This prototype CityCar from MIT Media Lab might actually hit the road in 2013. However, for know, it is half its size of a smart car and just an eye candy for people to understand their folding concept.
According to MIT (in this video), they would actually visualize people in future renting this car to travel in the city area and parking it in another part of the city once they are done.
Since they are foldable, it should actually take up lesser parking space. Right now, I just wish to know how fast or sturdy is this CityCar. Watch this video on how it works.