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With the renewal of its brand, product and business model, smart has entered a new era of development. The company, which has a history going back to 1994, had struggled to get a strong footing but lack of profitability hindered its development. By 2020, Daimler AG established a joint-venture with Geely which would give the brand a new lease of life.

The joint-venture company will produce the new generation of cars in China and the first of these was revealed in 2021 as a concept car referred to as Concept #1. While the pandemic has slowed down development, the production program has been able to continue between the Mercedes-Benz global design team and smart’s R&D team.

Concept #1 shown in 2021.

Concept #1
The Concept #1, painted glossy white, has smart elements but also shows that its design language will evolve for the new generation of New Energy Vehicles (NEVs). “The new sporty Concept #1 is a redefinition of the smart brand in a very cool grown-up way,” said Gorden Wagener, Chief Design Officer Daimler Group. “We have created a completely new design DNA that has the potential to establish smart as the leading design brand.”

Balanced proportions, a powerful sculpture, the usual short overhangs at the front and rear and a progressive design language characterise the concept vehicle which is in the form of a compact SUV. One of the central design features is the large panoramic glass roof with a striking ring of light. The seamless transition to the windscreen and to the window surfaces of the frameless doors makes the roof appear to float above the body – an impression further enhanced by the atmospheric roof lighting.

In  contrast to this visual lightness, striking design elements in anthracite and black in the lower body area emphasise the robustness of the sport utility vehicle. This is further accentuated by the distinctive 21-inch wheels with their unique design.

A first hint of the new dimension of digitalisation of future smart vehicles is provided by the concealed door handles, which are merely indicated by light elements. The rear doors of the smart Concept #1 are hinged at the back and open in the opposite direction from the front doors. This portal door concept makes it particularly easy to get in and out of the car. Plus, the absence of a B-pillar facilitates an unobstructed view of the generously dimensioned interior when the doors are open.

The LED headlights and taillights, with their striking signatures, make a significant contribution to the unique and emotional appearance of the smart Concept #1. At the same time, they are fundamental components of an attention-grabbing light display around the vehicle. In this sophisticated orchestration of the exterior and interior lighting in harmony with specially arranged sound elements, the front light strip divides into small triangles which flicker in rhythm. Starting from the illuminated radiator grille, light effects also move in time to the music along the sides of the vehicle to the rear diffuser.

Of course, many of the features seen on the Concept #1 will not be adopted for the production car. However, recent pictures of the car, albeit camouflaged, show that the concealed door handles will be present although those ‘suicide doors’ which open in opposite directions will not. Such doors often appear in concept cars but rarely continue into production models.

Prototypes undergoing testing in winter conditions in China.

Final testing of prototypes
Prototypes have been undergoing endurance testing in winter conditions and aerodynamic work was done at the China Automotive Engineering Research Institute in Chongqing. Testing in the facility’s wind tunnel showed the smart #1, as the new model will be known, to have a drag coefficient performance of 0.29 Cd. This is thanks to the features like the flush door handles as well as an Active Grille Shutter (AGS) to lower wind resistance.

Win tunnel testing has shown the cd to be 0.29, important for an EV especially which needs low wind resistance to go further.

The smart #1, which will be the brand’s first all-new production car as a purely electric brand, will be unveiled on April 7, 2022 at STATION-Berlin, a historic landmark and disused train station in the German capital.

Coming to Malaysia too
Proton Edar has been appointed distributor for Malaysia and Thailand so we should be seeing the smart #1 on Malaysian roads in future. They are unlikely to be associated with the Proton brand and would be an additional business venture for the subsidiary which handles sales and marketing in the Proton Holdings Group. Proton’s own electrification program would likely start off with hybrids and then move to fully electric vehicles, perhaps towards the end of the decade.

