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Progressive X-prize is offering $10 million to anyone that can demonstrate a safe automobile which is capable of being manufactured in quantities over 10,000 units per year and gets over 100 mpg in real-world conditions. It also has to be capable of emitting less than 200 g/mi of CO2 and no more other Green House gases than other automobiles, meet U.S. and other country safety standards, and must be desirable, something people would buy.
Volkswagen is well-ahead of the game, they introduced the One Liter six years ago, the 660 pound carbon-fiber prototype powered by a 8.5 horsepower diesel, is capable of 235 mpg (U.S. gallon). Volkswagen estimated carbon fiber would get less expensive over time, predicting it would be feasible by 2012. They're not waiting for the X-prize, they expect to make 1000 of them for sale in 2010, with a more powerful turbo-diesel and hybrid technology, selling for between $32,000 and $49,000.
Meet the future of commuter transportation: