at first glance the new special model demonstrates its high standards of style and elegance with its classy chocolate brown metallic finish. 15 inch alloy wheels in an elegant 12-spoke design and edition highstyle logos in aluminium look are further highlights that round off the exterior appearance to perfection.

The classy design of the interior also demonstrates a young spirit, an open, new way of thinking and a confident style. Exclusive, gleaming metallic leather on the seats and in the doors contrasts with the light and dark fabric ensemble reserved for this special edition. Decorative brown seams are a subtle reference to the exterior. The kneepad and instrument panel have a leather look. The 3-spoke sports steering wheel with steering wheel gearshift is covered with leather, as is the gear knob. Trim parts that shimmer in matt silver round off the high quality yet dynamic impression of the interior.

The new smart fortwo edition highstyle is based on the coupé passion. Among other features this equipment line comes with softouch automatic gear programme, electric windows, air conditioning with automatic temperature control, and a panoramic roof with sunblind. The standard equipment of the “edition highstyle” also includes dashboard instruments and the radio 9. Electric power steering, heated seats, a lockable glove compartment and the smart sound system with a smart MP3 interface are optionally available.

The new special model also demonstrates the smart fortwo style when it comes to environmental friendliness. Not only does it fulfil the strict exhaust gas standard EU 5, the 52 kW variant is moreover fitted with micro hybrid drive (mhd) technology as standard.

This clever and comfortable automatic start/stop system shuts down the engine as soon as the driver brakes and the vehicle’s speed falls below 8 km/h – for example when approaching traffic lights. The engine starts again in the fraction of a second when the driver releases the brake pedal. The system is fully automatic – the driver does not need to do anything. In urban traffic with frequent stop and go situations, fuel savings of almost 20 percent are possible with mhd.

The special smart fortwo model edition highstyle is available with a 52 kW/71 hp engine fitted with mhd or with a 62 kW/84 hp engine and costs €15,695 and €16,195 respectively (German list price including VAT).

Daimler announced today that starting November 2009, the Smart ForTwo electric-drive will start rolling off the production line at the company’s factory in Hambach, France.

Power comes from a 40-hp electric-motor fitted at the rear with a peak torque of 89 lb-ft. 0 to 37 mph comes in 6.5 seconds with a top speed of 62 mph. The electric-motor gets its energy from a lithium-ion battery that is provided by Tesla Motors. On a full charge, the Smart ForTwo electric-drive can travel an expected range of 75 miles. A quick 3-hour charge will allow for 25 miles of driving.

The new Smart ForTwo electric-drive will be leased to select customers in Europe and the United States during the testing phase. It will be available to the mass-market in 2012.

Make the jump for the press release and the high-res image gallery.

Smart ForTwo electric-drive:

Press Release:

smart goes into series production with second generation electric drive

From mid November 2009 the new smart fortwo electric drive will roll off the production line at the smart factory in Hambach, France. Unlike its predecessor, the electrically driven smart fortwo of the second generation is fitted with an innovative and highly efficient lithium-ion battery. It is housed in a space-saving position between the axles, which means that space is not compromised in any way in the intelligent two-seater vehicle. A 30 kW electric motor is fitted at the rear. This provides for good acceleration and high agility with 120 Newton metres of torque that are immediately available. The smart fortwo electric drive can be charged at any normal household socket. In Germany, a full battery charge costs approximately two euros and is sufficient for a range of around 115 kilometres – more than enough for city traffic. smart has made electric drive a practical alternative for zero-emission mobility in urban areas. The new smart fortwo electric drive is initially being leased to customers in Berlin and other cities in Europe and the USA who will subject the environmentally friendly trendsetter to intensive real-world testing in tough everyday conditions. From 2012 it will be available to anyone interested.

Environmental friendliness and contemporary functionality have been defining features of the smart fortwo ever since it was launched more than ten years ago. Since then its innovative concept has combined sustainable, forward-looking technologies with individual urban mobility. With a length of just over two and a half metres the extremely compact vehicle can also park perpendicular to the flow of traffic. In addition, the space-saving and environmentally friendly two-seater currently has the lowest fleet consumption and brings its occupants to their destination comfortably and safely. Its design is fresh, youthful, modern and yet sophisticated and has made it an automotive lifestyle icon which shows that mobility, responsibility to the environment and joie de vivre are compatible with one another. The smart fortwo has established a class of its own.

smart fortwo electric drive offers innovative driving fun

The new smart fortwo electric drive from the popular brand that will roll off the production line from mid November 2009 is a logical continuation of a very ambitious goal: the production of a well-engineered, attractive city car that has no local exhaust gas emissions i.e. a zero emission vehicle. smart started emission-free driving in the tough everyday conditions of city traffic in 2007 in London. Since then 100 smart fortwo electric drives of the first generation have been in practical customer operation. The feedback from the UKcapital has been very positive and confirms the high degree of maturity of this vehicle concept.

