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Honda Plans Econo-Hybrid for U.S. Market

February 22, 2006

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Honda Motor Co. plans to sell a hybrid version of the subcompact Fit in the U.S., suggesting a long-term commitment by the automaker to hybrid technology.

Honda predicts that the small Fit hybrid will produce better fuel economy than the Honda Insight or Toyota Prius, perhaps in the range of 85 miles per gallon.

The Fit, which is Honda's top-selling model in Japan, will be the first hybrid to carry less than a $2,000 hybrid premium.

Honda plans to bring the Fit hybrid to dealerships next year with a price of approximately $11,790, roughly $1,690 more than the gasoline-only version.

Honda executives have repeatedly warned that the company would not commit over the long term to hybrids until the cost of hybrid technology declined substantially.

Honda is developing a smaller motor and battery to reduce the hybrid's cost and weight. The Fit will combine the electric motor hybrid unit with a 1.0-liter engine.

Honda sells hybrid versions of the Accord and Civic at a premium of around $2,525. The Honda hybrid-only Insight coupe was the first gasoline-electric car to be sold in the United States.

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