I believe it's for aerodynamic, though it is pathetically short. The idea is to limit air flow underneath to minimize turbulence. Ideally the damper should cover the entire front to within a few inches, like all the race cars. I plan to install a damper across using lawn edging material. With the iMiev being so short, I just have to train myself not to park just short of the curb. The iMiev underpan is already actually pretty flat, but i think the lower damper still help with the aerodynamic since the rear axle is pretty low. I've added this damper to other ICE vehicles, but it's weird how it made a difference on some but not all. For example, MPG improved on Geo Metro, Corolla but not on the Gen2 Prius, Insight, nor the Odyssey Van.
Lots more info here:
http://ecomodder.com/forum/showthread.php/front-air-dam-aba-test-results-7-49-a-27167.html