Bill Pierre Ford

Microsoft hopes to SYNC up with the auto industry. The software giant’s high-tech infotainment system has been one of the few big success stories for Ford Motor Co. this past year, drawing in the sort of high-tech-savvy buyers who might normally steer over to an import brand.

Now with Ford about to lose its brief exclusive on the SYNC system, Microsoft is ready to make a major push into the auto industry, the Detroit News reports. The Washington-based software company “will announce a massive new investment in its automotive business unit,” the paper reports. And it has tapped Detroit native and Microsoft veteran Tom Phillips to head the operation.

“We know that things are tough for the auto industry, but it’s the perfect time to make this investment,” said Phillips. “There are new customers coming into the market and they are looking for new experiences.”

There’s been a general trend toward increasing the level of electronics in the average car. High-line manufacturers, such as BMW, with its complex iDrive system, can have more than $10,000 in silicon-controlled systems, ranging from engine, chassis, and safety controls to navigation and in-car entertainment. Even low-end vehicles are being offered with high-tech hardware.

Part of the challenge is to come up with technology that not only offers a wide array of features, but that is also easy to use. BMW has been repeatedly faulted for the complexity of iDrive, and plans a complete remake of the system shortly. Microsoft, however, has won kudos for SYNC, which offers the driver a variety of ways to issue a command, including one of the best voice control systems on the market. Ford recently launched a second-generation SYNC system that adds such features as traffic and weather, along with the ability to track restaurants, movie schedules, and gas prices.

Using SYNC as a come-on in its entry-level sedan, Ford has reportedly driven up the average transaction price on its Focus by $1,000 over the past year. As it expands availability, he automaker expects to sell about 1 million vehicles equipped with SYNC by the end of 2009.

But as with much of the technology provided by outside suppliers, manufacturers like Ford are generally granted limited exclusivity. And Microsoft is already beginning to license the SYNC system to other manufacturers, including the Korean upstart Hyundai, which expects to bring its own version to market within the next several years.

Your growing brood has you shopping for a people carrier, but that doesn’t have to herald the death of driving fun. Granted, there aren’t many cars in the United States that marry seven-passenger capacity and driving excitement, but if you look to the other side of the Atlantic, Ford offers a vehicle that’s fun to drive, affordable, and able to haul the whole family. That vehicle is the S-Max.

Since its introduction in 2006, this minivan/sporty hatchback has snapped up awards quicker than a kid can shout “Yes!” to ice cream. The S-Max was even named the 2007 European Car of the Year. But why should Americans care about this Euro-centric Ford? Because CEO Alan Mulally is talking about bringing some of the company’s European offerings to the U.S. market, and we think the S-Max should be at the top of his list.

The S-Max is available with a range of gasoline and diesel four-cylinder engines, but we drove the top model, which comes with a 217-hp turbocharged five-cylinder. This Volvo-sourced powerplant would be the best fit for American buyers, because it gives the S-Max abundant torque and impressive pace. Plus, the car we tested returned close to 30 mpg on the highway. Inside, the S-Max–which feels roomier than most SUVs–isn’t as big as a Honda Odyssey; think of it as a bulging Mazda 5 with one more seat. Scanning the list of options, you might think that the S-Max wears a three-pointed star. From an adjustable suspension to ventilated seats to touch-screen navigation to a huge glass roof, this Ford gives up little to a Mercedes-Benz R-class.

But to truly appreciate the S-Max, you need to toss it through a few corners, where the Ford effectively resists understeer while giving the driver excellent chassis feedback, like a big Volkswagen GTI. Body control is impressive, and the dampers soak up cambered and lumpy roads with ease.

Despite our fondness for the S-Max, there are a few hurdles for Ford to jump before it could bring the car to the United States. At this point, there’s no automatic transmission option with the five-cylinder engine, and the weak dollar no doubt would hurt the pricing strategy. More important, Ford would have to hire a brilliant marketing team–and maybe a hypnotist–to convince the typical American that a minivan can be cool and fun to drive.