For Just Two Years, Smart Sold Cars In America With Turbochargers And Honest Three-Pedal Manual Transmissions

The Smart Fortwo was a polarizing car when it was sold new in America. For much of its existence, many Americans thought the Fortwo was too slow, its suspension was too harsh, its transmission was too rough, and the engine returned fuel economy that wasn’t good enough. For just two years, Smart solved nearly all of those issues and created a Holy Grail in the process. During that short time, American buyers were able to get a Smart with a quick turbocharged engine, decent suspension, and a fun three-pedal manual transmission. You can even find a few for sale right now!

One of these Holy Grails of Smarts in America can be found on Cars & Bids right now. Amusingly, at least three people have sent me this listing, including the staff of Jalopnik. I have been on a secret search for the perfect Smart Fortwo with a manual transmission, so the timing on this one is remarkable. Sorry to disappoint you, but I will not be bidding on this car.

This little-known variant of the North American-spec Smart Fortwo doesn’t look like it, but it’s likely one of the rarest “regular cars” of the 2000s. Fewer Smarts were sold with manual transmissions than the Nissan Murano CrossCabriolet. There are fewer of these cars than the entire production of Volkswagen Phaetons or Volkswagen Passat W8s in America. If my calculations are correct, there are probably just as many Smarts with real manual transmissions out there as there are Volkswagen Passat W8s. In other words, it’s sort of a huge deal to see any of these little cars come up for sale.

I would even go as far as to say that the 2016 and 2017 Smart Fortwo is such a huge improvement over older examples that, if you hated Smarts in the past, these cars could bring you back around. The manual transmission is just a sweetener.

Trendy, But Sometimes Polarizing

I’ve explained the history of Smart in America rather extensively, so I’ll spare you reading it again. Click here to read that history. Instead, I just want to point out why the third generation of the Fortwo was such a leap forward.

The first generation of the Fortwo, which was originally named the City Coupé, launched in 1998. The City Coupé was only a touch wider than a Japanese Kei car, but much shorter at only 8.2 feet long. These cars were so short that you could park them perpendicular in a parallel space and still be within the lines. But these cars were more than just tiny, as they had colorful plastic panels that could be exchanged out like you would watch bands, and interiors that looked like a trendy sneaker.

But perhaps the most striking part was the vehicle’s safety cell. Mercedes engineers went through a lot of work to make the vehicle safe, and normally, a vehicle’s safety structure doesn’t really add to the vehicle’s look. That wasn’t the case here, as the steel Tridion Safety Cell, as it was called, was also a prominent design element, and was often painted in a color that contrasted the plastic panels.

Unfortunately, for how cute and weird Smarts were, Mercedes struck out on performance. At launch, the City Coupé had a rear-mounted 599cc turbocharged Suprex three-cylinder engine that was mated to a six-speed automated-manual transmission. These engines made between 45 horsepower and 61 horsepower before any tuning. The output wasn’t that bad, and the engine drove the rear wheels, too. What was a hindrance was reliability, as it was common for these early engines to need overhauls before 100,000 miles, with some needing overhauls as early as 60,000 miles.

The transmission, a single-clutch manual shifted by computer, was notorious for taking its sweet time to reach the next gear. Then there was the suspension, which offered little respite from rough roads. Mercedes also baked in poor handling characteristics on purpose, namely heavy understeer, to reduce the chances of the car rolling over in an emergency maneuver.

Still, the City Coupé would become a popular city car. Smart would also improve the concept over time, launching a slightly more reliable 698cc turbo three, an astoundingly reliable and efficient 799cc turbodiesel triple, and transmission software improvements that smoothed things out a bit. Then came subsequent models, like the four-door Forfour – which was really a Mitsubishi Colt underneath – and the sporty Roadster. Smart even put a concept car into limited production with the Crossblade, and then developed an SUV for America, the Formore.

The Smart Most Americans Know

Sadly, while Smart made fun cars, it burned through billions of Euros. In 2006, the company was liquidated. From 2007 to 2014, Smart would have only a single model in the entire world, the Fortwo. In 2007, the Fortwo entered its second generation. It got a little wider, a little longer, and a bit more highway-friendly. The gas engine became a hardy 70 HP naturally aspirated three-cylinder from Mitsubishi, while the old, nearly bulletproof diesel also carried over. Smart also continued to be married to an automated-manual transmission. Only this time, it had only five gears. It also still took some time to get to the next gear.

Smart finally officially launched in America for the 2008 model year. There are a touch under 100,000 Smarts in America, and the vast majority of them are this second-generation model. American car journalists complained about the harsh ride, slow transmission, and unimpressive engine. Indeed, while the rear-mounted Mitsubishi power plant has proven itself to be amazingly reliable, it returned 41 mpg at best in EPA testing. While that did make the Fortwo the most fuel-efficient car in America that wasn’t a hybrid or a diesel, Americans still expected more. The old Geo Metros easily got over 50 mpg, so why couldn’t a Smart?

Smart did have the correct engine for the job, a diesel that got an honest 70 mpg, but never brought it over to America. At any rate, sales in America were good only for a single year, 2008, and then never recovered.

Third Time’s The Charm

The greatest change to the Fortwo came in 2014. Smart flipped the script with the third-generation car.

