It looks to me as if the Kaiser and his car have been "photo-shopped" into the scene. They're a little out of scale with the citizen in the foreground.
Maybe the painting of some parts of the picture, like the dark paint on that guy, exacerbates the impression? Odds are it was just a photograph. But I suppose you never know. The Kaiser doesn't exactly look like he's under those linden trees, either.
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We've been faking photographs ever since photography was first invented.