All this happened, more or less.

The MIT team has transformed the lowly wheel into a sophisticated robotic drive system that will power the City Car. Embedded in each of its four wheels will be an electric motor, steering and braking mechanisms, suspension, and digital controls, all integrated into sealed units that can be snapped on and off.

"We're eliminating the internal combustion engine," said Media Lab research assistant Ryan Chin , studio coordinator for City Cars. He said the four electric motors will enable a more efficient use of power by also dispensing with the transmission and driveline. "We're removing as much hardware from the car as possible."

In its place will be software that sets passenger preferences, changes the color of the cabin, controls the dashboard look and feel, and even directs drivers to parking spaces. "We think of the car as a big mobile computer with wheels on it," Chin said. "This car should have a lot of computational power. It should know where the potholes are." http://www.boston.com/news/education/higher/articles/2007/02/18/18future/