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radpanda | 7 months ago

As I understand it there was actually healthy demand for the Honda Fit and it sold profitably, but US-bound Fits were made in the same Mexico factory that made the more profitable Honda HR-V. The HR-V was successful enough that it displaced some Fit production and there were waiting lists at Honda dealers to get a Fit. Eventually the HR-V became popular enough that the Celaya factory switched to 100% HR-V production.

It wasn’t that Honda couldn’t sell Fits to Americans at a small profit, it’s that they found they could use their manufacturing capacity to sell more expensive, more profitable models to Americans instead.

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MobiusHorizons|7 months ago

The fit is an awesome car! My friend owns one and the way the rear seats fold into the floor is a sight to behold. Immensely practical vehicle.

alephnerd|7 months ago

> US-bound Fits were made in the same Mexico factory that made the more profitable Honda HR-V

> The HR-V was successful enough that it displaced some Fit production

> it’s that they found they could use their manufacturing capacity to sell more expensive, more profitable models to Americans instead.

That by definition implies that the Fit did not have ideal PMF. You do NOT want to be managing multiple SKUs, especially if they are cannibalizing each others market.

It's also an additional point showing that if given the option or the ability, consumers would spend a couple thousand more just to get a CUV instead if a hatchback.

Edit: I forgot, no one on HN understands how basic business works. Keep the downvotes coming