Divided City was a racing / vehicle combat game slated for release on the Xbox 360 and Playstation 3, developed by Pseudo Interactive (creators of Cel Damage and Full Auto). Not too much information is known about it, except for the fact that it was a racing/combat hybrid similar to the Full Auto series, but set in an apocalyptic setting.
A playable demo was created, but was never made public. After one too many cancelled projects, Pseudo Interactive went under in April 2008, leading to the cancellation of Divided City as well. 
Former Pseudo employees formed Finish Line Games in 2013, but it is unknown if this or other canned projects of theirs will be revived, or if the playable demo will ever be posted online.