1998 Mazda ProtTgT A compact sedan with luxury car quality. By Kevin Ransom, New Car Test Drive .com

Mazda's Protege shows that subcompacts aren't the barren transportation devices they used to be. Buying a subcompact just a few years ago meant settling for a spartan, low-quality econobox that lacked power and handled poorly.

Today, makers of economy cars know they have to deliver the goods to consumers. Chrysler recently learned this the hard way. Consumers who attended their product clinics said they wanted a five-cent cigar--an economy car that was cheap, inexpensive, economical. Chrysler listened to its customers and designed bare-bones Neons that retailed for less than $10,000. It was a mistake. Few bought these inexpensive models. Instead, people bought small cars that offered quality and features that approached the levels of larger, more expensive cars.

Mazda's Protege is a great example of this latter category. The Protege offers a luxurious ride quality, sporty handling, respectable performance and more interior space than many luxury cars. Quality is at luxury car levels because the Protege is built at a state-of-the-art assembly plant designed to produce Lexus-like luxury sedans.

Mazda completely redesigned and re-engineered the Protege for 1995. It was strengthened with an extremely rigid, but lightweight, chassis, which substantially improved ride quality and handling. Mazda's engineers employed some clever space-management techniques to increase interior space. The Protege is roomier than the Honda Civic, Toyota Corolla and Nissan Sentra. In fact, it's roomier than some mid-size and luxury cars. While they were at it, Mazda's design team improved the Protege's aesthetic appeal by giving it a more ovoid shape.