“Unintended” consequences feels charitable.
Regulations like this don’t come from nowhere. There is no “clean room” process for working this stuff out.
They’re created by government officials based on feedback from industry specialists. The loop is almost completely closed.
The article already mentions the Subaru Sambar. That vehicle is also a result of government regulation.
But Japan’s regulations created a market for very small and cheap cars with real innovations in efficiency, while the regulations in the US resulted in very big and expensive cars, with innovations in passenger comfort.
So what’s the difference?