Saw on CNN tonight that Honda is coming out with a car called the FIT sometime next year. It is suppose to get 85 MPG.
I don't know where you got "85 MPG" from, but the Fit is kind of like a mini-minivan that should get up to 40-45 MPG on the highway. Transmission options should be either a five-speed manual or CVT automatic.
Honda Fit is a compact 5-door sedan. http://automobiles.honda.com/fit/index.aspx The "85 MPG" number is came from Japanese 10-15 mode test and close to Prius or Insight. http://www.greencarcongress.com/2006/02/honda_planning_.html Ken@Japan
According to the article, the Fit is supposed to be priced only $2000 above the gas-only model. Honda's trying to get the hybrid prices as closer to the gas prices by making the engines smaller...