AND BABY MAKES 5; Teeny Mazda minivan to join MPV in lineup.(News)

Byline: NATALIE NEFF

The folks at Mazda have been busy. Under what it calls the Mazda Millennium Plan, the company says that between 2000 and 2004 it "rebalanced'' production capacity, reorganized its subsidiaries, slashed costs by 25 percent and overhauled 70 percent of its product line. Net result: surging interest in the brand across Asia and Europe and record profits for fiscal 2004, with Mazda raking in 78 billion yen ($740 million) compared to the 14.9 billion yen ($143 million) it lost in 2000.

Little of that effort has paid off in the United States, however. Sales have remained essentially flat here the last four years, despite the launch of several exciting models like the Mazda 3, Mazda 6 and MazdaSpeed versions of the Miata and RX-8. So the automaker has pinned its hopes on a more conventional vehicle to try to change that trend- conventional with a twist, that is.

The new Mazda 5 is a sort of baby minivan, a C-class vehicle uncommon on these shores but highly popular in Europe, represented by models such as the Renault Megane Scenic and Opel Zafira. The 5 offers seating for six while providing plenty of room for cargo-and packages it all in a modified Mazda 3 platform stretched by just 4.3 inches.