also vw has a concept, that will spend 1 liter for 100 km.
I think it's a 1.0l diesel engines combined with electric motors.
Seats two, it's in testing phase.
you are likely thinking of the XL1...yes, very nice and is expected to go into production soon (maybe a year or so)?...if they can mass produce the cars, it would help bring down the cost...having the model here (and being practical) would likely require a few minor tweaks (like opening the rear wheel wells), but still a viable option provided it is affordable.
http://en.wikipedia.org/wiki/Volkswagen_XL1#XL1_.282011.29