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There's a whole slew of small, practical, inexpensive, fuel efficient cars coming out of Japan (e.g. Toyota's Yaris, Nissan's Versa, Kia's got one as well [well, that's Korea]). Which is of course good news for any academics out there because, with the exception of Lubos, we're all radical, left-wing, string-bashing tree huggers. Oh yeah, and we're cheap too.
Anyway, the Honda Fit just came out and is getting rave reviews, but the gossip is that a hybrid version will come out next year for less than $20k (US). Here's a picture from http://thehollywoodextra.blogspot.com. Not sure how legit the picture is. For more on the fit: http://www.fitfreak.net/.
Oh yeah, and be sure to read about how a Hummer is better for the world than a hybrid!
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