There were a couple, one of which was mine (screenshot posted.)
First off, the 2600 can't display detailed graphics like that. Look at the screenshot for a better example of what the game may actually look like.
Also, on the 2600, the smoke probably couldn't be more than just flickering blocks if you want them to fill the screen, and even that would require some sort of RAM cart, as the RAM requirements of the smoke alone, never minding the rest of the game, would exceed the 2600's available RAM.
EDIT: The cars look funny in the shot, probably due to Stella's phosphor effect - they bodies actually align with the wheels when you play the game.
What about if you reverse Pac Man, and lay down a fading trail of smoke colored bricks? I know it's cheap, but back then, they didn't have internet message boards to share notes. You hotdogged the game in order to ship it in time and keep your job, then you trusted in the imagination of your audience to carry the concept through, with an able assist from the cover art.
It makes a worse game, but it's more authentic to the times.
Edit: Other possibility would be to design an arcade game with steering wheel based on the 6502 or the better known (by programmers) 68k chip.
Atari was using both at the time, and judging from the amount of time the arcade division put into race game crashes (this crunch appears in another game) and chases with the law while smuggling moonshine, they would have loved to have had the license.
Your design would be no trouble.
Another edit: Only handicap is both were in b/w. The only color in arcade games came from screen overlays, until Namco released Galaxian in 1979.
i'd totally be down for that... those trees could pass for burnout smoke.