It's good for Honda to discontinue the Honda Fit for business sales. But, it's bad because Honda Fits have a good reputation for reliability for small cars. 

People do not buy subcompact cars in the US. It is a decision based on economy by Honda. Bad for the customers and good for the company.

Most people these days want SUVs or small crossovers. For those who want a compact car from Honda, they go with the Civic. It’s more comfortable, more powerful, more spacious, and an overall nicer car than the Fit. I would imagine the profit margins are also higher for the Civic and Honda sells something like 25,000 Civics a month consistently. By comparison they only sell about 5,000 Fits a month. It was a good business decision by Honda IMO. 

I'd say the new model (sold in Japan, etc.) is much better looking than the outgoing model.

Would have sold well on style alone (and rising gas prices).

But Honda has thousands upon thousands of Civics laying around unsold.  So, they probably

figured it was best to try and move them instead of idling U.S. factories.

I hate to see it go as it is an excellent small car. But we don't buy small cars here so it doesn't make sense to keep them sitting on dealer lots.

not sure if a factor, but i saw a '21 corolla hatchback on the lot yesterday and it was pretty sharp!

That sucks.  But hey, it's business.  

If a cheap car can't sell at volume, it's probably not worth it for them.

They have the HR-V, which kinda replaces the Fit.  It seems people are moving more towards SUV's and Crossovers, and the HR-V is the Fit of SUV's and Crossovers.

Honda continues to sell the Fit around the world with other badges, such as the Honda Jazz. Oil prices are cyclical. They've been low for some time (much of the last decade, in fact). (As an aside, my wife loves her 2013 Fit Sport). Now, oil prices are rapidly rising, with the NY Times predicting up to $4.00/gallon in some states (such as California and Hawaii, to name two obvious candidates). Here in Texas, I expect $3.25-$3.50 by summer, given the cumulative stresses of the February Texas freeze, a population really ready, primed to travel, as the pandemic ends, and the re-emerging ghost of inflation. THEN, IMHO, we'll see a return to compacts and subcompacts. What goes around comes around . . . 

Honda did the right thing for their business they just don't sell here but I could care less I wouldn't buy a new one anyway there are still going to be used ones rolling around 10 15 years later. After that will be the time of EVs and hybrids anyways.

Don't tell me @clemsonrangers told on America to Honda and got it discontinued to increase Yaris sales?

I think a lot of the people in the market for a Fit went to other competitors like the Chevy Spark or Mitsubishi Mirage because of the Honda pricetag for their tin-can-on-wheels market competitor.

When you overprice a car when there is already a shrinking market, you'll lose buyers.

The cheapest new Fit for sale in the USA according to Autotrader is $14,994.

I can get a standard transmission Mirage G4 new for $8,911.

When you cost almost twice as much as the competition, what do you expect? I would argue as well that the Mirage with a manual will last a long time if you take good care of it!

Mini's are a good size for London in UK.  Smart cars fit nicely into many Paris parking spots.

Subcompact cars are too small for driving conditions in the US. 

You will have to share the road with large trucks & SUV's.

Many parts of the country have large potholes, which can cause damage to small wheels & tires.

Build quality of the Honda Fit is excellent, good choice for those that want a small car.

Sales are down so they decided to discontinue this model.

Civic is a better choice for most people.