This time, Daimler partnered up with the Renault-Nissan Alliance, which sought to build the next-generation Twingo. The cooperative engineered the new architecture in three distinct sections: the front clip (radiator, cooling fans, steering gear, battery, and HVAC components), the middle section (4-person seating), and rear section (powertrain). Building the car in sectors like this meant that Renault was able to get its four-door Twingo, Smart was able to make a second generation of the Forfour, and then create the Fortwo by replacing the 4-seater middle with a 2-seat assembly.

How close were the then-new Smart Fortwo and Forfour related to the Renault Twingo? They share 70 percent of their parts with the Twingo. Smarts have unique bodies and interiors, but they’re largely mechanically the same as the Twingo. This was good for Smart.

The new 898cc triple Mercedes-Benz/Renault plant under the hatch made a healthy 89 HP with a turbocharger, and the single-clutch auto-manual transmission finally died, replaced with a snappy DCT. The official 60 mph acceleration time is 10.4 seconds, but in years past, I have timed my 2016 Fortwo DCT sometimes doing the deed in under 10 seconds in Sport mode.

The car got wider, more comfortable, and handled so much better. Seriously, the new Fortwos are far more fun to zip around than you’d think they have any right to be. Smart also didn’t give up on keeping the car tiny, too. Third-generation cars didn’t get any longer than second-generation models, and measured only 8.8 feet long.

But the best part was probably an option that had never been offered on any Fortwo in the company’s history: An honest three-pedal five-speed manual transmission. Yep, if you didn’t want a computer swapping cogs for you, Smart finally gave you the option to do it yourself.

Third-generation Smarts launched in America in the 2016 model year, and gasoline models were discontinued after the 2017 model year. Smart pulled out of America entirely at the end of the 2019 model year. That means that all gasoline-powered third-generation Fortwos fit into the 2016 and 2017 model years. Only 9,282 Fortwos were sold in America between 2016 and 2017. Of that lot, a small percentage were electric.

Sadly, Smart USA never broke sales up by variant or transmission. If we’re being generous and say that five percent of all of the Fortwos sold in America in 2016 and 2017 had manual transmissions, that’s only 464 units.

This Manual Smart

All of this to say that the 2016 Smart Fortwo Passion Coupe that’s currently for sale on Cars & Bids is a rare unit. It’s not the rarest Smart officially sold in America, as the Ed Hardy, Brabus Tailor Made, and ForJeremy limited editions were each far rarer, but it’s not a car you will see often.

You could mistake this car for just another normal Fortwo, and I wouldn’t blame you because the base car doesn’t really have anything amazing going on. It’s painted in black and silver, which was a common and not really bombastic color combination for this generation. It also doesn’t have the Sport package, which added a 10mm suspension drop, stainless steel pedals, chrome exhaust tip, and wider 16-inch wheels. This car also doesn’t have the LED lighting package, either.

The interior has much of the same going on. The white interior accents are a nice touch, though they will be hard to take care of. Smart’s white interiors have a tendency to get stained up, and this car has plenty of stains to show as proof. Otherwise, the car is a pretty base Passion spec, including the base stereo, base speakers, and no seat heating. The vehicle doesn’t even have fog lights or a panoramic roof.

Basically, the entire reason to buy this example is its manual transmission. It’s a good reason, too, as adding a row-your-own transmission improves the experience. Smart shifters aren’t as satisfying or as clicky as a Honda or Mazda transmission, but they are engaging and fun. Add in the much-improved handling, the sharp steering, the boosted engine, and the refined suspension, and you have the recipe to generate smiles. Even Car and Driver was impressed with the third generation’s improvements.

The cheapest Fortwo with a manual was $15,400 in 2016 ($20,973 in December 2025 money). That got you a Pure with an even plainer interior and only steel wheels. The base Passion with a manual, which is pretty much what this car is, was $16,890 ($23,002 in 2025 money) when new. It was possible to load up your Passion with options and still keep the manual transmission. I have seen cars like those a handful of times, but they’re even rarer than just seeing a Smart with a manual.

If you’re wondering why I’m not a bidder, it’s because I’m looking for a manual with a lot more color and, ideally, a few more options. But if you aren’t as picky as I am, I think this car should be a fine way to enjoy a rare Smart. Amusingly, I generally keep track of the manual Smarts for sale in America, and remember seeing this one for sale on Craigslist in Lake Havasu City, Arizona, back in December for a touch under $9,000. Apparently, the seller acquired the car in October to tow behind a motorhome and then changed their plans.

There are a few other manual Smarts for sale in America right now. There’s one for sale in San Jose, California, for $6,666, one for sale in Marysvale, Utah, for $6,600, and one in Charlton, Massachusetts, for $4,500. That last one was in a crash and was repaired poorly with Bondo. It also has clutch problems. Otherwise, I would have bought it by now. I would buy the one in Utah in a heartbeat if it weren’t located in the middle of nowhere and hours from the nearest airport with airline service.

It’s hard to say where this auction will land. This car has 92,400 miles, and other Smarts with manual transmissions and high mileage seem to fall in that mid-$6,000 range. But this is Cars & Bids, where sometimes people spend tons of money on a weird car. So, who knows?

What I do know is that this car is one of the Holy Grails of Smarts in America. If you don’t mind the stains, the mileage, or the lack of color, this car should be a ton of fun. You’ll get a cute little rear-engine, rear-wheel-drive car that’ll park anywhere, score around 40 mpg, and has a choose-your-own-adventure transmission. Dare I say, this little car can probably even change the mind of a Smart hater.

Okay, I have to turn away now before I make a bad financial decision …

Top graphic images: Cars & Bids