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The U.S. version is expected to be sourced from Mazda’s new plant in Salamanca, Mexico, which opened earlier this year and makes the Mazda3.

The fourth-generation Mazda2, called the Demio in Japan, will go on sale here in the fall, Mazda said in a statement. It will hit American showrooms in 2015.

U.S. sales of the outgoing Mazda2 surged 42 percent to 7,957 vehicles in the first six months of the year, from 5,594 the year before, as the carmaker cleared out inventories.

But last year, sales of the aging nameplate, which is getting its first full redesign in seven years, slumped 39 percent to 11,757.

That ranked it near the bottom of the subcompact segment, way below such rivals as the Chevrolet Sonic, the Ford Fiesta, the Honda Fit, the Kia Soul, the Nissan Versa, the Hyundai Accent and the Toyota Yaris.

The next Mazda2 will also provide the basis for a new subcompact sedan from Toyota Motor Corp. That car will be made in Salamanca, where Mazda has allocated about 50,000 vehicles for Toyota from its full annual capacity of 230,000 units. While that car will get Skyactiv underpinnings, including a Skyactiv engine, it will have a Toyota-designed body. Output for Toyota is expected to begin after April 1, 2015, but before March 31, 2016.

Vezel is the car’s Japan-market name. The U.S. name will be announced later, Honda said today.

In the United States, Juke sales have climbed 4 percent this year and Mazda CX-5 demand has surged 95 percent. Sales of the new Subaru XV Crosstrek have totaled 48,216, while Buick Encore sales are 29,195.

Honda plans to source all U.S. Vezels from its new plant in Mexico

A spokesman said Honda wants to establish the gasoline version in the market before deciding on whether to add a hybrid option to the lineup

Honda is also banking on the vehicle to fuel a big surge in U.S. sales. Honda built the new plant in Mexico with capacity of 200,000 units just to make the crossover and the Fit hatchback. More than half of the plant’s capacity will be devoted to the crossover, says Ito.

The strategy underscores how Toyota is playing catch-up in a fundamental field, as rivals gain on the automaker's top fleet average fuel economy in the United States with big advancements in such fuel-saving technologies as direct injection, turbocharging and stop-start systems. For years, Toyota has focused on its best-selling gasoline-electric hybrid systems. It hasn't abandoned that track.

Toyota is seeking fuel economy increases of up to 30 percent and cost cuts on key components of up to 50 percent.

"Just like putting something beautiful on top of your hairdo, by using kanzashi through such things as turbocharging or downsizing, you can improve the performance of the engine."Kanzashi add-ons may include direct fuel injection, exhaust gas recirculation systems or stop-start technologies that turn off the engine when the vehicle stops.

The EPA's annual report on fuel economy trends, which calculates automakers' fleet average fuel economy based on sales, shows Toyota losing ground to rivals such as Nissan and Mazda. For example, in 2010, Toyota's U.S. fleet average fuel economy was 25.4 mpg. In 2013, it was 25.2 mpg. Meanwhile, Mazda improved from 24.4 mpg in 2010 to 27.5 mpg in 2013, and Nissan rose from 23.3 mpg to 24.6 mpg during the period.

"Eventually we think this is where the technology is going, but right now we don't know what the reaction of U.S. customers will be," he said. "So probably right up until the last moment, we will have to be ready with both and watch customer feedback."

Research Association of Automotive Internal Combustion Engines. It pools the resources of Toyota Motor Corp., Nissan Motor Co., Honda Motor Co., Mazda Motor Corp., Mitsubishi Motors Corp., Daihatsu Motor Co., Suzuki Motor Corp. and Fuji Heavy Industries Ltd., the maker of Subaru-brand vehicles.

The objective is to share costs in an increasingly competitive, investment-heavy field to meet more stringent fuel economy guidelines, organizers

The strategy is patterned after a similar approach taken by competitors in Europe, organizers said. There, rivals cooperate with academia and the government on basic technologies, giving European carmakers a head start in cutting costs.

While Japanese automakers have developed advanced electric and hybrid drivetrains, the creation of AICE acknowledges that internal combustion engines will remain the workhorse of global fleets for a long time, especially in cost-sensitive emerging markets.

Organizers outlined a 10-year time frame for achieving world-leading advancements in combustion engine efficiency.

Engineers target thermal efficiency rates for both approaching 50 percent. That compares with today’s best rates of around 39 percent for gasoline engines and 42 percent for diesel engines. Higher thermal efficiency means more energy from internal combustion is captured for higher engine output. Organizers said such a breakthrough could boost the fuel efficiency of gasoline and diesel engines 30 percent by 2020.

Diesel engine development will focus on eliminating particulate matter and nitrogen oxide emissions, partly through better particulate filters and exhaust gas recirculation systems. Gasoline engine research will focus on achieving more complete combustion cycles and better ignition while reducing knock.

Keiji Ohtsu, managing officer of Honda R&D Co., Honda’s product development arm, will be AICE president.