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The Smart brand was founded in 1993 as a joint venture between Micro Compact Car, Daimler AG, and the famous watch company Swatch Group. The name Smart comes from "S" (Swatch), "M" (Mercedes-Benz) and the English word "Art" - art. The first pre-production prototype of the compact urban microcar was unveiled at the 1995 Frankfurt International Motor Show. Serial production began in July 1998 at the French DCX plant in Ambache (Lorraine). In 1999, the Swatch Group withdrew from the joint venture, and in 2002, a division of Smart GmbH was formed, structurally part of the Mercedes-Benz Car Group.