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REYKJAVIK, Iceland – Mazda may be arriving late to the compact cross/utility vehicle segment, but the all-new CX-5 is bound to make a dent when it goes on sale in most markets, including the U.S., after the first of the year.

As a styling exercise, the CX-5 could get lost in the crowd or confused with its bigger sibling, the CX-7. The interior carries over many familiar Mazda design cues, including high-gloss piano black trim used sparingly, but does not necessarily raise the bar for the segment.

What makes the CX-5 compelling are two sophisticated new 4-cyl. engines – one turbodiesel and one direct-injection gasoline – and two redesigned 6-speed transmissions, manual and automatic.

These are the primary building blocks of Mazda’s new SkyActiv product strategy, which takes a more holistic approach to vehicle design by integrating lightweight suspension components and underbody with advanced powertrains and electric power steering to achieve world-class safety and fuel economy, while reinforcing the brand character.

Hand-built prototypes driven by journalists here in advance of the CX-5’s worldwide debut at the upcoming Frankfurt auto show in September suggest the SkyActiv suite of technologies is more than a clever marketing ploy.

The engines and transmissions are impressively proficient in moving these 5-passenger CUVs along the undulating terrain here.

The four prototypes are powered by the 2.2L diesel mated with the 6-speed manual and automatic, as well as the 2.0L gasoline I-4 with the same transmissions.

Each combination is stellar in its own right, capable of making long, flat stretches of desolate Arctic highway downright euphoric. Torque is readily available at low- and mid-range engine speeds.