As in Lupo/Polo sized VWs or the Yaris by Toyota etc.
Not everybody needs a big F150 or SUV, and some are not just going to get a hybrid car, nor deal with (bio)diesel as an alternative.
However, there seems to be a market for fuel economy provided by a smaller footprint 'Citi' or Metro-Car, one depending less on batteries and more on a smaller chassis/motor to squeeze the MPG a bit more.
Now, of course, here in the US the masses are sheep led about by image makers and buy what they are told to buy; hence the stereotypical single occupant SUV driver, etc.
And of course there is the 'I'm prosperous enough to waste money on a low MPG vehicle....' type bling/bling approach, not to mention the "US buyers don't want Hatchbacks..." to contend with. (Nobody asked _me_ about that btw.)
Maybe we need Xzibit to pimp a set of seven small cars for somebody; one for each day of the week- and then some "They're small, but two!" type marketing to encourage folks to get into a different sensibility.
Hmmm, how to be both Cool & Frugal....
TBerk