Complaint Single throttle lift-off clunking noise from the side shaft when moving off (audible at the outboard end). The clunk is heard once when changing from forward to reverse (and vice versa). Note: Sound file in attachment Cause If the complaint is eliminated by experimentally loosening the outboard collar nut (by 1 turn), the problem is due to micromovement in the connection between the wheel bearing inner race and the joint housing of the side shaft. Note: The collar nut must always be replaced after being loosened and must be tightened to the specified torque. Remedy Coat contact surface of side shaft with wheel bearing with Molykote paint. To do this, proceed as follows: 1. Remove o
full bulletin at NHTSA ↗2008 Smart Fortwo powertrain problems
severe Owners of the 2008 Smart Fortwo have filed 30 NHTSA complaints about the powertrain, typically surfacing around 30,000 miles at roughly $2,500 to repair (U.S. federal records, as of July 2026). Source: NHTSA Office of Defects Investigation. See powertrain across all vehicles →
Failure mileage
Complaints
30
Recalls
0
Avg fix
$2,500
| Model year | powertrain complaints |
|---|---|
| 2008 Fortwo (this page) | 30 |
| 2009 Fortwo | 25 |
3crashes
1fire
6injuries
When does it fail?
Of the 30 powertrain complaints filed for the 2008 Smart Fortwo, here's the actual mileage breakdown — failures cluster heaviest at 0-25,000 mi.
0-25k
25-50k
50-75k
75-100k
100-125k
125-150k
150k+
Each bar shows the share of total complaints filed at that mileage range. Peak failure window highlighted. Some owners report problems earlier; some make it well past 150,000 miles symptom-free. Maintenance habits and driving conditions shift the curve as much as mileage alone.
What stands out
Owners have filed 30 powertrain complaints with NHTSA against this vehicle, but no formal recall covers the issue — the federal record reflects what manufacturers have admitted, not everything owners are reporting.
Powertrain accounts for 22% of all owner complaints filed against this vehicle, across 9 categories tracked.
Is there a fix? Manufacturer service bulletins
The manufacturer has issued service bulletins covering powertrain on this vehicle — documented repair instructions, service campaigns, or warranty extensions sent to dealers. A TSB isn't a recall (it's not a free safety remedy), but it's the manufacturer acknowledging the issue and how to fix it.
Source: NHTSA manufacturer communications. Bring the bulletin number to your dealer or shop.
The failure pattern owners describe
The 2008 Smart Fortwo has chronic transmission and shifter control failures affecting numerous owners nationwide. The most frequent complaint: transmission refuses to engage Reverse gear, with shifter moving freely but the gearbox staying in Neutral. Dashboard display often shows wrong position or goes blank. Owners report temporarily fixing this by restarting the engine or waiting 5–90 minutes for a system reset, but the problem returns intermittently—sometimes weekly, sometimes daily.
A more dangerous failure pattern emerges during driving: car loses all gears, screen blanks, engine stalls, and brakes stop working (power assist cuts off). This happens at highway speeds, on ramps, or during lane changes, leaving owners stranded in traffic with risk of rear-end collision. Multiple owners report spending $200–$300 on dealer software updates (out of warranty) with no permanent fix. One owner faced a $3,000 repair quote for clutch actuator, motor, pressure plate, and plate replacement.
Smart's dealerships attribute the problem to software and offer updates; the 2009 model year reportedly resolved the issue. However, no recall has been issued for 2008 models despite complaints filling Smart Car forums. Shift lever assembly replacement failed to prevent recurrence. One additional hazard: the ignition key sits near the gear shift and can be accidentally bumped off while driving, killing all electrical systems without warning.
Same Smart Fortwo powertrain reports on nearby years: 2009
Failure modes owners describe
Failure to shift into or out of Reverse; gear selector misalignment
Transmission refuses to engage Reverse gear, or dash display shows Neutral when shifter is in Reverse position. Shifter moves but transmission does not respond. Problem typically clears after turning engine off and restarting, or waiting 5–90 minutes for system reset. Occurs intermittently, sometimes multiple times per week.
