Daimler Smart Fortwo Car in the US

Case Code: BSTR315
Case Length: 12 Pages
Period: 2008-2009
Pub Date: 2009
Teaching Note: Available

Price: Rs.300
Organization: Daimler AG
Industry: Auto and Ancillaries
Countries: US
Themes: Entry Strategy, Competitive Strategy, Differentiation

Abstract Case Intro 1 Case Intro 2 Excerpts

Background Note

The history of the Smart dates back to the late 1980s. The idea to build a small car was conceived by Nicolas G. Hayek (Hayek), of Swatch Group. The car was initially called 'Swatchmobile.'

Hayek was looking for an automobile company to produce this car. He initially talked to General Motors Corporation (GM), but the company rejected the proposal because it was skeptical about the profitability of the project.

Volkswagen5 showed interest and in 1991, both the companies started a joint venture to research and develop the small car...

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