Same with Honda Fitta, with fitta being Swedish for pussy. And kiss, famously the name of a band, is Swedish for pee. Stadler also named one of their trains KISS, though in Sweden they marketed it by the working name Dosto.
I'm skeptical about the truth of the Honda Fitta ever being considered for the name. And I'm calling full BS on it.
Doing a little research on this... There's only a few articles, mostly quoting random people on the Internet. No good verified sources on it. Wikipedia mentions it too, but only links to those same articles.
Long before the Fit was ever a car, Honda already made a Jazz in Europe (which was called the Honda City in other markets). And it would make sense for the current Jazz to succeed that car. It would make less sense for them to rename it to the Fit for Europe, as the Jazz was already a recognized model.
https://www.swedishfood.com/fika