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As great as the Smart fortwo may be for maximizing the space available, parking in large cities will continue to be at a premium. Enter the City Car, imagined by students in the Smart Cities project at the Massachusetts Institute of Technology. Like many dream commuter cars, the City Car is an all-electric two-seater, but when it comes time to park, it can be stacked.

The car’s rear axle - and possibly its powertrain - are located on a subframe which protrudes from the cabin. This entire frame is hinged at the body, allowing it to fold underneath the car, shrinking the wheelbase. Other City Cars can then be parked beneath it, essentially allowing a series of these vehicles to be “stacked” for parking.
Of course, that implies the car would best be used for on a rental-share basis - which, conveniently, is exactly what the folks at MIT envision it as being. We think it could hold some promise for the most congested city, or simply locales where people could get away with using cars for short in-city trips, but have to wonder how well the supposed 360-degree steering works outside of the parking garage.
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So the car on the end (1st off the rank) is taken by the next driver and so on... so that leaves spaces at the front continually. Do you refill these spaces or leave them? That would mean the cars in the middle may never be used, or if you rotate the cars you always end up with unused spaces at the front?

Now that the parking space problem is solved they have to take on the bigger problem: what to do with the 99,9 % of people who don't want to drive a car like this...