2007 Honda Fit

You May Have noticed the following two trends in the auto biz: (1) Honda is on a serious roll, winning MT's Car of the Year award with the all-new, eighth-generation Civic as well as our Truck of The Year trophy with its first pickup, the Ridgeline; and (2) The subcompact segment--you know, that small-car class in which Honda used to dominate with the now-compact, upscale Civic--is experiencing a resurgence, thanks to such newcomers as the Toyota Yaris and Nissan Versa along with the current crop that includes the Chevrolet Aveo, Hyundai Accent, Kia Rio, and Scion's fraternal twins, the xA and xB. A decade ago, experts were writing off this segment, what with low gas prices offsetting the notion of high fuel economy and SUVs selling like cotton candy at Disneyland. Bigger was certainly better and smaller hardly mattered.

Now, though, with gas prices hovering around $3 a gallon and large sport/utilities garnering more scowls than Jacko at a PTA meeting, bigger is just bigger and smaller matters, uh, big time. Indeed, many of those experts are now singing a different tune, with some predicting the subcompact segment will grow more than 58 percent by 2010. So where does Honda fit into this boom?

Honda, never an automaker to ice a hot streak, will seemingly fit in just fine. It's getting back into the subcompact game with the all-new Fit, a wedgy five-door that, for around $14,000, slots below the Civic and represents a new entry point into the lineup. The Fit is a world car, which means Honda's already been selling it in Europe, South America, and Japan, and to date, has sold over one million worldwide. In America, Honda hopes to sell 50,000 per year.

Based on a day of driving Malibu's hilly coastline, we're inclined to believe Honda may be selling itself a bit short with that sales projection. The Fit, available in standard and Sport trims, brings lofty levels of refinement and utility to the segment. Like all Hondas, it comes better equipped than Heidi Klum, with ABS, six airbags, a 160-watt CD audio system, A/C, five cupholders, and power windows, mirrors, and door locks. The higher-rent Sport adds 15-inch alloys, a rear spoiler, foglights, a leather-wrapped steering wheel, and a 200-watt stereo.