[Charlie Hughes, Executive Officer in charge of North American operations]

Good morning and welcome to lunch with Mazda and the worldwide debut of the Mazda6 sedan.

It's been quite a week for us. In fact, it's going to be quite a year. And for a car guy like me, there's nothing better than having lots of new, exciting products to talk about.

In fact, just last week we were in Los Angeles where we debuted our new, more powerful 2002 Mazda MPV; with a 3.0-liter, 200-horsepower, 5-speed automatic transmission, 17-inch alloy wheels and a few clever seating arrangements definitely worth checking out later today in our booth.

It's so much fun to drive that we're saying it has the "Body of a Minivan. Soul of a Sports car."

Before we continue, I'd like to recognize Steve Odell, who is my Chief Operating Officer until January. He has just recently been appointed to fill the role as President of Mazda Europe.

I'd also like to recognize John Mendel who has just joined us as Executive Vice President of Mazda North American Operations.

And here to tell you more about our exciting products are a number of colleagues from our headquarters in Japan, led by the president of Mazda Motor Corporation, Mark Fields.

[Mark Fields, Representative Director and President]

As Charlie said, 2002 is vital for Mazda...it's our turnaround year. But I'm not going to bore you with a lot of numbers. I'm sure you've heard plenty of numbers over the last few days.

What you need to know is that our Millennium Plan, which we introduced to you last year, is on track and delivering. We are profitable now, and Mazda will be profitable when we close out our fiscal year at the end of March.

But it's not all about business plans and restructuring. We're profitable because we've got passionate people who've created terrific products. And I want you to experience their passion first hand this morning... so they'll have the spotlight.


In fact, we brought one designer and two of our engineers from Hiroshima so you could see the kind of talent that is responsible for turning Mazda around. These designers and engineers are the embodiment of Mazda's future... the creation of cars with a bit more character, that are just more fun to drive, and more interesting to own.

We're breaking out in many fronts. We're developing new powertrains...a new world-class all-aluminum four-cylinder engine and an all-new generation rotary engine. We're creating innovative platforms, that are bigger on the inside than on the outside, or at least that's the way it seems.

And last, but nearest to our heart, we are creating chassis whose driving characteristics will flat-out amaze you. In this company, we like to drive! My company car is an RX-7. And, as you might guess, it's a very special car! And we have a lot of special cars on the way. Two of which are here today.

For the record, we are investing a tremendous amount of money in product development. To be specific, 30 percent more over the next five years than the previous five years. The most we've ever invested!

We also believe we have one of the world's most flexible manufacturing system, but that's a story for another day. It's something you have to experience in person. So please come visit us in Hiroshima.

We are strengthening our sales and marketing activities on a global scale. For example, in Europe we beat our own target in 2001 and now control almost 80 percent of our distribution volume.

Most importantly, we know who we are. And where we want to fit in the marketplace. In 1998, we took a hard look at who we were and where we were going. We decided very quickly that we wanted to get back to being Mazda, a car company known for building cars that have style, sportiness, are fun to drive, and are a good value. This lead to a reconfirmation of our DNA...stylish, insightful and spirited. The U.S team used this as the basis for creating Zoom-Zoom...the emotion of motion.

This perfectly captures how all of us feel about Mazda. And after spreading to Europe and Australia, we've adopted it worldwide. Zoom-Zoom is emotionally what we're all about.

In the past, we said, as well as many of you, that there's a little bit of Miata in all Mazdas. We're building cars that really are more fun to drive, and are more fun to own because they are simply more useful and functional day in and day out.

For example, when we design a rear suspension system it's as important to us that the design yields tremendous space utilization, as it is that the car handles brilliantly. And we take our driving very seriously. So it must handle brilliantly.

As you can tell, we're excited.

Speaking of handling brilliantly, this line of thinking is Zoom-Zoom. And is perfectly embodied in our new mid-size sedan - the Mazda6. It is designed with class-leading driving dynamics, design and style. It builds on Mazda's technical strengths in the design and development of compact but powerful engines, embodied in vehicles such as the Miata and RX-7.

So ladies and gentlemen, let me show you the new Mazda6.

Now, I know this is a little unusual, but I have with me some of the key members of the development team for this car. They want to tell you, in their own words, about some of the key features they built into this car to make it special for customers and transformational for Mazda. First the Mazda6 chief designer Iwao Koizumi.

[Iwao Koizumi, Mazda6 Chief Designer]

(DESIGN)
The aim of the Mazda6's design is to connect emotionally with our target customers by visually communicating superb dynamic performance and outstanding interior space.

We focused on motion related factors like rhythm, speed and tension, We also built in continuity with our heritage. Mazda6's most unique characteristic is an athletic and condensed presence.

It has clear-cut shoulders and by cropping the corners of the body, and we confined the visual weight within the tires. It has the image of a well cut athlete.

Mazda6's face is a bold advance on Mazda's family face. Headlamp function is integrated so that the design reminds us of a wild animal eyeing its prey. Interior design aims to optimize the use of space and function layout to offer high quality comfort.

