You’ve probably seen them zipping around town or squeezing into tight parking spots. Smart cars were once a common sight in American cities, known for their tiny footprint and easy maneuverability. But then they started disappearing. By 2019, Smart had completely pulled out of the U.S. market.
So, what happened? Why did a brand with such a unique concept leave the American auto scene? The short answer comes down to low sales, high costs, and a market that never quite warmed up to what Smart was offering.
A Concept That Made Sense on Paper
When Smart cars launched in the U.S. in 2008, the idea seemed perfect for urban living. The vehicles were compact, fuel-efficient, and easy to park. For city drivers tired of navigating tight garages and crowded downtown streets, the Smart Fortwo offered something radically different.
Smart has a solid following in Europe, where gas prices are high and roads are narrower. Daimler, the parent company of Mercedes-Benz, hoped to bring that success to the States.
Where Things Started Going Wrong
Unfortunately, the U.S. is a very different kind of car market. American drivers tend to favor size, power, and versatility. Trucks, SUVs, and crossovers dominate the sales charts, and even small sedans have more interior space than a Smart Fortwo.
The Smart car’s minimal storage space, two-seat layout, and modest engine power left many potential buyers looking elsewhere. It wasn’t just about preference—many Americans need larger vehicles for longer commutes, family use, or poor road conditions. The Smart Fortwo just didn’t fit most people’s lifestyle.
Electric Shift Came Too Late
In 2017, Smart decided to phase out its gasoline-powered models in the U.S. and go fully electric. This pivot was part of Daimler’s broader push toward electrification. The electric Smart EQ Fortwo had some appeal, especially in eco-conscious cities, but it faced tough competition.
By the time Smart committed to electric-only sales in America, Tesla and other EV manufacturers were gaining serious traction. The Smart EQ’s limited range of about 58 miles per charge couldn’t compete with larger EVs' longer ranges and better features.
Even among budget-conscious EV buyers, the Smart didn’t stand out. While it was affordable, other EVs offered more space, better range, and more value overall.
Sales Never Took Off
From the beginning, Smart struggled to build a strong customer base in the U.S. Sales peaked in 2008, the year it launched, with just over 24,000 vehicles sold. From there, the numbers declined steadily. By 2018, Smart sold fewer than 1,300 cars in the entire country.
Dealerships began pulling back. Low demand, limited marketing, and shrinking inventory continued to fade Smart’s presence. In 2019, Daimler officially announced it would stop selling Smart vehicles in the U.S.
It Wasn’t Just About the Cars
Smart’s exit wasn’t entirely due to the cars themselves. Maintaining a brand presence in the U.S. is expensive. Between compliance with American regulations, parts distribution, marketing, and dealer support, the costs can outweigh the benefits if sales don’t hold up.
Daimler chose to focus its EV resources on other ventures, including the Mercedes-Benz EQ lineup. The decision to leave the U.S. allowed them to invest in products that had a stronger future in a highly competitive market.
Still a Favorite for Some Drivers
Even though Smart cars are no longer sold here, there’s still a loyal community of owners who love their unique design and simplicity. For short city commutes, tight parking spaces, and efficient local travel, the Smart Fortwo still checks a lot of boxes.
Parts and service for existing Smart vehicles are still available, especially at specialized repair shops like CK Auto Exclusive. If you own one, keeping it in good shape is more than possible, and it might even become a collector’s item in time.
CK Auto Exclusive – Smart Car Specialists in Santa Rosa, CA
At CK Auto Exclusive, we’re proud to continue servicing Smart cars. If you own a Smart Fortwo and want to keep it running at its best, our team has the experience and tools to make that happen. Visit us in Santa Rosa for expert care and personal attention for your unique vehicle.