“Cleaner, alternative-fuel vehicles are the future of our corporate fleet,” said Jerome Webber, AT&T’s vice-president of fleet operations. “The Transit Connect Electric represents a real breakthrough and will be a strong addition to our range of alternative-fuel vehicles.”

Don’t expect this purchase to replace a significant portion of the communications company’s fleet. Azure Dynamics — the firm responsible for converting the European vanlet into an EV — is limiting the first year’s production, and AT&T says it only plans on buying two examples for the time being.

Still, the company will have a chance to fully evaluate the electric Transit Connect next to the 15 gas-powered examples it already owns. Apart from a limited range and the absence of a four-cylinder’s buzz, we doubt most employees will notice a difference — the cargo area is left untouched, granting as much space (and nearly as much payload) as the standard Transit Connect.

Ford said on Thursday that the new 3.7 liter V6 Mustang would achieve 305 horsepower and 30 miles per gallon in highway driving, as certified by the U.S. Environmental Protection Agency.

Both ratings are a notch above General Motors Co’s [GM.UL] 2010 Camaro, which outsold the Mustang and all other sports cars in February for the ninth consecutive month.

A Camaro equipped with a 3.6 liter V6 engine is rated at 304 horsepower and 29 miles per gallon on the highway.

Ford said late last month that it had taken nearly 11,000 orders for the 2011 Mustang, triple the number for the 2010 model at the same point in its launch.

Amy Marentic, marketing manager for Ford’s cars and crossovers, said the automaker’s research has shown that fuel economy is one of the major reasons that consumers rule out buying a Mustang.

The marketing campaign Ford will roll out to support the launch of the new Mustang will emphasize improvements in the fuel economy and interior of the sports car, she said.

“The Mustang is a very emotional car but we’re going to give people a rational reason to purchase,” she said.

Ford outsold GM on an overall basis in February, the first time it had done so since 1998.

But the muscle car segment has been a historically important battleground for Detroit automakers and one of the only segments — along with full size trucks and SUVs — where import brands have not made significant headway.

Consumer Reports has released its annual list of top domestic cars, and Ford is all over the list. In fact, Ford, Lincoln and Mercury vehicles claimed seven of the ten categories.

According to Consumer Reports (CR), the top picks must adhere to specific criteria: “The vehicle must rank near the top of its category in our ratings; It must have average or better reliability, according to our latest Annual Auto Survey; It must have performed well if included in a government or insurance-industry crash or rollover test; It must provide electronic stability control (ESC) as standard or a readily available option.”

Consumer Reports notes that most of the domestic winners are also the highest scoring cars in their categories – even when they’re pitted against their foreign competitors.

“Each year that Consumer Reports offers up its annual list of Top American Picks, it seems less and less a consolation bracket and more like a reasonable set of choices,” explains Autoblog. “To wit, if you wanted the very best family-sized SUV (Chevrolet Traverse) or fullsize pickup truck (Chevrolet Silverado), Consumer Reports will tell you that you’re best off choosing American, regardless of which list its from.”

While Ford monopolizes the list, General Motors takes the remaining two spots with its Chevrolet models. However, a notable domestic omission is Chrysler, which doesn’t snag one spot – and not even in the Family Hauler category, which doesn’t have a winner.

The Consumer Reports American Top Picks 2010 are:

Small car: Ford Focus

Family sedan: Ford Fusion/Mercury Milan

Sporty car: Ford Mustang GT

Small SUV: Ford Escape/Mercury Mariner

Family SUV: Chevrolet Traverse

Sports sedan: Lincoln MKZ

Green car: Ford Fusion Hybrid

Family hauler: None qualify

Pickup truck: Chevrolet Silverado

Best car overall: Ford Fusion Hybrid

If you’re in the market for a new car, check out the U.S. News rankings of this year’s best cars as well as this month’s best car deals.

On June 10, 2006, Koua Fong Lee’s car shot up an exit ramp at a speed police said was between 70 and 90 miles per hour. His car hit an Oldsmobile on the ramp, killing three people.

Photo: Lee wipes away tears in prison.

“I know 100 percent in my heart that I took my foot off the gas and that I was stepping on the brakes as hard as possible.” Lee said in an interview yesterday at the state prison in Lino Lakes, north of Minnesota.

The car he was driving was a Toyota.

A jury found Lee guilty of criminal vehicular homicide for the deaths of Javis Adams, Javis’s 10-year-old son, Javis Jr., and Javis’s 7-year-old niece Devyn Bolton. A judge sentenced him to eight years in prison, and Lee has been serving his time since 2007.

Photo: Gas pedal from a recalled Toyota Camry. This is not the car or model that Lee was driving.

