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The Japanese automaker confirmed on Friday that it will phase out the six-year-old coupe sometime this year. The company will replace it with a two-motor hybrid version of the 2017 Accord sedan.

The CR-Z's demise reflects the profound challenges confronting hybrid-only models, with even the stalwart Toyota Prius getting crushed in the marketplace as consumers flock to bigger vehicles.

But the car had another problem, too: tepid performance and underwhelming fuel economy.

"The biggest problem with the CR-Z was it was touted as a fun-to-drive hybrid — and those things are generally at the opposite ends of the spectrum," Kelley Blue Book analyst Michael Harley said in an interview. "It's like low-calorie ice cream — it just doesn’t deliver what people expect."

When it was first introduced in 2010, the CR-Z was billed as a car geared for Millennials with a household income of $40,000 to $60,000, bearing a resemblance to the CR-X coupe of the 1980s. At an original price of $19,200, it was priced to sell.

But with gas prices averaging $2.25 per gallon on Friday, according to GasBuddy.com, interest in hybrids has diminished considerably.

What's more, the 2016 CR-Z's gas mileage trailed other hybrids at 37 miles per gallon on average for the automatic transmission version, compared to 52 mpg for the Prius.

"It just didn’t deliver anything a buyer in that segment was looking for," Harley said.

U.S. sales of the CR-Z in the first six months of 2016 dipped 6.7% to 1,205 vehicles.

Honda said in a statement that it is aligning "its product portfolio to best take advantage of growth opportunities in the marketplace."

To be sure, the company, long known for its strong grasp on the market for small cars, is not abandoning environmentally friendly vehicles. Honda announced in April at the New York Auto Show that it would introduce hydrogen fuel cell, electric and plug-in hybrid versions of the five-seat Clarity model in 2016, 2017 and 2018, respectively.

The hydrogen model is an upgraded version of a FCX Clarity fuel-cell vehicle sold in limited quantities for several years in California.

"Honda plans to significantly expand its sales of electrified vehicles with the addition of new volume models," the company said.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

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