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.