 

 

The future of the auto industry is electric and Proton does not intend to be left behind. Soon, electric vehicles may appear in Proton showrooms although they may not be Proton products. The Malaysian carmaker has signed a Memorandum of Agreement (MOA) with China’s smart Automobile Company (smart) which is a joint-venture company between Mercedes-Benz AG and Zhejiang Geely Holding Group, the parent company of Proton.

The agreement will see Proton collaborating via Proton Edar with smart to introduce the latter’s range of New Energy Vehicles (NEV) into the ASEAN automotive market. For a start, Proton Edar will be appointed as the importer, distributor and dealer for smart in Malaysia and Thailand. smart Automobile (Nanning) Sales Co. Ltd. (a  fully owned subsidiary of smart Automobile), will fulfil the role of a gateway for smart to the region.

NEVs are battery electric vehicles (BEVs) which are a new generation of vehicles that will be designed by the Mercedes-Benz Design network and developed by the Geely global engineering network. Production is in China for global markets. As part of the vehicle-development program, the smart product portfolio will be extended into the fast-growing B-segment that are in line with smart’s brand positioning with a focus on pure premium electric and connected vehicles.

“With the signing of the MoA, Proton is taking its first steps on its New Energy Vehicle strategic journey. By  collaborating with smart, we will be able to gain experience in the selling, servicing, and charging of NEVs and build up the skill sets we require to be a force in ASEAN’s rapidly expanding NEV sector. This is also an opportunity to tap on smart’s customer base, which will open up more opportunities for the Proton brand,” said Dato’ Sri Syed Faisal Albar, Chairman of Proton.

Marketing in Malaysia and Thailand
The MoA with Proton Edar is for the company to establish a multi-level sales and service network in Malaysia and Thailand, as well as a brand experience centre and a number of sales locations, providing the two markets with sales and aftersales services for smart vehicles.

From the description of the MoA, it does not appear that there is any technical collaboration such as transfer of technology or product development and the statement also stresses that ‘currently, there are no plans to collaborate beyond the tenets of the agreement’. This would mean that smart vehicles will be imported and distributed by Proton Edar as an additional business activity, and the vehicles will also not use the Proton brand.

However, as mentioned by the Proton Chairman, it will be an opportunity for the carmaker to gain experience and knowledge about electrification and BEVs which it would also have to offer at some point in the future. Whether the relationship with smart evolves into something broader (eg joint product development) remains to be seen.

The Proton EMAS city car concept by Giugiaro in 2010 was proposed with a hybrid electric powertrain.

Electrically-powered cars are not unknown at Proton. In the 1990s, the first known project was initiated with a company in California to develop electric Wiras, but it never went far. Then, eleven years ago, the company’s EMAS prototype city car proposed by Giugiaro had a hybrid electric powertrain. It has also done R&D on electric powertrains over the past 10 years but has not brought a model to the market.

Proton Saga EV prototype displayed in 2012.

History of smart brand
As for smart, the name may be familiar to some Malaysians as the original smart cars were sold in the mid-2000s, imported by DaimlerChrysler Malaysia (now Mercedes-Benz Malaysia). The smart company (which was founded by the man who created the Swatch watches) had been acquired by Mercedes-Benz which invested heavily to make city cars. However, it may have been a bit ahead of its time and though having a clever design (the vehicles used combustion engines), the relatively high prices and compact size were not so appealing globally. Perhaps the Japanese would have appreciated it but they already had their own kei cars.

Mercedes-Benz tried to make the smart business work and even tried to offer a larger model called the smart forfour that sat on a Mitsubishi Colt platform. That too didn’t sell too well and smart as a company was closed down, with the products being placed under the Mercedes-Benz division up to 2019. To try to keep the brand going, Mercedes-Benz formed a partnership with Geely which would see smart-branded vehicles – using electric powertrains – being developed and produced in China for sale globally.

The original smart cars were sold in Malaysia in the mid-2000s by DaimlerChrysler Malaysia (now Mercedes-Benz Malaysia).

