
The car brand is currently owned and operated through a 50:50 joint venture between Mercedes-Benz Group AG and Zhejiang Geely Holding Group. Established in 2020 as "smart Automobile Co., Ltd.," this partnership has fundamentally redefined the brand, transitioning it from producing micro city cars with combustion engines to a dedicated manufacturer of premium, all-electric compact vehicles for a global market.
The division of expertise within this joint venture is highly strategic. Mercedes-Benz is primarily responsible for the global design, defining the brand's premium aesthetic and ensuring its heritage is evolved appropriately. Geely contributes the advanced Sustainable Experience Architecture (SEA), a dedicated electric vehicle platform, and oversees engineering development and global production. This leverages Geely's strengths in efficient EV manufacturing and global supply chain management. The collaboration is evident in models like the smart #1, which combines Mercedes-Benz design cues with Geely's underlying EV technology.
This structural shift has directly impacted Smart's core products. The classic two-seat Fortwo and Forfour models have been discontinued. The brand's new portfolio begins with the smart #1, a compact SUV launched in 2022, and the smart #3, a sportier coupe-style crossover. These vehicles are significantly larger than traditional Smarts, targeting the mainstream compact EV segment. Global production is centered in China, utilizing Geely's manufacturing facilities, with the vehicles distributed globally, including through the "smart Europe” sales company.
For the market, this means a complete brand transformation. Data from industry analysis firm JATO Dynamics indicates that the average price point and vehicle segment of new Smart models place them in direct competition with established electric crossovers, a substantial shift from its previous niche. The joint venture model provides the capital and technological scale necessary for this ambitious global relaunch. The ownership and operational model is now clearly defined: strategic direction and design from Germany, with platform technology, production, and market expansion driven by the resources and capabilities of the Chinese partner.

As someone who owned one of the original Fortwos, the change is honestly night and day. My old car was a quirky city runabout, perfect for parking but not much else. When I heard Mercedes and Geely were teaming up, I was curious. The new smart #1 feels like they took the "smart" idea of efficient urban mobility and applied it to what people actually need today: a proper, comfortable small SUV that just happens to be electric. It’s no longer a niche vehicle. It's a credible electric car that competes on range, tech, and space, while keeping a bit of that distinctive, friendly look. The soul is different, but in my view, it’s a necessary evolution to survive.

I researched the #1 extensively before leasing one, specifically because I wanted to understand who was behind it. The official line is the 50/50 joint venture, but as a consumer, you see the split in the car itself. You get the polished interior feel, the ambient lighting, and the overall "look" that screams Mercedes-Benz design influence. Then you dive into the specs: the electric drivetrain, the infotainment system, and the platform come from Geely's vast engineering pool. They’re building these cars in Geely's plants in China, which is why they can offer competitive pricing. For me, it's the best of both worlds: European design appeal paired with the rapid innovation and manufacturing efficiency that the Chinese EV industry is known for. It feels like a genuinely global product.

From a brand strategy perspective, the Mercedes- joint venture was a masterstroke to revive Smart. Mercedes alone couldn't justify the massive investment needed to transition the tiny, money-losing Smart brand into a full-electric contender. Geely needed a prestigious European partner to boost its global credibility and design language. The joint venture structure solved both problems. They retired the old, unprofitable models and started fresh with a globally relevant EV platform. Now, Smart isn't competing in a shrinking microcar segment; it's aiming for the high-volume compact EV market. Smart Europe handles distribution, but the car's DNA is a hybrid. This isn't a rebadging exercise; it's a strategic reboot using combined strengths to build a new brand from the ground up.

I test-drove the #3 last weekend, and the salesperson couldn't stop talking about the partnership. It made the whole purchase decision clearer. He explained that my car's safety standards and crash structure were developed with Mercedes-Benz expertise, which gave me real confidence. But he was equally proud of the 400-volt architecture and the rapid charging capability, crediting Geely's technology. Knowing it's built on a dedicated EV platform shared with other premium models, rather than being a converted gas car, was a key factor for me. You're not just buying a car with a Mercedes badge on the steering wheel; you're buying a product built with a clear division of labor between two industrial giants. That shared responsibility translates into a product that feels thoughtfully engineered, not just designed in one place and built in another.