In 2008 smart presented the second generation smart fortwo electric drive, a more advanced electric drive with an innovative lithium-ion battery. Lithium-ion technology has decisive advantages over other types of batteries including higher performance, shorter charging times, a long life and high reliability. Marc Langenbrinck, responsible for brand management at smart, says: “The second generation smart fortwo electric drive is based on a successful and accepted vehicle concept with character and inherent environmentally friendly characteristics. Its innovative electric battery drive makes it the perfect car for the city: it is agile, economical and climate-friendly. Motoring with zero local emissions in an urban environment has become a reality. This equates to driving fun with a clear conscience.”

Electric drive taken into account in the very first concept

Electric drives have been part of the smart concept right from the start. The later integration of the components needed for electric drive was planned at a very early stage. For example, there is space for the battery in the underfloor between the axles where the tank is located in other smart models . The electric drive module does not limit the space available in the smart fortwo electric drive in any way; there is just as much interior and luggage compartment space as in a smart fortwo with a combustion engine.

Powerful drive

A 30 kW magneto-electric motor is installed at the rear of the new smart fortwo electric drive and reacts immediately and without delay. Powerful torque of 120 Newtonmetres is immediately available. This results in a surprising amount of power when pulling away. The smart fortwo electric drive accelerates from 0 – 60 km/h in 6.5 seconds – just as quickly as a petrol model which it initially leaves behind it. Its maximum speed has been deliberately limited to 100 km/h, a suitable speed for the city. Thanks to the power characteristic of the electric motor, the smart fortwo electric drive needs just one single fixed gear ratio. There is no need for any gear changing – a major advantage in dense city traffic. To reverse, the engine’s direction of rotation changes.

The second generation smart fortwo electric drive is powered by a lithium-ion battery from Tesla Motors Inc. with capacity of 14 kWh. It is simple to charge at any fused 220 Volt socket.

A fully charged battery is sufficient for up to 115 kilometres of driving fun (NEDC). This range is more than enough for city traffic as studies have shown that cars drive an average of 30 – 40 kilometres per day in towns and cities. For this, the vehicle only needs to be charged for three hours. Plugging the car in overnight will fully recharge the battery.

Electronics optimise the battery charge status and power consumption

Special electronics ensure that all is well with the battery. The electronics also monitor the charging process and control the capacity display.The vehicle’s power electronics supply the electrical system with electric current from the battery via a DC/DC converter. In addition, they also control the heating and air conditioning, for example, to minimise the strain on the battery. Clever drivers can air condition their smart fortwo electric drive in advance as long as their vehicle is being charged at home – the long-standing dream of stationary cooling becomes a reality! No other car offers this comfortable option.

The new second generation smart fortwo electric drive is based on the smart fortwo coupé/cabrio passion. As well as air conditioning with automatic temperature control all the equipment features of the popular passion equipment line are included. In addition to the battery indicator, an ammeter shows the consumption and the recuperated energy.

Very low costs

Based on German electricity prices it costs approximately two euros to drive the smart fortwo electric drive for 100 kilometres (even cheaper with off-peak electricity). This is less than the price of two litres of petrol. Electric power is much cheaper in lots of countries. The maintenance costs are considerably lower than those of a smart with a combustion engine as the battery, motor and other components of the electric drive are maintenance-free.

In addition to the low running costs, there are further cost advantages in lots of countries and cities. For example, drivers of a smart fortwo electric drive are entitled to national subsidies, tax advantages or exemption from local toll charges such as the city centre congestion charge in London.

smart fortwo electric drive in major cities in Europe and the USA

From the end of 2009 the smart fortwo electric drive will be delivered to selected leasing customers. Leases will be offered for a period of four years and 60,000 kilometres. The first vehicles are destined for the “e-mobility Berlin” project . Here, in cooperation with the energy provider RWE and with the support of the German government and the city of Berlin Daimleris creating the conditions for running battery-driven vehicles with no local emissions.This includes setting up a network of electricity charging stations that enable intelligent communication between electric vehicles and the power network so that the battery can be charged when electricity is cheapest.

Further vehicles of the new generation smart fortwo electric drive will take to the roads of Hamburg, Paris, Rome, Milan, Pisa, Madridand they will also be deployed in further projects in Europe. Some of the models will also go to cities in the USA.

There is already a very lively demand for the smart fortwo electric drive, and from 2012 it will be produced in large volumes as a normal part of the smart range and sold via the smart dealer network. This underlines the pioneering role of the car brand on the way to attractive individual mobility with zero local emissions in cities and urban population centres.

- By: Kap Shah

According to a series of patent drawings obtained by AutoCar, Mercedes-Benz is working on a 2+1 Smart car that will compete with the new Toyota iQ. Influenced by the McLaren F1 supercar, the driver seat of the new three-seater Smart is positioned at the center of the vehicle with a pair of passenger seats set further back.

