It reminds me of a bubble car, with it's canopy and 1+1 seating.
http://gas2.org/2008/05/07/vw-confirms-1l-concept-will-become-reality-in-2010/
I'm not sure I like the styling of the prototype (ugly rear end and boring front end), but I'll bet the thing is fun to drive. That low slung, and light of a body, it's probably akin to driving a go-cart for handling.