According to Carlos Ghosn, CEO of Nissan, 15% of world's car use is for urban transportation such as commuting or shopping. Nissan considers this as potential market for EV and compact car. It is targeting to introduce EV in US in 2010.
It also dubbes Cube (photo), a mini multi-purposed vehicle (MPV), a global strategic car for Nissan and will start marketing it worldwise in the near future. It will get 37 MPG. Nissan expects high gas price will help boost the needs for compact/small cars.
To me, it seems very straightforward. Dragging less steel requires less energy, therefore smaller car is better.
Cars, go small!
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