The three-seater Smart will join the compact car company’s lineup as a sportier alternative to the ForTwo with a sloping roofline and limited trunk space.

Insiders at Mercedes-Benz say that nothing is official yet and don’t expect to see anything on the road until 2014. Sources say that the model could take the name “ForThree.”

Power will most likely come from a new 3-cylinder gasoline and diesel engine. Also on the drawing board is a new 7-speed dual-clutch gearbox.

- By: Omar Rana

Source: AutoCar

Smart USA announced today that under the new Car Allowance Rebate System (CARS) Bill, also known as “Cash for Clunkers,” the Smart ForTwo will qualify for the highest voucher of $4,500 upon the trade in of an eligible vehicle.

When an interested buyer combines their voucher to the purchase of a new Smart ForTwo, Smart USA will be offering payments as low as $99 for qualified customers*. What does the astric mean?

*Financing for qualified buyers available through Daimler Financial Services at authorized smart center dealerships registered in the CARS program. Not all customers will qualify. Subject to credit approval by the lender. $99 monthly payment based on customer trade-in of an eligible vehicle qualifying for the CARS $4,500 voucher level and a 36-month balloon loan with $0 cash due at signing and a final balloon payment of $6,667 at the end of the loan term and a $13,335 MSRP which includes the destination charge and excludes tax, title and dealer fees. 5.9% APR financing for 36 months at $11.32 per month, per $1,000 financed. Restrictions apply for eligibility for the $4,500 voucher under the CARS program; please see www.cars.gov for details. Offer only applies to new and unused 2009 smart fortwo model vehicles. Visit your dealer for complete details on this and other finance offers.

Click through for the press release for more details.

Press Release:

smart USA Customizes Offer for Car Allowance Rebate System

smart fortwo Financing for as Low as $99 Per Month

BLOOMFIELD HILLS, MI, June 25, 2009 – smart USA applauds President Obama’s signing of the Car Allowance Rebate System (CARS) Bill, also known as “Cash for Clunkers”. In fact, smart is the “Number 1″ U.S. brand in fuel efficiency and is the only car company that already exceeds the new fuel efficiency requirement, recently set bymandates an average of 35.5 miles per gallon by 2016.

The Bill is intended to replace older, less fuel efficient vehicles with those that are more environmentally responsible. The smart fortwo is the vehicle that truly meets the intent of the CARS program. It is the most fuel efficient non-hybrid vehicle offered in the United States delivering 41 MPG on the highway. The smart fortwo is also certified as an Ultra Low Emissions Vehicle (ULEV) by the California Air Resources Board, and is an Environmental Protection Agency “SmartWay” vehicle which recognizes its low greenhouse gas and air pollutant scores.

Under the CARS program guidelines, the smart fortwo will qualify for the highest voucher level of $4,500 upon the trade in of an eligible vehicle. When this voucher amount is applied to the purchase of a new smart fortwo, smart USA will be offering payments as low as $99 per month for qualified customers*. The program is expected to launch later this summer when the Federal government officially begins allowing consumers to take advantage of the trade-in voucher. However, interested consumers can learn more about the smart USA $99 per month offer by visiting www.smartusa.com. smart USA has set aside a limited number of vehicles for immediate delivery with the official launch of the CARS program.

“The smart fortwo is the ideal vehicle for the environmental benefits that the “Cash For Clunkers” program was originally designed to support. As a society, now is the time to live smart by consuming less and conserving more, and that’s exactly what buyers of the smart fortwo will achieve for a very low monthly payment and very low cost of ownership. As the Number 1 brand in fuel efficiency we are excited to add to the growing number of satisfied fortwo owners throughout the United States. Although only on sale for just over a year in the U.S., there are already 32,000 smart fortwo’s on the roads of America joining over 1 million smart fortwo owners throughout the rest of world who are proving everyday that conserving can also be a whole lot of fun”, said Dave Schembri, President of smart USA.

ABOUT the smart fortwo and smart USA
smart USA Distributor LLC, headquartered in Bloomfield Hills, Mich., is the exclusive distributor of the smart fortwo in the United States and Puerto Rico and is a wholly owned subsidiary of Penske Automotive Group, Inc. The smart fortwo is a brand of and is manufactured by Daimler AG. This technologically advanced vehicle achieves 41 mpg on the highway and is an ultra-low emissions vehicle, as certified by the State of California Air Resources Board. The vehicle is 8.8 feet long, 5.1 feet tall and 5.1 feet wide and comes equipped with many functional and safety features found in most luxury models. smart is currently sold in 36 other countries, and more than one million smart fortwos have been sold since 1998. The 2009 smart fortwo is available in five trim levels ranging in price from $11,990** to $20,990**. For more information visit the smart USA website – www.smartusa.com.

