Of course, Larry was referring to Swatch!
Here are few quick facts about Smart from Wiki:
The idea behind the car was to create a vehicle easy to park and short enough to allow "nose-in" parking. Its length of 250 centimeters would equal the width of a regular parking slot, allowing two or three Smarts to park in the same space as one normal car. (in most European cities it makes a lot of sense, trust me if you have not been)
The project, started by Swiss watch manufacturer Swatch, was nicknamed the "Swatchmobile". The name Smart is an acronym for Swatch Mercedes ART.[1] Intended to use innovative features (such as a hybrid engine) and be affordable for young people, the Smart had similar design objective to the Citroën 2CV of the 1940s. (for sure it's not affordable for young people :-x at least not in Europe)
Swatch CEO Nicolas Hayek sought an established car maker to produce his Swatch car. After General Motors reviewed and rejected the project as potentially unprofitable, Hayek found a partner in Volkswagen. Due to VW's own financial weakness at the time, plans never reached a final stage so Swatch teamed up with Daimler-Benz. The purpose-built factory complex Smartville in Hambach, France, was established in 1994 as a joint-venture of Daimler-Benz and Swatch.