It is a radical idea that starts to mature in the heads of the Mercedes-Benz developers in the early 1970s: as they see it, the "car of the future" must question all existing preconceptions of cars and put them to test. Sketches dating back to 1972 show a new, seminal approach. The concept for an ultra-compact car with a length of two and a half metres is subsequently developed by Mercedes-Benz. Johann Tomforde, studio engineer at Mercedes-Benz and development coordinator for the field of "future traffic systems", is responsible for the project.

Although the idea is impressive, technical realisation is not possible at this time due to an inability to meet the company's strict safety standards.

However, nine years later the Mercedes-Benz developers succeed in developing groundbreaking ideas for safety features that only need a small amount of space in a car. First designs using a "sandwich" principle with a raised vehicle floor are tested. But the technical realisation is still not possible on account of the strict Mercedes-Benz safety standards.

In 1991 Mercedes-Benz Design starts the next attempt. The Eco Sprinter and Eco Speedster show cars are developed in cooperation between the Design Concept department in Sindelfingen and the Mercedes-Benz Advanced Design Center in Irvine, California. When Johann Tomforde presents them to the Mercedes-Benz boards in 1993 the enthusiastic response leads to concrete plans for a new kind of vehicle and a new segment: the micro compact car.

The concept, package and safety concept – later to become characteristic features of the smart fortwo – are already clearly apparent in the first studies. Even then the safety concept was brilliantly simple: like a nut, the soft interior is protected from harm by a rigid shell.

In 1989 Nicolas G. Hayek, the inventor of the Swatch watch, announced plans to launch a small city car on the market. The car of the future should appeal to people as a statement rather than a status symbol.

Hayek then sought an experienced partner for the quick and successful realisation of the project. The combination of Mercedes-Benz's vast experience in building cars coupled with Swatch's creative powers brought together two ideal partners for this project. The cooperation results in a unique vehicle concept and a new automobile brand: smart.

Shortly after initial negotiations between Mercedes-Benz and Nicolas Hayek, Micro Compact Car AG is founded. The company headquarters are in Biel, Switzerland. In the search for a production site more than 70 locations worldwide are evaluated. In 1994 Hambach in France is chosen. The first pan-European car brand is born: the company headquarters are in Switzerland, the development centre in Germany, and the car is produced in France. The car is set to conquer the cities of Europe!

Following the start of development in 1994, in 1997 the smart city coupé (later renamed smart fortwo) celebrates its world premiere at the International Frankfurt Motor Show. Production begins in July 1998 in a new plant in Hambach, France. The following October sees the new car being sold for the first time in nine European countries (Austria, Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Spain and Switzerland). In the same year, smart becomes a wholly-owned subsidiary of Daimler-Benz AG (now Daimler AG).

In 1999 at the Frankfurt Motor Show the young brand surprises the world public with a whole host of new model studies. A cabrio version is presented that is based on the smart city-coupé and that opens a whole new dimension to the "closed" micro car community – the roof! The smart cabrio offers pure joie de vivre. From the spring of 2000 the world's smallest production cabriolets roll off the production line and onto European roads.

Thanks to the innovative roof construction, the cabrio version of the smart offers three open-top driving variants: the electrically-operated folding top can be opened to any desired position at the touch of a button. In addition, the electrically locked rear top is very simple to open. And finally, the side roof bars can also be removed and stowed in a compartment specially designed for this purpose on the inside of the boot lid.

Whilst the world is talking about the introduction of the "three litre" car at the beginning of the new millennium, shortly after the presentation at the Frankfurt Motor Show at the end of 1999 smart launches the cdi engine that consumes 3.4 litres of fuel over 100 kilometres. The most economical form of car transport is born and is a great success. More than 140,000 smart cdis are sold up to the introduction of the successor model in 2007.

