Why They Drive Tiny Cars In Europe

... because when you live in a medieval town, you share roads made for horses with pedestrians, outdoor cafes, kiosks and what-have-you. The taxi drivers have small to medium sized cars and they're at a disadvantage, particularly when it comes to parking. It has nothing to do with being "green" or saving money, it has everything to do with simple utility.

Here's a typical street scene from Florence.