Thursday, May 22, 2008

Honda Plans Fit Hybrid


Fuel economy is the best bait for car buyers during hard times. The less dependent a car is from regular carbon emitting fuels, the more appealing they become.

Honda is currently toying with the possibility of a Honda Fit Hybrid. The Fit, a sub-compact car with a 27 MPG city/ 34 MPG highway gas mileage, is already one of the most economical cars in the U.S. A hybrid version of the Fit can only mean even better fuel economy.

There is, however, a dilemma regarding hybrid vehicles. It is the fact that hybrids are more expensive to produce. This means that hybrid cars need to have a higher base price for the auto maker to have profit.

Despite the relative lack of interior space compared to standard sized sedans, sub compacts are successful because they have a low base price to go along with their fuel economy. The current Honda Fit has a price range of $13,950 - $16,070 depending on the trim.

Hybrids on the other hand have base prices over $22,000. If a sub-compact was priced as much as a regular hybrid, it will not sell at all. Car buyers wouldn't spend that much money for a car with limited interior space.

If the Fit Hybrid is to be successful, Honda President Takeo Fukui said that the base price should be at most $2000 more than the standard Fit. Any more than that and car buyers might shy away from the Fit Hybrid.

If everything goes according to plan, the Fit Hybrid should be ready by 2015, coinciding with the Honda Fit's makeover.

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