Honda Civic continues to be the car to beat with a wide range of bodystyles, engines, and equipment. Civic is a solid car that has good performance, a nice ride, and a high degree of civility. Also a Best Buy, Ford Focus doesn't offer the refinement of the Civic, but doesn't cost as much either.

Topping the crowded Recommended list are Volkswagen Golf and Jetta. They easily could be Best Buys. However, they are among the most expensive cars in this segment. Other Recommended choices include the redesigned but still reliable Toyota Corolla, the sporty Nissan Sentra, and the roomy Mazda Protege. Each of these is a valid alternative to a Best Buy if price is your major concern.

Civic isn't due for another redesign until model-year 2006, but may add another model or two before then. One candidate is a U.S version of the 200-hp Type-R hatchback offered in Japan and Europe. Another prospect is the Stream, a Civic-based sport wagon that's been sold overseas for several years. We spotted one some months ago at American Honda's California headquarters, presumably undergoing evaluation. If Stream does come Stateside, one source predicts it will be renamed Latitude. Look for a 2.0-liter 4-cyl engine, tall-body styling, and seating for up to seven if Honda decides to challenge the likes of Toyota Matrix and Pontiac Vibe.

Honda is also said to be mulling a smaller-than-Civic car for North America. This would be based on the popular Japan-market Fit, a low-cost 4-dr hatchback known in Europe as the Honda Jazz. Another high-body 5-passenger design, it features 1.6- and 1.7-liter 4-cyl engines and, say overseas journalists, surprising interior room for its overall size. Industry-watchers think American Honda might bring it here to counter Toyota's upcoming youth-oriented Scion models, but only if those threaten sales of low-line Civics. Nothing is decided yet, but the betting is that Fit/Jazz wouldn't reach the U.S. until model-year 2005 at the earliest.

Sales-wise, Civic slipped in 2002, the first year-to-year loss for this line in quite a while. Still, the modest 5.6-percent loss didn't rob Honda of its claim to America's favorite subcompact, as Civic ran well ahead of number-two Ford Focus and third-place Chevy Cavalier.