New smart fortwo, forfour revealed

The third-generation smart – now safer, roomier and available with a proper automatic transmission – had its world premiere in the hipster capital of Germany, Berlin, which is telling.

Two models have been revealed, the tiny 2.69 metre long two-seat 'fortwo' and 3.49m four-seat 'forfour' and both are about as non-conformist as you can get in today's world of mainstream production cars. 

The new smart cars boast evolutionary new designs with trademark ultra-short overhangs, the cabin is unusual but stylish, the engine remains in the rear under the boot, not in the front, and the turning circle is so tight the microscopic car has to be careful of T-boning itself.

It's about as far removed from an SUV – in size and function – as you could possibly get. In other words, it's too cool for school. Perhaps that's why Italy is one of smart's top three markets?

"No-one combines functionality and emotionality as well as we do, as the inventors of individual urban mobility," said smart boss Annette Winkler. "The new smart fortwo and forfour adopt the proven concept while offering more of just about everything – more space, more colour, more equipment ... and even more fun in the city!"

Both three and five-door models are offered with a pair of tiny three-cylinder engines, a naturally aspirated 1.0-litre petrol engine worth 52kW/91Nm, and a turbocharged 0.9-litre engine that hikes power to 66kW/135Nm. Engine stop-start systems are also fitted, designed to save fuel in urban driving. 

A less powerful 45kW engine will be available in Europe at a later date, and all vehicles are available with a five-speed manual or a new six-speed dual clutch auto.

If the car gets the green-light for Australia, a decision that won't be made for another 12 months at least, the 52 and 66kW engines are likely starters, paired exclusively with the dual-clutch automatic transmission.

By squirreling the engine away in the rear and ensuring the rear wheels propel the car, the front wheels have one less job to do, in turn providing the smart fortwo an impressive turning circle of just 6.95 metres, the world's tightest according to smart. In other words, you can almost do a U-turn on a bike path. 

The forfour is not quite as nimble, its 8.65 metre turning circle close to the previous fortwo's, and both cars feature a Crosswind Assist safety function as standard, aimed at reducing the effect of wind gusts on the tiny cars. Forward collision warning and lane keeping assist systems are optional, and smart says the new cars are safer than ever thanks to extensive crash testing and a tougher tridion safety cell that surrounds passengers.

Boot space in the fortwo is improved over its predecessor, now 260 litres so you can fit more than a pizza box in there, and passenger space for two people has also improved. The bigger smart forfour has 185 litres of boot space which is not much, but can be expanded to 730 with the rear seats folded down. 

The fortwo has a split tailgate for quick loading, and the front passenger seat in both models folds down too. The latter allows for a longer load space, which will please Ikea flat-pack aficionados: the forfour has a 2.22 metre load length in this regard. 

Efficient in size and packaging, and especially its physical 'foot print' on the road, the funky new smart car is a co-operative effort with Renault. It's based on the same platform and shares engines with sister car, the Renault Twingo, which helps reduce development costs. 

The Renault Twingo is not coming to Australia says the French company, and with the $13,990 Volkswagen up! axed in Australia after slow sales, the new fortwo and forfour will have a tough slog ahead of them.

Mercedes-Benz, which owns smart, is under no illusions that bringing its new four-wheeled funkatron to Australia, and more importantly turning a profit, will be easy. There will be demand for the unique car here in Australia, but it's just how much demand that has Benz sweating.

Mercedes-Benz Australia (MBAu) PR boss, David McCarthy, told motoring.com.au "We wouldn't show this car to Aussie media if it wasn't on our minds and wasn't under active consideration," but he stopped short of confirming its local arrival.

The sticking point is price and profitability, he explained, noting that with so much competition under the $20,000 mark, it'll be a hard sell for the company.

"In the end its price. I don't imagine it's going to be any cheaper, but it's a better value proposition. But you've got Mirage, Swift and others. They are different cars, it's not the same buyer, but people look at the smart and go "it's still 20 grand". 

Although the current second-generation two-seater smart fortwo is still on sale in Australia for $18,990 drive-away, only two cars were sold in June 2014, and a total of 38 smarts have found homes in the first six months of the year. 

Its replacement is likely to be more expensive if it heads here, probably around $20K, and the larger forfour would be positioned in the low to mid $20,000 bracket.

"It's 50-50, that's how close it is," McCarthy said of the decision to bring the smart duo Down Under. 

That the FIAT 500 has been a success in Australia may buoy sentiment, but that car is priced from $15,000, and McCarthy says any smart cars arriving in Oz would be well equipped, and a stripped-out version with steel wheels would not be considered.

Standard features on European models, which start at €11,000 for the smart fortwo, include central locking, LED daytime driving lights, Bluetooth, cruise control and electric windows.

Up-spec models get a 3.5-inch colour display, heated seats and a leather steering wheel, while the multimedia infotainment systems feature "comprehensive smartphone integration, real-time navigation and intuitive operation with touchscreen" says smart. 

Taking the cars upmarket, customers can option primo JBL stereos, which in the fortwo is a 240W eight speaker system, and in the forfour a 320W 12-speaker unit. Deliveries of the new smart will begin in Europe in November 2014.

There's a lot riding on the new smart for Mercedes-Benz. The unique city car has sold 1.5 million vehicles since the mid 1990s; but if the new model is to succeed, globally, smart will need to find more customers in more markets, and in this respect Australia could end up being an important player.

Whether hipsters will pay $20,000 for a smart car remains to be seen, but McCarthy said for the car to be given the green light in Australia it would need to sell "at least double if not more of the [current] volume".

Can the price of the car be reduced in Australia to entice more
new customers? The head of smart, Annette Winkler, told motoring.com.au
"I can't tell you for Australia, it's not decided yet".

Her boss, Chairman of Daimler AG and head of Mercedes-Benz Cars, Dieter Zetsche, was more positive, confirming the new smart costs less to manufacture and that savings could be passed on to customers.

"Of course we were attempting to address the cost and we were successful in this regard. Now as we said in Europe pricing for fortwo will be more or less constant but with much more content. I can't tell you how this will translate to Australia, but certainly we have a chance to position this vehicle competitively."