A special vehicle variant launched on the market in 2002 provides maximum openness - the smart crossblade. It has no doors, no roof and no windscreen.
Its drivers can enjoy a truly unparalleled driving experience under open skies with the sun and wind in their face. All that affects sheer dynamic motoring is a narrow tinted wind deflector stretched across the cockpit area. Instead of conventional doors, the crossblade is equipped with steel safety bars at passenger shoulder height. These swing upwards with the help of a gas-operated strut. A year later smart decides to produce a small series of this vehicle. When the smart crossblade is launched in the spring of 2002, smart partner Robbie Williams snaps up the chance to get his own personal model. Shortly afterwards, the model with the number 8 of 2 000 of the limited crossblade series finds a place in his garage.

The smart roadster and smart roadster-coupé that are launched in April 2003 offer a particularly intensive and sporty motoring experience. These two vehicles continue the tradition of compact, purist roaders which had their heyday in the 1950s and 1960s.

At the end of 2005 production of the smart roadster and roadster-coupé is discontinued. During the two years that these two versions are built on the platform of the smart fortwo they emphatically demonstrate the dynamism of this vehicle concept.

A new, larger three cylinder engine gives the petrol versions of the smart fortwo (previously the city coupé and cabrio) more power. Following the 2003 model refinement, the entry-level version has a 50 hp (37 kW) engine. The higher power smart now delivers 61 hp (45 kW) from 698 cubic centimetres. The new generation of petrol engines complies with exhaust gas standard EU4. The successful 41 hp (30 kW) cdi diesel engine remains unchanged.

Further new features make the vehicles even more comfortable, safe and dynamic. smart offers technologies to customers as standard that otherwise only come as part of the standard spec in higher vehicle classes: the previous stability control system trust plus is replaced by the electronic stability programme esp® as a standard feature, which also works with selective brake intervention to stabilise the vehicle. In addition, esp® includes further functions which enhance the comfort and safety of the vehicle such as hill start assist, brake assist and acceleration skid control.

In 2003 the smart logo and vehicle names are also changed: the city-coupé and cabrio are renamed the fortwo coupé and fortwo cabrio. The car proudly displays its purpose in its name: fortwo – driving fun for two. From this point in time the front also bears the smart ring as the new brand logo.

In the same year the BRABUS versions developed by the joint venture smart-BRABUS GmbH are presented. As early as 2002 smart and the tuning specialist Brabus from Bottropform a joint company. In 2004 smart-BRABUS GmbH opens a new company headquarters in Bottrop - an ultra-modern technology and competence centre costing 16 million euros.

In 2004 smart departs from the principle of two seats and a rear-mounted engine for the first time with the launch of the forfour. The sporty five-door car has unaccustomed dimensions for the brand and opens up a new, highly competitive market segment for smart. The smart forfour is larger than all the brand's previous models. Production of the four-seater smart ends in the summer of 2006 after the decision is made to concentrate solely on the fortwo.

The smart crosstown show car presented at the 2005 Frankfurt Motor Show combines a petrol and an electric engine in a forward-looking hybrid drive. It shows the potential of the unique smart fortwo vehicle concept and arouses curiosity in the reinterpretation of the smart fortwo to be launched in the spring of 2007. However, there are no plans for series production of the open vehicle with a steeply-angled windscreen.

At a technology forum in 2005 smart presents further vehicle studies with alternative drives: in addition to a prototype of the smart fortwo ev (electric vehicle), the company exhibits a smart fortwo with natural gas drive, a mild hybrid and a cdi hybrid.

In 2006 smart presents a concept for an off-road vehicle - the smart formore. As a smart utility vehicle (suv), this all-wheel-drive smart shows the potential of the brand in the compact off-roader segment and conveys the core brand values of innovation, functionality and joie de vivre.

Almost ten years after the first pilot production smarts rolled off the production line the new smart fortwo is launched on the market. The engineers have built on the strengths of this visionary classic and further developed its virtues.

Following the decision to stop production of the smart roadster at the end of 2005 and the smart forfour mid 2006, everything concentrates on the smart fortwo and the successor model planned for 2007. Since 2007 smart has been fully integrated in the organisation of the Daimler business division Mercedes-Benz Cars, which also comprises the Mercedes-Benz, Maybach and AMG brands.