When: Most common in first few years of ownership, reported at 8,400 to 45,000 miles; one owner noted recurring issue over 2 years.
Symptoms owners cite: Shifter moves to Reverse but transmission stays in Neutral; Dash display shows 'N' instead of 'R' when shifted to Reverse; Transmission does not engage after shifter selection; Temporary workaround: restart engine or wait for computer reset; Can occur on cold or hot engine, rain, summer or winter
Repairs/costs cited: Dealer quoted up to $3,000 for clutch actuator, clutch motor, clutch pressure plate, and clutch plate replacement. Shift lever assembly replacement performed at ~8,400 miles; same problem reoccurred within 500 miles. Some dealers performed software updates ($200+ out of warranty).
Recalls/TSBs owners mention: Smart initially offered software fix for Reverse issue; later replaced 2008 transmissions with 2009 models under warranty in some cases. 2009 model year reportedly does not have the same problem. No factory recall issued despite widespread complaints.
Loss of all gears while driving; transmission goes to Neutral and stalls
While driving at normal or highway speeds, car suddenly loses all gears, display goes blank or shows Neutral, and engine shuts off. Car becomes a dead weight in traffic with no power steering or brakes assist. Typically requires waiting 10–90 minutes or several restart cycles before car regains ability to shift. Occurs most often during speed changes, highway on/off ramps, lane changes, or hot-weather driving.
When: Reported across ownership (13,000 to 56,000 miles); one incident after ~1 hour highway driving in heat.
Symptoms owners cite: Sudden loss of all gears while driving; Display screen goes blank; no dash indication; Engine shuts off or runs but will not shift; Only Neutral shown on dash, continuous flashing; Brakes and power steering lost due to engine shutdown; Vehicle coasts to stop; potential for rear-end collision; May restart but stuck in Neutral only, cannot select any gear
Repairs/costs cited: One owner spent $200+ for dealer software update out of warranty; rented replacement car for $300. No other repair costs specified in narratives for this failure mode.
Recalls/TSBs owners mention: Software update offered by dealers. Owners report finding workarounds on Smart Car forums, including computer reset procedure. No recall issued.
Shift lever release button becomes resistive, fails to actuate
Shift lever release button (used to select gears) begins to stick or becomes difficult to press, then fails to actuate altogether. Typically occurs early in vehicle life.
When: First failure reported at approximately 8,400 miles.
Symptoms owners cite: Release button becomes resistive in operation; Button eventually fails to actuate; Inability to select gears
Repairs/costs cited: Dealer replaced entire shift lever assembly; problem recurred within 500 miles of repair.
Shifter stuck in Park; unable to shift to any gear
Gearshift lever becomes mechanically stuck or frozen in Park position, preventing selection of Neutral, Drive, or Reverse. Renders vehicle inoperable.
Symptoms owners cite: Shifter stuck in Park; Cannot move shifter to select Neutral, Drive, or Reverse; Shifter sticks occasionally and is difficult to move
Gear selector display misalignment; blank or intermittent dash readout
Dash display for gear position goes blank, shows wrong gear, or flashes Neutral unpredictably even when shifter is in correct position. Display may jump between N, D, or blank.
When: Reported intermittently, sometimes multiple times per week.
Symptoms owners cite: Dash display goes blank when shifting; Display shows Neutral when shifter is in Drive or Reverse; Display jumps between N, D, and blank without shifter movement; Beeping noise from dash accompanies display malfunction; Display inconsistent with actual shifter position
Recalls/TSBs owners mention: Dealers stated problem is software-related. Software updates performed by dealerships at owner cost ($200+).
Ignition key too easily turned off while driving
Ignition key, located on center console next to gear shift, can be accidentally bumped and turned off while driving due to sensitive positioning and light actuation force.
When: Occurred at least twice during owner's driving pattern.
