Transportation is not only cars. There are also trucks and other vehicles. But everybody doesn't not need to buy a new diesel Golf. They could just drive less or use that smaller car they maybe already own. But they don't bother to do that yet.

And do you think the Europeans would manage the Peak Oil better with all their effective diesel cars? They will just drive less. Increasing fuel efficiency will help you in the beginning, with oil supply down 10 -20%, but  it costs a lot and changing all cars will take much energy, so the net effect is not so great. But don't worry. Oil crisis ususally bring recession, recession brings unemployment, unemployed stop commuting and use less gas. Statistics show that even a mild recession cuts fuel usage effectively. The rest will buy smaller cars because many can't afford bigger - if they have money for a new car. This is the easy part. The difficult part is coping with the recession.

If they manage more easily, it would probably have as much to do with geography and infrastructure that was laid down long ago.

Just one aspect: As far as I can tell, you can still get around many cities and towns by walking.  In my town half of our workforce lives more than ten miles away (guessing) and 95% of the town was laid out and built after the automobile took over, so everything is sprawled all over.  No such thing as a neighborhood grocery or other services, and while we could probably push zoning changes through in ten years or so, if the economy tanks it would be virtually pointless as there won't be anybody left but Wal-Mart and the like anyway.

We are 100 miles from a big town (over 200,000 people) in any direction, our groceries, mail, etc. all depend on trucking to get here (no rail except for bulk goods like rock and chemicals, passenger service ended years ago) and it might actually be easier and/or more economical for people to move to the bigger towns than it would be to secure services here.  

That's the pessimist in me talking, btw.

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