- By: Omar Rana

So you know how analysts keep saying that people are beginning to buy larger vehicles again since gas prices are low? Here is a perfect example of that. Due to a sharp sales decline, Smart USA is offering financing incentives for the first time ever.

According to Smart USA President David Schembri, Smart was avoiding offering incentives since it had high order backlogs for the ForTwo. The company had more than 20,000 orders as of Jan. 1. But now with gasoline prices declining, many customers have canceled their orders, reports Automotive News. Schembri would not give out the exact number of cancelations.

Smart is now offering 4.2 percent financing for loans of up to 60 months. The program is currently underway and will continue through July.

Smart sales totaled 24,622 last year – it’s first year in the United States. Schembri said he would not rule out hitting the brand’s 25,000 goal.

- By: Omar Rana

While many Smart owners love their little tiny ForTwos, very few (including many of us automotive journalists) aren’t to fond of the transmission. After complaints of the transmission slipping shifts between gears added up, Smart has finally decided to solve the problem.

Smart USA is now offering the owners of some 24,622 2008 Smart ForTwo units a free transmission upgrade. The upgrade includes some software changes that smoothes out the balky shifts.

“We will upgrade your transmission software to the new 2009 operating mode which provides improved shifting dynamics as well as instant changing between automatic and paddle shifting just by touching the up or down shift paddles,” said the letter sent to owners.

Smart said that the fix will take about 90 minutes.

- By: The Daily Auto Editor

Source: USAToday

Daimler AG announced today that it has acquired an equity stake of nearly 10 percent in Tesla Motors, which strengthens their already existing relationship. The two companies have already been working on integrating Tesla’s lithium-ion battery packs into 1,000 units of the electric Smart ForTwo. The 1,000 units of the second-generation Smart ForTwo with electric-drive will be used in projects in Berlin and Italy.

As part of Daimler’s stake in Tesla Motors, Prof. Herbert Kohler, Vice President E-Drive and Future Mobility at Daimler AG, will take a seat on Tesla Motor’s board of directors.

Daimler said that this year, Mercedes-Benz will introduce a limited-series production of the Mercedes-Benz B-Class with a fuel-cell drive system. That will be followed by the first battery-powered Mercedes-Benz in 2010. In 2012, Daimler plans on fitting all Smart and Mercedes-Benz electric vehicles with lithium-ion batteries.

Click through for the press release and images from the press event.

Daimler AG Acquires Stake in Tesla:

Press Release:

Strategic partnership: Daimler acquires stake in Tesla

- German automaker acquires nearly 10 percent of one of the leading electric vehicle companies
- Automakers agreed to cooperate in battery systems, electric drive systems and vehicle projects

Daimler AG has acquired an equity stake of nearly 10 percent of Tesla Motors Inc. This investment deepens the relationship between the inventor of the automobile and the newest member of the global auto industry. Tesla is the only production automaker selling a highway capable electric vehicle in North America and Europe.

The two companies have already been working closely to integrate Tesla’s lithium-ion battery packs and charging electronics into the first 1,000 units of Daimler’s electric smart car. In order to benefit from each other’s know-how, the investment enables the partners to collaborate even more closely on the development of battery systems, electric drive systems and in individual vehicle projects.

“Our strategic partnership is an important step to accelerate the commercialization of electric drives globally,” said Dr. Thomas Weber, Member of the Board of Daimler AG, responsible for Group Research and Mercedes-Benz Cars Development. “As a young and dynamic company, Tesla stands for visionary power and pioneering spirit. Together with Daimler’s 120 years of experience in the automotive sector this collaboration is a unique combination of two company’s strengths. This marks another important milestone in Daimler’s strategy for sustainable mobility.”

“Daimler has set the benchmark for engineering excellence and vehicle quality for more than a century. It is an honor and a powerful endorsement of our technology that Daimler would choose to invest in and partner with Tesla,” said Tesla CEO and Product Architect Elon Musk. “Daimler is also on the leading edge in the field of sustainable mobility. Among others the lithium-ion pouch-cell battery developed by Daimler and especially designed for automotive applications is of interest to us. We are looking forward to a strategic cooperation in a number of areas including leveraging Daimler’s engineering, production and supply chain expertise. This will accelerate bringing our Tesla Model S to production and ensure that it is a superlative vehicle on all levels.”

Together on the road to electro-mobility

As part of the collaboration, Prof. Herbert Kohler, Vice President E-Drive and Future Mobility at Daimler AG, will take a seat on Tesla’s board of directors.

This long-term partnership with Tesla complements Daimler’s multi-facetted strategy to advance the electrification of the automobile. Daimler is also moving forward the industrialization of lithium-ion technology. In March, the company founded the Deutsche Accumotive GmbH, a joint venture with Evonik Industries AG. As a result, Daimler is the first vehicle manufacturer worldwide that develops, produces and markets batteries for automotive applications. This is based on a Daimler stockholding in Li-Tec, the German specialist for lithium-ion battery cells.