The acceleration problems plaguing numerous Toyota models are now well-known, and the rounds of expanding recalls have damaged the auto maker’s reputation, but when Lee’s car was examined after the accident, Lee was “told that nothing was wrong with the brakes.”

The model Lee was driving, a 1996 Camry, has not been recalled by Toyota, but Lee’s accident is among a growing number of cases, some long resolved, that are getting new attention since Toyota admitted its problems with sudden acceleration were more extensive than originally believed.

The family members of those killed in the accident, who condemned Lee at his sentencing, now believe he is innocent and are preparing a lawsuit against Toyota. Phil Carruthers, who prosecuted Lee, says that if Lee’s car was defective, “We don’t want an innocent man sitting in prison.” Toyota had no comment on Lee’s case.

The Japanese automaker said it received a subpoena from a federal grand jury in New York seeking documents related to unintended acceleration in its vehicles and the braking system of its Prius hybrid.

Toyota also said it received a subpoena and a voluntary document request from the Los Angeles office of the U.S. Securities and Exchange Commission. The SEC is seeking documents related to unintended acceleration as well as to its disclosure policies and practices, Toyota said.

The subpoenas are the latest demand for documentation from Toyota Motor Corp. Over the weekend, the company turned over documents to congressional investigators, with some boasting it saved money by obtaining a limited recall from regulators in 2007.

The documents could create a big challenge for Toyota President Akio Toyoda, who is scheduled to testify at a House Oversight and Government Reform Committee on Wednesday. Two House committees are holding hearings this week on the Japanese automaker’s recall of 8.5 million vehicles since the fall to deal with safety problems involving gas pedals, floor mats and brakes.

Toyota said it received the grand jury request from the Southern District of New York on Feb. 8. It received the SEC requests on Friday. It disclosed the latest requests in a filing with the SEC on Monday and said it intends to comply with the requests.

Toyota declined to comment beyond its disclosure with the SEC.

A spokeswoman with the U.S. Attorney’s Office for the Southern District of New York declined to comment, saying it does not confirm or deny its investigations as a matter of policy.

The government could be looking into product safety law violations or whether Toyota made false statements to a federal safety agency, the National Highway Traffic Safety Administration, involving unintended acceleration or the Prius braking system, said Peter Henning, a law professor at Wayne State University in Detroit.

“In their prior submissions, if there were false statements made in there, that could b be the basis” for the investigation, said Henning, a former Justice Department and SEC lawyer. In addition, the SEC likely is looking into whether Toyota disclosed all of its problems in required regulatory filings, he said. Both agencies could be working together as well, he said.

Eric Dezenhall, a crisis management consultant in Washington, said the subpoena might cause Toyota to limit its testimony because apologies are admissible in court.

“On one hand, heavily-lawyered testimony may anger members of Congress,” Dezenhall said. “On the other, no matter what Toyota does, their testimony will be deemed inadequate. That’s just the nature of the beast. Congressional hearings are not fact-finding missions, they are scolding forums. Toyota’s goal is to survive, not ‘win.”‘

He predicted that in this week’s congressional hearings, company officials would walk a line between testimony carefully phrased to avoid legal liability, and enough disclosure to describe the cars’ mechanical problems and the steps Toyota is taking to make the vehicles safer.

A spokesman for Rep. Darrell Issa, R-Calif., a top Republican on the House Oversight and Government Reform Committee, said the actions by the SEC and U.S. Attorney’s Office don’t change the Committee’s expectation for a transparent and candid discussion with Toyoda.

“Toyota has maintained they have nothing to hide and we expect them to provide straight-forward and honest testimony,” said Kurt Bardella, a spokesman for Issa.

Claims by Toyota in internal documents that it saved money by obtaining a limited recall from regulators in 2007 will also create problems for the automaker’s president when he testifies before U.S. lawmakers this week.

Toyota, in an internal presentation in July 2009 at its Washington office, said it saved $100 million or more by negotiating an “equipment recall” of floor mats involving 55,000 Toyota Camry and Lexus ES350 vehicles in September 2007.

The savings are listed under the title, “Wins for Toyota — Safety Group.” The document cites millions of dollars in other savings by delaying safety regulations, avoiding defect investigations and slowing down other industry requirements.

The documents could set off alarms in Congress over whether Toyota put profits ahead of customer safety and pushed regulators to narrow the scope of recalls.

“You can feel that the staff were thinking more about company profits than customers,” Mamoru Kato, an analyst at Tokai-Tokyo Securities, said in an e-mail after viewing the documents.

The documents were turned over to the House Oversight and Government Reform Committee — which is scheduled to hold a hearing Wednesday — and obtained by The Associated Press on Sunday. The presentation was first reported by The Detroit News.

The world’s largest automaker has been criticized for responding too slowly to complaints of sudden acceleration in its vehicles that are threatening to undermine its reputation for quality and safety.