“The smart brand has a unique value and global influence, it has grown to be a leader in urban mobility. Geely Holding will fully support the smart brand with its full advantages in R&D, manufacturing, supply chain and other fields into the joint venture and support its development in China and globally. We will work together with Mercedes-Benz to transform the smart brand into a leading player in urban premium, electric and connected vehicles to successfully develop the brand’s global potential,” said Li Shufu, Geely Holding Chairman.

Third year of growth in Proton sales in spite of challenging conditions

Mercedes-Benz AG and China’s Zhejiang Geely Holding Group have formally established a global joint venture company to handle the German carmaker’s smart brand. Pending regulatory approvals, the company will have its global headquarters in Hangzhou Bay, Ningbo with operational sales functions in both China and Germany.

The total registered capital of the joint venture will be 5.4 billion RMB (about RM3.18 billion) to transform smart into a leading player in premium-and intelligent electrified vehicles. Both parties will equally contribute equally, with the share of Mercedes-Benz mainly covered by the contribution of the smart brand.

Mercedes-Benz and Geely Holding gründen ein globales Joint Venture zur Weiterentwicklung von smart Daimler and Geely Holding form global joint venture to develop smart
A signing ceremony in March 2019 marked the beginning of establishing the joint venture to produce and market smart cars.

New EV model to be produced in China
A new generation of smart electric models will be assembled at a new purpose-built factory in China with global sales due to begin in 2022. The new generation will be designed by the worldwide Mercedes-Benz Design network and developed by the Geely global engineering network. As part of the vehicle-development program, the smart product portfolio will be extended into the fast-growing B-segment that are in line with smart’s brand positioning with a focus on pure premium electric and connected vehicles.

“The joint venture will bring the next generation of zero-emission smart electric cars to the Chinese and global markets. We look forward to continue our collaboration to bring desirable products and services to customers around the world,” said Ola Kallenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG.

smart

Boardroom composition
The board of directors of the new joint venture will be made up of 6 executives with equal representation from both parties. On the German side, representatives will be from Daimler AG and Mercedes-Benz AG. Geely board representatives will include Geely Holding Chairman Li Shufu, Geely Holding President, Geely Auto Group President & CEO An Conghui, Geely Holding Executive Vice President & CFO Daniel Donghui Li.

Tong Xiangbei has been appointed the new global CEO of the smart joint venture and will oversee all operations relating to the brand including sales, marketing, R&D, production and after sales. Tong has more than 2 decades of experience in the automotive industry. Before joining the smart joint venture, he has worked for global automotive companies in the USA and in China.

smart
Production line at the smart factory in France.

“The smart brand has a unique value and global influence; it has grown to be a leader in urban mobility. Geely Holding will fully support the smart brand with its full advantages in R&D, manufacturing, supply chain and other fields into the joint venture and support its development in China and globally. We will work together with Mercedes-Benz to transform the smart brand into a leading player in urban premium, electric and connected vehicles to successfully develop the brand’s global potential,” said Li Shufu.

History of smart
The story of smart cars goes back to the early 1980s when Nicolas Hayek, the CEO of the company making Swatch watches, had an idea to apply the same concept of personalisation to making and retailing cars as what was done for the watches. Initially, Volkswagen was involved in the project but Hayek later tied up with Mercedes-Benz. By 1996, the German carmaker took control of the company making smart cars and embarked on a more aggressive growth plan.

smart

smart cars

2005 smart fortwo
First generation of the smart fortwo was sold in Malaysia for a while.

The little smart cars found a niche as city cars but due to having to meet the demanding and high standards of Mercedes-Benz in the safety, they were not cheap. The brand also did not contribute profits and in fact, lost a huge amount of money.

However, Mercedes-Benz didn’t give up and modernised the factory in France to be more productive and cost-efficient. The third generation started rolling out in 2015 and is sold in over 40 markets worldwide. To date, 2.2 million cars have been sold since 1998.

Geely Auto retains No.1 Chinese brand position for third consecutive year

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