Making the World’s Best Small Car

It was October 1997 when Yoshiyuki Matsumoto, who had worked in chassis design and served as acting Large Project Leader (LPL) for the first-generation CR-V (1995), was assigned to mass-production development (D-development) of the Global Small platform, which had completed basic research (R-research). When he heard the word “small,” he wondered if the development would only be about cost reduction as a product package.
The file handed to Matsumoto a short time later contained a record of meetings held in the preliminary stages of model planning, in which the importance of small cars in the environmental age was summarized with a strong sense of urgency.
The Global Small platform, based on the concept of “World Basic,” was planned as a forerunner to the environmental age, and was developed in R-research as the cornerstone of the automaker’s social responsibility. Matsumoto was intensely moved:
“We would aim to be the world’s best. I had the strong desire to realize functionality and value that would surpass all the small cars in the world, or in other words, provide ‘one and only value,’ by making full use of Honda’s latest technologies. Honda would also be No.1 again in the small car segment, which it had always been good at.” (Matsumoto)

A Harsh Reality

Once he commenced work as LPL, Matsumoto flew to Europe, the home of small cars, as soon as the advance development team was established. He visited five to six countries, including the U.K., France, and Germany, learning how people used small cars and what they wanted from them, and witnessed many surprising events.
Three people riding in the back seat of a small car was rare in Japan, but it was common in Italy for youngsters going out to dinner. On a weekend in Germany, Matsumoto witnessed several shopping carts-worth of goods filled to the brim, and in France, saw bookcases and sofas loaded into small cars as a matter of course. In terms of driving performance, old small cars driven by the elderly were faster on Britain’s winding roads. The demands for cargo space and driving performance were well beyond the team’s expectations.
“We realized early on that we could not simply imitate European cars in order to stand out in a tough market. We had to move away from the idea of trying to catch up with and surpass European cars, and instead focus on what only Japan’s Honda could do. Even if it was out of step with the values of the European people, we believed this would give birth to a unique value that would be accepted around the world.” (Matsumoto)

The Persuasiveness of the Actual Product

Dive-down mechanism

Meanwhile, Product Planning came up with an interesting proposal. The idea was to fold down the rear seats to create a large luggage space. At the time, it was not unusual for small cars to have rear seats that could be stowed away, but the operation was complicated, and used up floor space. This was not a very user-friendly mechanism, as it reduced cargo capacity and made loading more difficult. However, Product Planning’s proposal included an idea to move the fuel tank, from its usual position under the rear seat, to the space between the rear tires, allowing the rear seat to be stowed without raising the floor height. With the dive-down mechanism, by sliding the rear seats forward when folding the backrests, the backrest and cargo floor would be flush.
Based on this proposal, the interior mockup produced prior to the D-development was truly compelling. “Diving down” the rear seat created a huge floor space. Tipping up the seat would reveal enough free space height to carry tall houseplants. The ability to “create” space at will gave new value to the car’s interior.
This, however, was still a mock-up to study the interior. Even though the idea was convincing, there was no proof that it could be used in a mass-produced car. However, all present at the event had the same vision: The joy on the customer’s face. A way of life in which people could enjoy their daily lives, happy and free, without compromise just because the car was small, while enjoying the ease of use and mobility that only a small car could offer.
The actual product was more persuasive than a hundred words. Not only the Interior team, but the Engine and Chassis teams also began to wonder:
“What can we do to make this real?”

Going Beyond Conventional Wisdom

The problem was where to place the fuel tank. At that time, most cars had a spare tire under the cargo floor, and if the fuel tank was moved between the rear tires as shown in the mockup, the spare tire would have to be moved elsewhere. Also, it was not possible to make a four-wheel drive (4WD) car due to the lack of space for the rear differential gear.
Sueo Goda, acting LPL for the first Fit, said:
“I recall how Matsumoto laid the plans out on the floor, and drew all over them with his pencil.” (Goda)
They initially considered moving the spare tire to under the front seat, but there was not enough space. The more they considered the basic chassis design process, the less options they had for fuel tank placement, and 1997 ended without any solution being found.
On the first day after the new year, Matsumoto and Yasunori Oku, Project Leader (PL) of Chassis Design, resumed their study of the layout. The 1/5 scale layout, which had been repeatedly drawn and redrawn with pencil, was completely black, but there was one spot left unblemished. It was under the front seat. There was not enough space for a spare tire, but a fuel tank could fit. They drew a picture of the tank and roughly calculated its capacity, and found that it could somehow fit a 40-liter tank, the required capacity. It was 10:00 p.m. on January 6, 1998, when they decided to give it a try.
The reaction within the company was severe. They were confronted with a lot of data, including costs, and were repeatedly persuaded to reconsider. However, this was the only way to create new, innovative value. Matsumoto encouraged the team members, who were beginning to feel uneasy, by saying, “Don’t assume that it cannot be done, but think about it intending to create it.”
The biggest crisis came at the first evaluation meeting. Although they confidently explained the packaging, seat arrangements, and design, the evaluation committee’s attention was focused on fuel economy and cost. They were asked, “How can you get good fuel economy with such a big tank?” “You talk about a center tank, but how much do you think it costs?” and finally, “I’ve never seen such a terrible team.”
The team understood that fuel economy was important, but that alone was not enough to prove the excellence of their technology. The team had been striving for innovation as a product, aiming to make the world’s best car. Their desire, however, was hard to convey.
In the midst of all this, an opinion at another evaluation meeting would turn the tide. Amid the usual harsh remarks that it was impossible, the opinion that, “unless we do something so drastic to change the structure, we will not be able to compete with the rest of the world. We can’t make uniquely Honda products if we keep on focusing on cost,” silenced all at the meeting. The opinion was spoken by a senior engineer with a fuel tank background, who would have the hardest task as an evaluation committee member if the evaluation had passed.