Toyota said in a statement: “Our first priority is the safety of our customers and to conclude otherwise on the basis of one internal presentation is wrong. Our values have always been to put the customer first and ensure the highest levels of safety and quality.”

The internal presentation was dated July 6, 2009, less than two months before a high-speed crash near San Diego killed a California highway patrol officer and his family and reignited concerns over sudden acceleration in Toyotas.

In October 2009, Toyota issued its largest-ever U.S. recall, involving about 4 million vehicles, over concerns of pedals getting stuck in floor mats.

The documents also show a company expecting tougher regulation under the Obama administration.

Toyota highlighted some challenges it faces, including an “activist administration & Congress — increasing laws & regulation,” “massive government support for Detroit automakers” along with “continuing economic difficulty.”

Under a heading titled “key safety issues,” Toyota called the Transportation Department and NHTSA under Obama “not industry-friendly” and said the auto industry expected “a more challenging regulatory and enforcement environment.”

The presentation lists Yoshi Inaba, Toyota’s chief executive in North America, on its cover. Inaba is scheduled to testify before the House Oversight Committee on Wednesday, along with Toyoda and Jim Lentz, president of Toyota Motor Sales USA. The committee is also expected to hear from LaHood, NHTSA Administrator David Strickland and safety advocates.

The House Energy and Commerce Committee is holding a hearing Tuesday with Lentz, LaHood and Strickland. A Senate committee is planning a March 2 hearing.

“The Reservations program is providing Ford with a better understanding of consumer preferences, Ford said in a statement. “Nearly 60 percent of customers are opting for high series models, and 65 percent are choosing the five-door hatchback. Among the top three color choices are Blue Flame and Lime Squeeze.”

“People saw the Fiesta come to life through the Fiesta Movement, a program where 100 young trendsetters drove a European-spec Ford Fiesta for six months, which created tremendous interest for the vehicle,” said Sam De La Garza, Fiesta brand manager. “That interest now has translated into 6,000 reservations from interested consumers who can build and price their Fiesta.”

Fiesta reservations can be made by visiting www.fordvehicles.com/2011fiesta or by texting “reserve” to 4Ford on an iPhone or BlackBerry.

After a series of big introductions, with the new Taurus being the most recent, Ford has a secret weapon up its sheet-metal sleeve. The new Explorer is due to go on sale later this year, yet it hasn’t shown up at any of the auto shows. All we have to go on are a few slim details:

• It will be unibody, not another heavy, fuel-wasting body-on-frame design.
• It will come with an incredibly fuel miserly powertrain, the four-cylinder EcoBoost turbocharged engine.
• The look will probably roughly parallel the concept that Ford introduced at the Detroit auto show a couple of years ago, seen above, which was generally well received but didn’t exactly set the world on fire.

A game changer?

If the new Explorer could combine 30-mile-a-gallon performance with all the good vibes that go with Explorer that was American’s favorite family vehicle a decade ago, the brand could have its next mega-winner. Small crossovers are the hot segment — and the new Explorer would be right-sized at being just a little bigger.

Jalopnik says the new Explorer will have an updated version of the same chassis used on today’s Taurus, Flex and Lincoln MKS and MKT.  “It’ll be sized and shaped like an oversized, three-row (Ford) Edge … with the spoiler across the back and everything,” Jalopnik writes. There are few spy shots of the new Explorer tooling around the landscape.

Yet Drive On can’t figure out why Ford is keeping the new Explorer under wraps for so long. The Dearborn crew has one last chance to roll it out before a lot of eyes — the New York Auto Show in April. You’ll be the first to know what we see.

The all-electric van has a targeted range of up to 80 miles per full charge, and will be rechargeable using either 240-volt or standard 120-volt outlets.

The electric drive system is supplied by Azure Dynamics, Oak Hill, Mich.

Production is expected to begin in late 2010, Ford said.

The company also introduced a taxi version of the small van. The van will include a prep package for converting to compressed natural gas or propane.

Production will begin later this year.

Toyota shares this morning are off by $1.49, or almost 2%, at $73.22.

The move could come in Japan first, as early as tomorrow, and shortly after in the U.S. and could affect more than 270,000 vehicles between the two countries. , according to the report. The recall is reportedly prompted by issues of defective software for the Prius’s break system.

Meantime, The Journal today carries an interview with Honda Motor’s (HMC) CFO Yoichi Hojo in which he warns the problems at Toyota could dent consumers’ faith in the quality of vehicles and safety issues broadly. Honda is planning to step up its auto incentives to try and take advantage of the situation.

Honda shares are down 53 cents, or 1.5%, at $33.96.

Ford (F) shares are up 22 cents, or 2%, at $11.13.