Symptoms owners cite: Key turns off unexpectedly during driving; All lights go out; Engine cuts off with no warning; No instrument cluster or dash lights function
Synthesized from 30 NHTSA owner complaints — unverified consumer allegations, summarized for patterns. The verbatim filings appear below.
What owners are reporting 9 most recent
Tl* the contact owns a 2008 smart fortwo. After the vehicle was started and shifted into reverse, it failed to respond. The vehicle was taken to Mercedes-benz of orlando (810 orlando ave, maitland, fl 32751, (407) 680-0784) to be diagnosed, but the mechanic was unable to duplicate the failure. The vehicle was not repaired. The failure occurred at least four times previously. The manufacturer was…
The failing part is in the automatic transmission shift lever. The shift lever release button begins to get resistive in it's operation and then fails to actuate all together. In my case this resulted in the dealer service department having to replace the entire shift lever assembly. The failure occurred at approximately 8400 miles. It has been about 500 miles since the repair and I can feel the…
My car's shifter is stuck in park. I cannot shift to n (neutral), d (drive), or r (reverse). This effectively renders the car inoperable. *tr
Know issue with transmission. Will not go into reverse half the time. Making it dangerous if needed quickly. Parallel parking on a busy street, the car would not go into reverse, holding up traffic for a very long time. Having to push it into the spot! Mercedes says it is a software problem. But that should be a recall because that is their problem. Many people have had the same issue.…
The 2008 smart car, has been consistently, shifting into neutral, while driving, usually, when entering, or exiting a highway, or at an intersection (speed changes). The car shifts into neutral, and then usually shuts down, causing the vehicle to be rear ended, from unsuspecting drivers behind this vehicle..the problem started when the car, would not shift into reverse, while parked..smart…
The 2008 smart car, has been consistently, shifting into neutral, while driving, usually, when entering, or exiting a highway, or at an intersection (speed changes). The car shifts into neutral, and then usually shuts down, causing the vehicle to be rear ended, from unsuspecting drivers behind this vehicle..the problem started when the car, would not shift into reverse, while parked..smart…
The cars transmission will not switch to reverse intermittently its an electrical things
Failure to shift out of park into reverse. Gearshift moves but gear display goes blank and chime sounds. Sometimes it will go into drive. It may be a solenoid problem. Very frustrating and it seems to be getting worse over time. I now have 38,000 miles on the car. This issue needs to be looked into. I expect better out of damlier benz. *tr
While driving rear motor caught fire. *tr
Had powertrain trouble with your 2008 Smart Fortwo?
File a complaint with NHTSA → It's free, official, and how every report above got here — owner filings are the federal safety record this page is built on.
Common questions
How serious is the powertrain problem on the 2008 Smart Fortwo?
It's a meaningful issue. 30 complaints have been filed and the failure mode causes operational problems for owners. Repairs average $2,500.
At what mileage does the powertrain typically fail?
Across the 27 complaints that reported odometer mileage, most powertrain failures cluster between 15,000 and 56,150 miles, with the median around 30,000. A quarter of owners report trouble before 15,000; a quarter make it past 56,150. Maintenance history matters more than the odometer alone — this is the reported failure window, not a guarantee.
What does it cost to fix?
Independent shops typically charge around $2,500 for powertrain repairs on this vehicle. Dealer pricing tends to run 20-40% higher. The exact figure depends on the specific failure mode, parts availability, and your local labor rates. If you're outside factory warranty, an extended service contract often covers this category.
Are there any recalls related to powertrain?
No active recalls currently cover powertrain issues on this vehicle. The complaints filed represent owner-reported failures that haven't risen to the level of a manufacturer-issued recall — but they're still worth knowing about before you buy or budget for repairs.
Related
Complaint and recall data sourced from the National Highway Traffic Safety Administration (NHTSA)
public records database. Verify the raw federal record at
nhtsa.gov/vehicle/2008/Smart/Fortwo.
Severity ratings are derived from reported crashes, fires, injuries, and fatalities. Repair cost estimates are
independent-shop national averages and may differ in your area. Some links on this page are affiliate links.