ABSTRACT
This chapter highlights important changes, like involvement of changing partners, the level of integration into the Daimler corporation, the scope of the Smart product range, and the specification of the marketing concept. The first Smart Car was produced by Micro Compact Car AG (MCC) in 1998. It was based on the idea of a futuristic mobility concept by the Swiss entrepreneur and founder of Swatch, Nicolas G. Hayek. In March 1994, Daimler agreed to establish the joint venture Micro Compact Car AG (MCC) with Swatch after concessions by Hayek in the areas of branding, design, and technology of the automobile. The economic constraints, cost pressures, and high shareholder expectations forced Daimler to abandon the original mobility concept. Achieving a quick drastic transformation is sometimes only possible with a major change in the management team of the unit concerned. A successful transformation needs both a sound business rationale and an understanding of the resources and the capabilities needed to achieve it.