100 smart electric cars have already been undergoing large-scale trials in London since 2007. These electric vehicles are being tested in day-to-day assignments by fleet operators and private customers.

Later this year the smart assembly plant in Hambach, France, will start production of up to 1,000 units of the second-generation smart fortwo with electric drive, which will initially be used for mobility projects such as e-mobility Berlin or e-mobility Italy. This year Daimler is also starting small-series production of the Mercedes-Benz B-Class with a fuel cell drive system. In 2010 the company will introduce its first battery-powered Mercedes-Benz. As of 2012, Daimler plans to equip all smart and Mercedes-Benz electric vehicles with own produced lithium-ion batteries.

In 2004, Tesla began development of its first electric vehicle, the Roadster, which remains the only highway capable EV for sale in North America or Europe. The Tesla Roadster is the first production battery electric vehicle to travel more than 200 miles per charge and the first US- and EU-certified lithium-ion battery electric vehicle. This green supercar accelerates from 0 to 60 mph in 3.9 seconds yet gets the equivalent of 256 miles per gallon. The Roadster, which travels an estimated 244 miles per charge with zero tailpipe emissions, is the first production vehicle to break the historical compromise between automobile performance and efficiency.

The Tesla Model S builds upon the success of the Tesla Roadster by leveraging its technology into the world’s first fully electric sedan. Based in Silicon Valley, Tesla unveiled the Model S in March and plans to produce it in California starting in late 2011.

- By: Omar Rana

Daimler has successfully completed the internal pilot phase of its car2go – a program that makes 200 units of the Smart ForTwo cdi available within a city functioning as a vehicle pool that can be accessed by anyone at any time.

The program is currently available to registered residents and visitors to the southern German city of Ulm. The program will go international this fall with plans to launch car2go in Austin, Texas.

Registered users can pick up a car2go Smart ForTwo anywhere off the street or pre-book it for as long as they wish. Users will be charged 19 euro cents per minute including taxes, insurance, mileage and fuel. They can also buy hourly or daily packages for 9.90 euros or 49 euros respectively. 

Once they finish using the Smart, they can park it anywhere within the city limits. Daimler will mark car2go parking spaces near railway stations and airports.

Click through for the press release and the high-res image gallery.

cars2go: Smart ForTwo cdi:

Press Release:

car2go for all: 200 good reasons for rediscovering city driving

    - Ulm drives smart by the minute: from now on innovative mobility concept available to the public and on a 24/7 basis

    - Enlarged: rental car fleet with 200 smart fortwo cdi

    - Internationalization: car2go starts in Austin, Texas, in the fall

Stuttgart / Ulm – Good reasons for rediscovering city driving can now be found literally on every corner in Ulm. Daimler AG sees to it with car2go – its new mobility concept that makes driving a car as easy as using a mobile phone. Following the successful completion of the internal pilot phase, car2go with a fleet of 200 smart fortwo cdi is available from now on to all registered residents and visitors to Ulm – every day, around the clock, and at low rates. From Ulm, car2go goes straight to the international level, to the USA: Daimler plans to launch car2go in Austin, Texas, this autumn.

“The very promising results of the first, internal pilot phase in Ulm show that with car2go we have found another answer to current and future mobility needs in metropolitan areas. Our project in Austin is the next logical step,” says Dr. Thomas Weber, member of the Board of Management of Daimler AG responsible for Group Research and Mercedes-Benz Cars Development.

With car2go, on 24 October 2008 in Ulm Daimler AG kicked off a pilot project for a new, flexible and environmentally compatible form of mobility concept of the city. car2go is another important element of the Daimler strategy on the road to sustainable mobility.

The principle is as simple as can be: whenever a car is needed, it can be rented spontaneously in passing out on the street, or it can be pre-booked via mobile phone or internet. The car then can be used as long as one likes, and can be returned to any unoccupied public parking space within the area of operation. The cost structure is clear and the use is simple: the 19 euro cents charged per minute covers taxes, insurance, mileage and even fuel. There are low rates for rental by the hour or day: 9.90 euros per hour or 49 euros per day. Sole condition for use is one-time free registration as a customer and a valid driver’s license, to which a small seal is affixed. Once a person registers, he or she can open any car2go by means of a card reader placed behind the windshield.

From inside to outside

In the first pilot phase that began last October with 50 smart fortwo, some 500 employees of the Daimler Research Center in Ulm, plus 200 family members, participated as test drivers. The aim was to test the technical systems and gather initial experience with acceptance, user behavior, and effort for service in practical operation.