Center tank layout structure

Under-floor structure of center tank layout with fuel tank located under the front seat

Seat arrangement realized by center tank layout

Taking on the Challenge to Innovate

For the exterior design, Wako R&D (HGW) and Honda R&D Europe (HRE) exchanged ideas, but neither was a clear winner, and a number of competition-style review meetings were held. In the end, the HGW proposal was chosen for its Japanese originality. The designers believed that even if it was a global strategic model, it would be accepted if it was designed to make the statement “This is Japan, This is Honda.”
Realizing the design was helped by the fact that the basic framework and engine were all newly developed. With the chassis, the rear suspension was an H-shaped torsion beam, with separate dampers and springs, to achieve a low, flat cargo area while keeping the spare tire in the same position as before. The new compact i-DSI^*7 engine and arched side frames that absorb frontal collision impact within a short stroke enabled the ultra-short nosed, one-motion flow form exterior to be achieved. As design and engineering progressed simultaneously, technology was tailored to design, design was backed by technology, and the refined styling was perfected. It was a design that was the result of the team’s collective efforts, and it was a new small car that only Honda, of Japan, could have created.
No effort was spared in the pursuit of dynamic performance. In the chassis area, the goal was to “achieve dynamic performance that exceeds European small cars,” and efforts were made to develop a chassis that maximized the advantages of the center tank layout. There were concerns about the impact on weight distribution by moving the fuel tank forward, but thanks to the newly developed lightweight engine and other factors, a front-rear weight distribution of 6:4, which is almost ideal for a front-wheel drive (FWD) vehicle, was achieved. In this way, all the pieces that made up the car fell into place.

Arched side frames and compact i-DSI engine

Fit: The Revolutionary Small Car

Although the basic specifications were finalized, the road to mass production was difficult. The initial plan was to focus on a 3-door model, mainly targeting Europe, but market trends led to the integration of a 5-door model, and the team had to rapidly respond.
The fuel economy target was raised. The engine team initially set the target at around 22.0 km/L, given that the 1.3 L-class 6th generation Civic (EL) and Logo (B and L) achieved 18.4 km/L and 19.8 km/L respectively, but in light of market and CAFE trends, the target was raised to reach 23.0 km/L^*8 at launch. For a conventional gasoline car at the time, this fuel economy would have a significant impact on the market.
The cost, which was endlessly discussed at the evaluation meetings, could be realized with the cooperation of the suppliers. The first presentation to around 100 suppliers was followed by a request for their cooperation, but none of them would agree as it was a new model with no guarantee of sales. Finally, after the third presentation, the team backed into a corner told the suppliers, “Today is different,” and unveiled a full-scale mockup. That was the moment when the mood changed to one of optimism, and offers to cooperate began to arrive.
In the pursuit of an ideal, the developer experiences heightened awareness, and notices things that were overlooked. If their intuition is right, people will naturally gather, and if it is a dream that attracts, it will become a reality through the combined efforts of the entire development team, regardless of any difficulties they may face. The completed Fit was truly a revolutionary small car, with a vast interior space and functionality that defied conventional wisdom, as well as a unique design and excellent fuel economy.
Launched in Japan in June 2001, sales of the Fit expanded to Europe, Asia Pacific, South America, China, and North America, and by June 2007, six years later, it had become a blockbuster model with cumulative global sales of 2 million units^*9. In Japan alone, Honda achieved cumulative sales of 1 million units in 6 years and 6 months (on the 78th month) after its launch^*10, setting a record (at the time) as the fastest Honda vehicle to reach the 1 million unit milestone.

Technology, For the People

The center tank layout, which brought overwhelming space efficiency to the first-generation Fit, was applied not only in successive Fit generations, but also in the Mobilio^*11, a 7-seat compact minivan, and global SUVs, and became the source of much popularity.
In particular, the N-BOX k-car, launched in December 2011, became a best-selling model, ranking No. 1 in new K-car sales for eight consecutive years from 2015 to 2022. The cumulative sales volume of 1 million units was achieved in 5 years (60 months)^*12 and 2 million units in 9 years and 5 months (114 months)^*13, even breaking the Fit’s sales record.
Launched in December 2013, the Vezel was the No.1 selling SUV in Japan^*14 for three consecutive years from 2014 through 2016, and rapidly grew into a major model for Honda, selling a cumulative 3.84 million units^*15 worldwide as of November 2020.
The technology that went beyond conventional wisdom and overcame challenges, continued to evolve strongly, bringing joy to many customers.
The reason that the center tank layout became a reality is very simple. To imagine it, or not. To act upon it, or not. It is simple, but it is the fundamental quality required of an engineer.
Most engineers can come up with an idea. The real test, however, is whether they can defend the value they initially planned for the customer when faced with a challenge, and choose to execute it despite the difficulties. There are many reasons why not to execute the original plan. But, if there is value for the customer, difficulties must be overcome with the power of technology.
Oku, who worked on the center tank layout at the frontlines of first-generation Fit development, said, “Although the center tank layout was groundbreaking, we need to remember that the technology to position the fuel tank under the front seat was not one supported by the customer. The starting point was the idea of providing customers with unprecedented small car value. And one of the means to achieve this was the center tank layout.”
Matsumoto, who was LPL for the first-generation Fit, recalled, “As a result of our reckless and high aspirations, as well as our consistent consideration of value for our customers and the world, we were able to bring about innovations that went beyond conventional wisdom. I believe that we were able to keep the history of Honda’s challenging spirit alive.”

Launched in Japan in 2001, Fit sold 2 million units worldwide in 2007.

Mobilio

N-BOX

Vezel

Honda’s M/M Philosophy