Masamichi Iida will now explain how our powertrains transfer design themes to performance on the road.

[Masamichi Iida, Mazda6 Powertrain Engineer]

(POWERTRAIN)
In order to realize driving pleasure which is Mazda's dynamic DNA – what we call "Oneness between the car and driver," Mazda6 has newly developed engines and transmissions to deliver linear and nimble responses. They also deliver good fuel economy and low emissions without sacrificing power and performance.

Mazda6 offers two engines for the North American market; the all-new I4 2.3-liter engine and the 3.0-liter V6 engine.

Both engines are available with manual and automatic transmission. The new 2.3-liter I4 engine is Mazda's all-new next generation engine, made completely of aluminum. It is characterized by powerful acceleration from just 1750rpm with 90% of the maximum torque.

The 3.0-liter V6 engine is a 24-valve engine with an aluminum cylinder block, using Sequential Valve Timing, variable fresh air duct, and dual silencer, to realize powerful and flat torque with a maximum output of 218Hp and maximum torque of 192ft-lb.

Combined with the 5-speed automatic transmission, the V6 engine offers a smooth driving feel, together with flat torque and smooth sound. We have perfected the powertrain for the vehicle that is the top of the Mazda6 series.

Both the I4 and V6 engines meet the U-LEV emission standards - they are clean and powerful engines.

Mazda6 design and powertrain attributes are enhanced by outstanding Driving Dynamics as well as innovative packaging. here's Tomohiro Hori to demonstrate.

[Tomohiro Hori, Mazda6 Packaging Engineer]

(DRIVING DYNAMICS)
"Driving Dynamics" is a very important attribute to us. It delivers Mazda's Zoom-Zoom feeling to our customers behind the wheel.

We focused on three points. "Precise & responsive steering," "Accurate & pleasant cornering" and "Crisp and reliable braking." Mazda6 aims to realize them all at the same time without sacrificing "ride comfort" and "quietness."

For the front suspension, we adopted a high-mounted double wishbone, which has a double-pivot lower-arm.

For the rear suspension, we employed Mazda's E-type multi-link system providing excellent stability. This technology is patented and unique to Mazda. It adds dramatically to Mazda6's driving dynamics and truly supports our spirited brand positioning.

Springs and dampers are stored 100% under the floor, freeing up a large luggage space.
We aimed to be a leader in the area of braking distance and pedal feel giving customers excellent control in the vehicle. We have an optimized low pedal ratio, a tie-rod vacuum booster, and a newly-developed, highly rigid brake hose. The result is a world-leading braking system.

We enhanced the body structure to deliver excellent ride comfort and quietness. We concentrated on the elements that greatly improve performance. For example, we built four cross members in the toe board.

In the area of safety, Mazda6 is designed to achieve top 5 star level of safety in the UN-CAP.
We structured the new body framework to effectively absorb collision energy. In addition, Mazda6 is equipped with the most advanced safety features such as dual stage front airbag and a newly-developed curtain airbag.

Now, Mazda6's Packaging completes its world-class offering. Let me take you through the main points.


(PACKAGING)
Mazda6 creates a new global standard in packaging. In order to achieve it, we had two objectives: The first was to create a space that accommodates a wide range of body statures and driving preferences among our customers. Let me explain using driving position as an example.

Mazda6 offers flexibility to meet all our customers' needs through top class seats and steering adjustability. When customers experience Mazda6 they will be surprised and delighted and realize how they unconsciously compromised in their driving position in other vehicles.

Our second aim was to offer flexibility to meet various kinds of vehicle usage. Please see the sedan. In the sedan, you can put four mid-sized suitcases into trunk. This is made possible by using a trunk-hinge doesn't protrude. With the 5-door hatchback, even larger opening and flexibility are realized.

The width of the opening of the cargo space is class-leading.

The rear seat is equipped with a mechanism we call the "KARAKURI-fold," which is the first of its kind in the world. Let me show you how the folding rear-seat works. (FOLD DOWN)

Karakuri in Japanese expresses a clever way to take people by surprise. With one action, just pulling the lever on the side of the cargo area, the seat automatically folds completely flat, creating a flat floor.

(video projection inserted)

As you can see on the screen, when the seat back is folded down, the seat also goes down. With a single, simple action, you can create a huge space.

This concludes our presentation of Mazda6. Thank you very much. Now, let me hand back to our president, Mark Fields.

[Mark Fields]

Last year we showed you the design/engineering feasibility model of the Mazda RX-8 and ignited excitement around globe for this, Mazda's brand icon. Well, recently we secured the RX name as key part of our future as well as our heritage, by approving the RX-8 program for full production. If you want excitement...this is it.

As a four-door sports car, Mazda RX-8 is an entirely new market proposition. It is powered by the "RENESIS," the more compact and higher-powered rotary engine, and uses a front-midship layout and freestyle door system.

While having genuine sports car styling, the Mazda RX-8 will offer an interior package spacious enough for four adults, as well as exceptional driving pleasure. This is the production styling and you will see this car on the road in 2003.

Thank you joining us today ladies and gentlemen and please stick around for lunch just outside the doors.