Interview: Smart boss

‘We’ve got this big reset moment for the brand’

Smart’s UK CEO David Brownetalks to Ted Welford about the firm’s new cars and how its models will be sold in the future.

Imagine a business known for years for selling a particular product suddenly changing and going in a completely different direction.

Like McDonald’s deciding to no longer sell its 99p cheeseburger (sorry, £1.19 – damn you, inflation) and moving to fine dining. Baffling, right?

Well, that’s exactly what’s happening with Smart. The Smart car has become synonymous for its dinky size, meaning its owners can cheekily park almost wherever they like. But now all that is changing as Smart adapts and returns with a bang.

That ‘bang’ is an SUV. Yes, another SUV. And one that’s not particularly small or clever – on paper at least – and at 4.27m in length, it’s larger than a Nissan Juke. So we’re not getting off to a great start, and it doesn’t improve when you hear this new electric SUV is called the #1 (pronounced ‘hashtag one’).

Originally Daimler’s baby, since 2019 Smart has been a joint venture that comes from a 50:50 partnership between Daimler – now known as MercedesBenz Group – and Chinese automotive giant Geely (owner of Volvo and Lotus). The #1 is its first car – an electric SUV capable of up to 272 miles on a charge – and one that’s been designed by the Germans and engineered and built by the Chinese.

It’s set to launch in the third quarter of 2023, with the UK one of the most important new markets, and at the helm of Smart’s new UK team is David Browne. Formerly of Jaguar Land Rover, where he was heavily involved with the launch of Jaguar’s first EV, the I-Pace, Browne tells us it was this car that got him interested in Smart’s reinvention. For context, Smart has sold purely EVs since 2019, and that won’t be reversed.

‘We’ve got this big reset for the brand and it gives us an opportunity to challenge all of those existing conventions and do something different and build something afresh,’ says Browne.

‘The #1 is a very different proposition {to the ForTwo and ForFour] that will appeal to different customers. We’re moving into a different territory. Small SUVs are such a big part of the UK market and that was the obvious first place to go, but also in a way that’s very much “Smart”.’

It was the ForTwo (originally called the City Coupe) that became the iconic Smart car, but in recent years the demand for these has been waning, with Smart registering just 941 cars in the UK this year (to the end of August). Bentley shifted more cars in that time.

Smarts have always been sold in a corner of a Mercedes-Benz dealer and Browne is clear that this relationship will remain, and that ‘Smart will not have its own sites’.

Small SUVs are such a big part of the UK market and that was the obvious first place to go, but also in a way that’s very much ‘Smart’.

We’ve been very lucky to inherit a great network as part of what Mercedes has already established.

David Browne Smart’s UK CEO

The all-new Smart #1

He said: ‘We’ve been very lucky to inherit a great network as part of what Mercedes has already established, and we’re looking to build on that as we go forward with those existing partners.’

When the #1 launches next year, it will follow Mercedes’ lead and be sold purely via an agency sales model.

‘Mercedes are very well advanced with those discussions with retailers, and as we’re engaging with the same retailers, it’s fair to say that approach has been appreciated by our partners.

‘As an organisation, we’re quite lean and want to keep our costs to a minimum, and that’s ultimately why the retailers are an extension of us as Smart UK. They’re our eyes and ears on the ground and engaging with customers, so it’s really important to build relationships with the network.’

Browne said there had been ‘absolutely no concerns raised’ by the retail network ‘in terms of the implementation of that agency relationship, and actually retailers are welcoming it’.

The #1 will be sold in retailers as well as online, with Browne particularly proud of the fact a customer could buy a new Smart entirely online in just 15 minutes if they wanted to.

‘A retailer still plays a hugely important part of that journey, and even if someone chooses to engage with us completely online, make that purchase online, our retailer network is still part of the process and we will expect them to engage in terms of facilitating the handover of the car and also service down the line.’

With the arrival of the #1, Smart is hoping to see significant sales increases on the current mediocre figures.

‘In 2024, we will have our first full year, and I think it’s perfectly feasible for us to get to the volumes we did at a peak before with Smart. So that means delivering five-figure annual sales.

‘We’re already seeing a lot of demand for the car across Europe and we may be a little bit supply-constrained – that is the bit that’s reining in my aspirations at the moment.

‘All the signals we’re seeing, the rate of EV penetration in the UK accelerating as rapidly as it is, I’m concerned I’ve undercalled the volume. There’s an element of “I could do more”.’

The #1 is the first in a number of Smart hashtags. The firm won’t confirm what’s next but it’s safe to assume there’ll be a #2, #3, etc.

Time will only tell if Smart’s reinvention will be a one-hit wonder or if it should have just stuck to what it knew best.

The Smart cars

City Coupe

(1998-2002)

The original Smart car, the City Coupe launched in 1998 and was later rebranded as the ForTwo.

Crossblade

(2002)

Smart’s strangest model to date. The Crossblade was a concept car turned into production. Just 2,000 were made, and they’re worth north of £20,000 today.

Roadster

(2003-2006)

Smart’s first and only sports car weighed just 800kg but it was let down by a semi-automatic gearbox.

ForFour Mk 1

(2004-2006)

The first Smart that was sold with more than two seats, the Forfour was designed to be more familyfriendly, although slow sales meant it was canned after just two years.

New ForTwo and ForFour

(2015-)

Introduced in 2015, it saw the return of the ForFour and a new-generation ForTwo, both based on a platform shared with the Renault Twingo. Sales switched to EV-only in 2019.

Smart #1

(2023-)

Smart’s new era kicks off with the #1 – a high-tech, electric SUV capable of 272 miles on a single charge.

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