If by smart you mean in typical Japanese fashion they copied someone else's idea.
Saab introduced VCR technology back in 2000 and won engineering awards for it that year and 2001. Saab's was also a 1.6 liter engine but super charged. GM cancelled the project due to cost.
Actually, by smart I think he means that in typical Japanese fashion, they took the idea that someone else couldn't produce and are going to do it better, cheaper and more reliable.