Report: Honda planning low-cost hybrid

Honda plans to sell an inexpensive hybrid version of its Fit compact car starting in 2007, according to a Japanese newspaper report. The car would reportedly sell for $11,795 -- compared to just over $10,000 for the gasoline version. While still a significant upgrade -- especially for that price segment -- the Hybrid Fit would put gas-electric technology in the hands of a whole new demographic. Honda's current hybrid models -- the Accord and Civic -- sell for about $2,500 above their gasoline counterparts. Many of Toyotas hybrids come at a $4,000 premium. In Janaury, the 2007 Honda Fit made its official U.S. debut.