With pyrotechnics that jolted onlookers, American Honda Motor Company’s Executive V.P. Dick Colliver welcomed the 2007 Honda Fit to North America. And, when the smoke cleared, Honda’s smallest vehicle garnered applause from automotive writers from around the globe as the new models skittled out of the haze and into the limelight. The new Fit hatchback might be tiny on the outside, but it has a deceptively large interior with unique “magic” seats for five. What makes the seats magic? The seat bottoms fold up, the seat backs fold flat, and the rear seat has a 60/40-split fold to create nearly as much cargo space as the much larger Honda Element.

Not only is the 2007 Honda Fit made for carrying people and cargo, it’s engineered for fun and frugality. A 109-horsepower engine is mated to either a five-speed manual or a first-in-class five-speed automatic transmission. Fuel economy is rated at 33 mpg city and 38 highway. And don’t think driving a Honda Fit relegates you to a penalty box. This premium entry-level vehicle comes with six airbags, and the available Sport model includes paddle shifters with the automatic transmission, and a 160-watt six-speaker audio system. Fit owners will also have available a wide variety of accessories, including the segment-exclusive Honda Apple iPOD Music Link.