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All fortwos use an OBDII interface to create a link between the car's systems and the user. (Note, if you have an old fortwo, this statement is only true in part). You can buy generic code readers online with varying costs for various functionality and look similar to this:

These units will read information from the engine control unit but the ultimate tool (that smart dealers use) is a STAR machine which can read all smart-specific codes as well. However, these are far out of the price range of individual owners. With generic code readers you can do basic functions such as reading fault codes and clearing them. However, to fix faults with the airbag system and ESP controller you will need access to a STAR.

The OBD port is located below the dash, adjacent to the 12V interior socket. The picture below shows location on an RHD car. For an LHD car, the port is on the other side of the socket.

There is a cover over the port which unclips from the top and swings down.

Plug in your code reader as follows and read out the codes from the car.

For information, the wiring of the OBD socket and functionality of the pins are detailed below:

If you wanted to wire in anything directly to the port then the wiring colours into the back of the port are as follows:

FromToColour
Pin 1 - -
Pin 2 - -
Pin 3 - -
Pin 4 Ground Brown
Pin 5 Ground Brown
Pin 6 CAN Bus (High) Green / White
Pin 7 - -
Pin 8 SAM Black / Yellow (Switched Live)
Pin 9 - -
Pin 10 - -
Pin 11 - -
Pin 12 - -
Pin 13 - -
Pin 14 CAN Bus (Low) Green
Pin 15 - -
Pin 16 SAM Red / White (Permanent Live)

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