A new type of SMC material (Flex-SMC) developed for automotive exterior body panels has been investigated. Flex-SMC contains hollow glass micro-spheres and thermoplastic toughening additives. A conventional SMC (Std-SMC) was used as a reference material. Materials were tested in monotonic tension and compression. Stiffness degradation with strain as well as fracture toughness was determined. In situ SEM was used to study failure mechanisms. Flex-SMC has a density almost 20% lower than Std-SMC and has higher impact resistance. The damage threshold strain of the Flex-SMCs is higher than for Std-SMC. Flex-SMCs have more than twice the fracture toughness of Std-SMC. The major reason identified is that Flex-SMCs shows extensive fibre pullout. © 2003 Elsevier Ltd. All rights reserved.