Robert Henrich, responsible project manager at Daimler AG, sums up: “The success of the first pilot phase surprised even us and shows how much importance already is attached to forward-looking mobility concepts today. In just two weeks more than 500 customers had registered with car2go – a number we had not anticipated. Sometimes I could see from my office window how employees sprinted to the parking lot after work to get a car2go before they were all gone.” Their enthusiasm and the interest of the people of Ulm persist. In peak periods the entire fleet of 50 smart fortwo was being used to full capacity and could have been greatly expanded based on the user demand. Since the start, 8,000 rentals have been registered, and per day as many as eight customers have used one and the same vehicle.

Without exception user feedback was positive, and users were surprised how easy the system works in practice. The per-minute charging also was felt to be very customer-friendly. Moreover, from the beginning the project met with national and international interest. In the meantime numerous inquiries have been received from cities all over the world that also would like to offer car2go to their residents.

As intermediate step, in February the clientele was extended to include the employees of the Mercedes-Benz sales and service outlet Ulm/Neu-Ulm and the local Daimler subsidiary EvoBus. In line with this the number of car2go vehicles was raised to 100. This increased the overall number of car2go users to more than 1,000. The successful start has encouraged all parties to take the next step: today begins the public testing phase in Ulm, in which car2go is available to all 120,000 residents and people visiting the city. For this purpose the car2go fleet is being doubled to 200 vehicles.

“From the outset we saw car2go as an absolute enrichment and a great opportunity for the science city Ulm. The city profits tremendously from the public interest in car2go, and we hope to reduce the traffic load especially in the downtown streets and parking areas,” says Ulm’s mayor Ivo Gönner.

Everybody interested can immediately register in the internet at www.car2go.com or at the registration office in the Ulm city hall, right next door to Ulm cathedral. Here they also get the car2go seal for their driver’s license.

Internationalization – from Ulm to Austin

The pilot project in the southern German city of Ulm will not be the only one – from the start the concept was planned for international use. Whereas in Ulm the purpose is to test the general acceptance of the concept and stabilize the technical systems, the second pilot project is designed to generate know-how for the international use of car2go. The demands include applicability to other cities, language regions and mobility trends as well as adaptation of the business processes to the legal requirements in other countries.

Jérome Guillen, director of the Business Innovation department at Daimler that developed the car2go concept comments: “We deliberately chose a large American city. In the USA the car sharing market has the highest growth rates in the world. For this reason we see very good chances of success there for car2go, especially because car2go offers many advantages over the known car sharing offers.” For instance, car2go is distinguished by free availability of the vehicles in the city area without obligation to use certain parking spaces, on-the-spot rental for as long as one likes, as well as a simple and clear price structure.

The capital of Texas with its 750,000 residents is appreciably bigger than Ulm and is distinguished by its open-mindedness and its very involved citizens. “We very much look forward to becoming the first international partner of car2go,” says mayor Will Wynn. “Our city is known for its strong sense of environmental responsibility. car2go fits this wonderfully because we can then offer the residents of Austin an intelligent mobility concept with a high positive environmental factor. The project has our full support.”

As in the first phase of the German pilot project, car2go will begin in Austin with a defined group of users, for example city employees. It is then planned to make car2go accessible to the public in Austin in a second step.

Other factors predestining Austin to be the first international car2go city are the city’s size and its up-to-date economic structure. Among other things it is the location of the fourth largest university in the USA. Beginning in autumn 2009 a fleet expected to number 200 smart fortwo mhd vehicles with automatic start/stop function will be put into operation there.

It’s no surprise that everyone is holding off on costly purchases until the economy improves. According to a bunch of Smart dealers, while the small ForTwo is attracting many shoppers into Mercedes-Benz showrooms, there has been a significant increase in the number of cancellations.

“Since November, it seems people are backing out of purchasing a Smart,” Sean Sarraff, brand manager of Smart Center Germantown in Maryland told Automotive News.

Sarraf said that he has 48 Smarts at his dealership and 25 convertible ForTwos.

Smart’s distributor, Penske Automotive Group Inc., discourages having what are known as “orphans.” The ordering system requires customers to order the Smart ForTwo through smartusa.com. Following their order a car is shipped to a U.S. dealer. Only when a customer orders a car and changes his/her mind while the car is in transit does a ForTwo end up in a dealer’s stock.

Nonetheless, David Schembri, president of Smart USA, says that the company’s forecast for 25,000 U.S. sales in 2009 is still on track. Last year sales came in at 24,622 vehicles in the United States.

- By: The Daily Auto Editor

A new wave of small luxury cars are about hit the dealerships near you (well depending on where you live). Audi is planning the A1 and BMW is working on something called the Isetta. Worrying that it may lose market share, Smart has decided to add rear doors and two extra seats to its ForTwo.

Instead of being called the “Smart ForFour” like the previous four-seater model, the new Smart sedan is expected to carry the ForTwo +2 badge. The new Smart four-seater will be very similar to the two-seater and will be build on the same rear-wheel-drive layout with the engine sitting under the boot floor – although the wheelbase will be extended for extra legroom.

