1st sighting:
Driving north near Pojaque, I saw a smart car going the other direction with a Yakima hitch mount rack with a dual suspension MTB on the back. It was cattywumpus on the rack with the rear wheel above the roofline of the car.
2nd sighting:
not a week later

Framebuilder and tiny car aficionado Curtis Retrotech Giantman Inglis himself seems to have this set up, seen on his flickr stream click for source.
3rd sighting:
A day after number 2:

This guy in my neighborhood has a homemade rack added to the factory hitch on his Smartcar. Factory hitch! Who wouldathunkit. Note the sweet lustron home in the background.
It is now officially a thing. All the rage. I am going to get a smartcar and festoon it with biketites screwed directly into the plasticky smartcar body and mount as many bikes as I can simultaneously so I can join the fun.
Also, Smartcar v. Bakfiets
update! 4/30/10
From the comments, we received:
This excellent visualization of smartcar bike festoonage:

from reader JRA
And then this most excellent conceptually troubling folding bike on a smartcar:

Caught in california by andy R.
Thank you fellers! I knew it was a thing.











