Why it matters

Japanese car manufacturers – especially Toyota, Nissan and Honda – have long been competing for the entry-level customer. Many consumers want good, quality products for not a lot of cash. As the Corolla, Sentra and Civic have climbed out of the budget realm, there’s room for a new generation of small cars.

Any product contributes to the reputation of its manufacturer, so automakers are hesitant to sell vehicles that reveal “budget” engineering. Everyone wants class, refinement and key features, no matter how much they’re spending. Honda’s new 2007 Fit not only makes the grade in terms of expected quality, but also redefines the way in which small hatchbacks transport cargo and passengers.