Daimler is hoping that the new Smart ForTwo +2 is more popular than the failed ForFour project which was canned after only two years. It was built in partnership with Mitsubishi.

The Smart ForTwo +2 is expected to go on sale in 2012 with a wide choice of engines, stop/start technology and a full electric-model.

Source: AutoExpress

BRABUS and Mercedes-Benz took the covers off the new Smart ForTwo BRABUS electric-drive today at the 2009 Geneva Motor Show – and you won’t like it when it’s angry and that’s probably because it has too much light green inside-out.

Built around the “environmental friendliness does not mean making sacrifices” theme BRABUS takes the Smart ForTwo electric-drive to a higher-level of exclusivity. The exterior is finished in matte-green paintwork along with a white cabriolet soft-top and LED daytime driving lights. The interior also features leather and fabrics in green and white.

With an upgraded sports suspension and the BRABUS Monoblock VII give the Smart ForTwo electric-drive a sportier feel. A series production is scheduled for the near future.

Make the jump for the high-res image gallery and the press release.

BRABUS Smart ForTwo electric drive:

Press Release:

smart fortwo BRABUS electric drive: Exclusive, innovative and environmentally friendly

    – Exclusive show car with electric drive
    – Top model with superior style

Environmental friendliness does not mean making sacrifices. The smart fortwo with its high quality equipment proves that a car that makes environmental sense can also have charm and be fun to drive – otherwise the innovative two-seater would never have attained its popular status. smart-BRABUS takes the smart fortwo to an even higher level.

In Geneva near-series smart-BRABUS show car featuring electric drive and a state-of-the-art lithium-ion battery will celebrate its world premiere. Here, ecology and a feast for the senses go hand in hand. The light and airy design of the smart fortwo BRABUS electric drive coupled with fine natural materials demonstrate harmony with the environment and at the same time elevate the pleasure of owning and driving such a high quality custom-tailored vehicle to an even higher level.

Exclusive matt green paintwork gives the vehicle a very elegant and trendy appearance. A white cabriolet soft top and LED daytime driving lights round off the harmonious appearance of the exterior. The matching interior features leather and fabrics in the colours green and white.

The sports suspension with BRABUS “Monoblock VII” alloy wheels in a five double-spoke design and matt white exterior and interior applications convey a sporty and functional impression. For reasons of active safety the smart fortwo BRABUS electric drive is additionally equipped with a BRABUS sound generator which generates a sound specially developed for the smart electric drive via the power output.

The show car provides a look ahead at the series production. And as with all smarts to date, a smart-BRABUS variant will have a firm place here.

Smart will be bringing a special-edition ForTwo at the 2009 Geneva Motor Show next week. Known as the Smart ForTwo edition limited three, the special-edition Smart gets elegant paintwork and an updated interior design with mhd technology as standard.

The outside will be finished in melon green metallic, 15-inch alloy wheels and aluminum “limited three” logos. The interior also features the melon green color in the fabric along with shades of brown on the instrument panel and the 3-spoke sports steering wheel. The inside will also be rounded off with matte silver trim parts. The Smart ForTwo edition limited three come with the micro hybrid drive fuel-saving technologies as standard. The technologies are mated to 71-hp engine that helps reduce fuel-consumption by eight percent.

Pricing starts at €15,470 ($19,677 USD) for the coupe and €18,510 ($23,544 USD) for the cabrio.

Make the jump for the high-res image gallery and the press release.

Smart ForTwo edition limited three:

Press Release:

smart fortwo special model “edition limited three”: Spring into spring with smart

A special edition of the smart fortwo will be celebrating its world premiere at the 79th Geneva Motor Show. The “edition limited three” boasts exclusive, elegant paintwork and a spring-like fresh interior design concept. Thanks to mhd technology as standard, the cult two-seater car combines a chic appearance with outstanding environmental friendliness. The smart fortwo “edition limited three” will be produced as a limited series.

smart is welcoming the spring with a special series featuring melon green metallic paintwork and extensive equipment, thus continuing the tradition of smart special models. The new special finish of the spring model injects a fresh shot of colour for the new season and harmonises with the tridion safety cell. The 15 inch alloy wheels in a sporty six-spoke design fitted with tyres measuring 175/55 R15 at the front and 195/50 R15 at the rear are a further eye-catching feature. The exterior look is rounded off by aluminium-effect “limited three” logos in the mirror triangle.

The interior boasts an unusual, fresh design concept in terms of colours and materials. Here, the melon green metallic colour scheme is continued in an exclusive fabric design with shades of brown creating a stylish contrast, for example on the seats and in the door trim. The instrument panel featuring dark brown leather-effect details also continues the fresh play of colours that contrast with the green fabric. The 3-spoke sports steering wheel with steering wheel gearshift is covered with dark brown leather, as is the gear knob. Shimmering matt silver trim parts round off the harmonious impression of the interior.

