The world isn't like this at all. Seeing as mist pollution is local.
Which is why pollution in city centres is far higher than outside. As it gets caught between the building. so that statement is utter rubbish. If what you said is true, then pollution would be very uniform, which it isn't in the slightest. As from the London thread a 2014 diesel has to meet the same NOx emissions as a 2006 petrol.
EU is taking the UK to court as we have not met air pollution targets in many cities. Not even close to meeting them. so expect far more schemes to come in, to try and meet them.
Yes of course there is a concentred smog in cities, but CO2 is
not photochemical smog (dubbed the LA smog in California - In a valley so doesn't easily get blown away). The world is one big 'room' - It does not matter where the CO2/NOx is emitted from in the long run. Remember the industrial revolution, which has caused the damage is only just over 100 years old, which in the lifetime of the planet is merely a blink of an eye.
If we made all cars in London electric, it would certainly help the air qualtity in London, but all you are doing is moving the 'tailpipe' (coal power plant) away from the city, so whilst the city pollution improves, the overall picture pretty much stays the same.
I should get a Landrover V8 with a 4 litre engine that pumps all the exhaust fumes into a gas tank, then empty it in the countryside, because it makes the city clean and all

.
I worked as an environmental manufacturing researcher for a year (very boring. Do not recommend it).
The environment is like politics. Everyone has an opinion. Most are wrong.
Another spanner in the works is at what point does a new 'eco' car break even environmentally against an old one.
Say you have a 2 litre 1998 Mondeo that works just fine, you scrap it, dig up material for a new car, process it, assemble it....then suddenly you have an economical car - If you focus on the 'use' phase on the lifecycle definitely, but is it
really any better?