The smart fortwo electric car Debuts in the United States

With an unparalleled eco-heritage, smart developed the electric drive as the next logical extension of the fortwo platform and continues to be a trendsetter in addressing issues facing urban mobility and conservation. smart USA Distributor LLC, a subsidiary of Penske Automotive Group, Inc. (NYSE: PAG), is launching a program this fall that will place electric drive vehicles with like-minded partners in select regions of the country.

“The smart fortwo electric drive is the ultimate statement on innovative automotive conservation and further defines the brand’s independent spirit,” said Jill Lajdziak, president of smart USA. “As the United States sets goals on CO2 reduction and oil independence, the smart fortwo electric drive enters the market at the right time and in the right place as the purist’s play in transportation electrification with a no compromise design.”

When conceiving the smart concept more than 20 years ago, Daimler developers anticipated the need for an alternative powertrain and factored the integration of electric drive components into the first smart concept. In integrating the components and battery for an electric drivetrain, designers did not make sacrifices to the smart fortwo’s safety, agility, comfort and space resulting in a smart fortwo electric drive that looks just like its combustion engine counterpart with the same exterior footprint and large amount of interior head and legroom that have come to define smart.

smart USA will begin deploying a fleet of 250 electric drive vehicles across the United States this fall, targeting key electrification leadership cities and Department of Energy grant areas. smart USA is targeting companies, municipalities, organizations and individuals interested in making a passionate statement on conservation and environmental awareness. Partners for vehicle placements will be announced later this year, and series production for consumer sales in smart center dealerships will begin in 2012 with the 2013 model year.

The United States’ fleet of 250 electric drive vehicles will begin arriving in October 2010 and are the second phase of a three-phase program. Phase one started with the placement of 100 electric drive units in London in 2007. Phase two is producing 1,500 cars for cities in Europe, the United States and Canada as well as selected markets in Asia, and first deliveries started in Germany late last year. Phase three will be series volume production starting in the 2012 model year.

The phase-two smart fortwo electric drive vehicles arriving in the United States this year are full electric vehicles, powered by 30 kW drive motor and 16.5 kWh lithium-ion battery. Using a standard 220V outlet, it takes only three and a half hours to charge the battery from 20 to 80 percent of its capacity and less than eight hours to fully charge it. The battery can also be charged using a common household 110V outlet. The vehicles can reach highway speeds and offer a range of 82 miles on a single charge.

The U.S. pilot program will provide third generation technology developers with performance experience in the breadth of different geographies and climates that make up the continental United States. The information gathered in the phase-two vehicle research will establish the performance, range capability and recharging time of the series production vehicles with third generation technology.

Ecology is a hallmark of smart fortwo, from the environmentally friendly manufacturing process in Hambach, France, to the recyclability of 95 percent of the vehicle’s parts. Additionally, the vehicle’s diminutive size translates to less material consumption in its production and a practical vehicle concept for low cost commuting and other urban travel.

smart USA Distributor LLC, headquartered in Bloomfield Hills, Michigan, is the exclusive distributor of the smart fortwo in the United States and Puerto Rico and is a wholly owned subsidiary of Penske Automotive Group, Inc. The smart fortwo is a brand of and is manufactured by Daimler AG. This technologically advanced vehicle achieves an estimated 41 mpg on the highway* and is an ultra-low emissions vehicle, as certified by the State of California Air Resources Board. The vehicle is 8.8 feet long, 5.1 feet tall and 5.1 feet wide and comes equipped with many functional and safety features found in most luxury models. smart is currently sold in 40 other countries, and more than one million smart fortwos have been sold since 1998. The smart fortwo is available in five trim levels ranging in price from $11,990 to $20,990.

Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 324 retail automotive franchises, representing 40 different brands and 25 collision repair centers. Penske Automotive, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 172 franchises in 17 states and Puerto Rico and 152 franchises located outside the United States, primarily in the United Kingdom.

Penske Automotive, through its wholly-owned subsidiary smart USA Distributor LLC, is the exclusive distributor of the smart fortwo vehicle and related parts in the United States. smart USA supports over 75 smart retail centers in the United States and Puerto Rico. Penske Automotive is a member of the Fortune 500 and Russell 1000 and has approximately 14,100 employees. smart and fortwo are registered trademarks of Daimler AG.