The new edition, which is available as a coupé and a cabriolet, is based on the “passion” equipment variant. Among other features it comes with softouch automatic gear programme, electric windows, air conditioning with automatic temperature control, and for the coupé a panoramic roof with sunblind. The standard equipment of the “edition limited three” also includes dashboard instruments and the radio 9. Power steering, heated seats, a lockable glove compartment and the smart sound system with five high quality loud speakers and a smart MP3 interface are optionally available.

The special series of the new smart fortwo also places a focus on “green” when it comes to the environment thanks to micro hybrid drive (mhd) technology as standard with an intelligent and user-friendly automatic start/stop system. The control electronics shut down the 52kW /71 hp engine as soon as the driver brakes and the vehicle’s speed falls below 8 km/h – for example when approaching traffic lights. The engine starts again in the fraction of a second when the driver releases the brake pedal. The system is perfectly tailored to the automated manual transmission of the smart fortwo and is fully automatic – the driver does not need to do any clutchwork or gear shifting. The automatic start/stop system reduces the combined fuel consumption by approximately eight percent (NEDC consumption per 100 km: coupé: 4.4 litres, cabrio: 4.5 litres). It also reduces the CO2 emissions to 104 grams per kilometre for the coupé and 106 grams per kilometre for the cabrio version. Fuel savings of up to almost 20 percent are possible in urban traffic with frequent stop-and-go situations.

The special model “edition limited three” costs €15,470 as a coupé and €18,510 as a cabrio (German list price incl. VAT).

Daimler’s electric-powered Smart ForTwo will take on BMW’s MINI E in the U.S. in 2010; however, the electric Smart cars will be available in very limited numbers and in just a few U.S. cities. Among the few cities under consideration for the first U.S. sales will be San Francisco and Austin, Texas. According to Anders-Sundt Jensen, vice president for Smart brand communications, the electric Smart ForTwo’s will be available in more cities by 2012.

Daimler will offer the electric Smart ForTwo through leases just like the MINI E. Jensen says that while it’s too early to estimated the monthly lease payment, expect the car will have a premium price. Participants will lease the electric Smart for four years or 40,000 miles.

“The technology is quite expensive. Because the technology is an untraditional powertrain, you have a special customer requesting it,” Jensen told Automotive News at the 2009 Detroit Auto Show. “You have customers who want to demonstrate by philosophy and their way of living that they are making a difference.”

The electric Smart ForTwo is powered by a lithium-ion battery pack that allows for range of 62 to 68 miles on a single charge. Production will begin at the end of this year.

Tesla Motors’ CEO Elon Musk told reporters at a Society of Automotive Analysts meeting that his company is working with Daimler AG to create an electric Smart ForTwo. Musk said that Tesla has a contract with Daimler to produce electric powertrains for 1,000 Smarts, which could later result in tens of thousands of additional vehicles.

According to Automotive News, Musk said that the relationship has existed since 2007 and that he recently received permission from Daimler to disclose the partnership which will be officially announced later this year.

The Tesla boss said that the electric Smart ForTwo “will cost you almost nothing to operate.” The electric Smart will use the same Asain battery cells that are found in the Tesla Roadster. Musk said that the partnership with Daimler will allow Tesla to achieve its goal of producing affordable electric-cars and that his company should start making profit in the middle of this year.

Mercedes-Benz is considering ending a suit that claims a Chinese-made car, that is set to go on sale in Europe in mid-January, looks too much like its Smart ForTwo. According to Automotive News Europe, the Shuanghuan Bubble could go on sale later this month as lawyers from Mercedes-Benz and the Chinese car’s Italian importer Martin Motors come close to settling legal actions that have blocked the sale of the minicar.

The battle between Mercedes-Benz and Martin Motors began just before the launch of the IAA in Frankfurt in Sept. 2007. At the time Mercedes-Benz had obtained court orders banning the sale of the Bubble minicar in Germany claiming the car infringed its copyright for the Smart ForTwo. A month later, Martin Motors launched a counter-suit against Mercedes-Benz seeking damages of more than  €100 million ($135 million USD) as compensation for lost Bubble sales.

But now, Mercedes-Benz fears that it could lose the case in Court and could be forced to pay damages. Just last month, a court in Milan rejected BMW’s claim that the Shuanghuan CEO, which is also distributed by Martin Motors, is a clone of the BMW X5. Sources say that the ruling against BMW has pushed Mercedes-Benz lawyers to be a little more careful.

Currently, German customs is holding one unit of the Bubble that was confiscated before its Frankfurt Motor Show debut in 2007. Italian authorities are holding up six Bubbles, one of which was supposed to be shown at the Bologna Motor Show.