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Honda is set to release the fourth-generation of its City subcompact and these newest spy shots show that development is well underway. The previous generation had been based on the Honda Jazz, known in the U.S. as the Fit, but the new model moves away from that platform and grows slightly larger in the process. Expect to see either a 1.3- or 1.5-liter i-VTEC SOHC engine underhood, along with either a standard manual tranny or a CVT automatic with seven preset ratios controlled through steering wheel-mounted paddles. Although Honda has no plans -- as far as we know -- to bring the City to the States, the Fit model has managed to post a huge 73% increase in sales this year. Considering how hot fuel-sipping little cars are these days in the U.S. market, Honda could certainly do worse than to offer this attractive new subcompact car in the States.

[Source: paultan.org]