Honda just keeps slashing the cost of hybrid technology in a Quixotic quest to undercut the mighty Toyota Prius. It reportedly plans to offer the forthcoming Fit Hybrid in Japan at a price some say could spark a price war between Japan's two biggest automakers.
Reuters, by way of Japan's Nikkei business daily, says the Fit Hybrid will go for 1.5 million yen - about $16,780 - when it goes on sale in Japan this fall. That's about $2,500 less than the starting price of the Honda CR-Z we'll see in August and $3,000…