Mr. LaHood said his advice to owners of recalled Toyotas was to “stop driving it, take it to a Toyota dealer because they believe they have a fix for it.”

“We need to fix the problem so people don’t have to worry about disengaging the engine or slamming the brakes on or put it in neutral,” Mr. LaHood said in response to questions.

His comments at the hearing, which appeared to be off the cuff, came shortly after he told reporters that he planned to call the president of Toyota, Akio Toyoda, about the recalls and after the Japanese government told the carmaker to examine the brakes on its hybrid Prius. Drivers in Japan and the United States have complained that the brakes momentarily stopped working when driving at low speeds.

“I’m going to take the initiative to have a conversation with Mr. Toyoda very soon, to talk to him about how serious this is, and to make sure that he understands,” Mr. LaHood said. “I think he understands, but I’ve never talked to him. I just feel like I need to have a conversation with him.”

Mr. LaHood’s comments Wednesday were the latest in an aggressive campaign by his department over the Toyota situation. Last week, Mr. LaHood took credit for the company’s decision to stop building and selling eight models involved in a recall over accelerator pedals that could potentially stick, saying Toyota did not take the step until urged to do so by the department.

Some safety advocates said however that Mr. LaHood might be trying to protect federal safety regulators from potential liability issues over their role in investigating defects.

Mr. LaHood told reporters that regulators have the resources and expertise to conduct a thorough review of consumer complaints regarding unintended acceleration in Toyota focusing on electronic throttles. The National Highway Traffic Safety Administration “is not finished with this safety issue involving Toyota,” he said, explaining that the department would look into the possibility of electromagnetic interference with the accelerator system.

“I think at the department, we will continue to look at the electronics, continue to study that, continue to work with Toyota on that, and then make a judgment about that,” Mr. LaHood said.

He confirmed Wednesday that the Transportation Department was considering a civil penalty against Toyota over the handling of the recalls.

Toyota had no immediate response to Mr. LaHood’s comments. The company’s shares on Wall Street were down 7.2 percent.

Lawmakers and the Transportation Department have stepped up pressure on Toyota, seeking proof that problems that could cause its cars to speed up unexpectedly were limited to floor mats and sticking pedals.

In a letter to James E. Lentz III, the president of Toyota Motor Sales U.S.A., Representatives Henry A. Waxman and Bart Stupak asked the automaker to provide documents showing that the computer systems on its cars were not at fault — something Toyota has vigorously denied.

Mr. Waxman is the chairman and Mr. Stupak a subcommittee chairman of the House Energy and Commerce Committee.

Mr. LaHood said in a statement Tuesday that Toyota had announced the recalls only after department officials flew to Japan “to remind Toyota about its legal obligations.”

In a statement, Toyota said it had received and was reviewing the committee’s letter.

“We will of course cooperate with the committee’s inquiry,” Martha Voss, a Toyota spokeswoman, said. She did not comment on Mr. LaHood’s statement.

As it worked on solutions to the acceleration problem, Toyota has said that computers on its cars were not at fault.

But lawyers, safety advocates and consumers continue to raise questions about the cars’ electronic systems, which they say could cause a car’s throttle to stick. Toyota faces 11 class-action lawsuits over accidents involving the defect.

In their letter, Mr. Waxman, Democrat of California, and Mr. Stupak, Democrat of Michigan, told Mr. Lentz that statements he had made in interviews appeared to contradict information Toyota officials gave to committee staff members in a meeting last week. The Energy and Commerce Committee plans a hearing late this month to explore two recalls of Toyota vehicles related to reports of cars speeding up unexpectedly.

The House Committee on Oversight and Government Reform plans its own hearing on Toyota next week. Mr. LaHood is expected to testify, as is Yoshimi Inaba, the chief executive of Toyota’s North American operations.

On Monday, the company announced a remedy meant to prevent accelerator pedals from sticking on 2.3 million vehicles in the United States. Toyota also has recalled more than five million vehicles because their floor mats could become stuck in floor pedals.

In a conference call with journalists on Monday, and in interviews on NBC, CNBC and ABC, Mr. Lentz emphasized that Toyota was confident its fixes would solve the problem.

“It is not an electronics issue,” Mr. Lentz said.

In response, the Energy and Commerce Committee asked Toyota to submit documents supporting the claim as well as information that might counter it. It is seeking the documentation by Friday. In the letter, Mr. Waxman and Mr. Stupak also took issue with Mr. Lentz’s comments that Toyota first knew of sticking gas pedals in late October.

During a meeting with committee staff members on Jan. 27, Toyota officials said they first learned of this problem through reports of sticking pedals in vehicles in England and Ireland in April or May 2009.

In August, Toyota began production changes on models sold in Europe, and it recalled 1.8 million vehicles there last week for the pedal problem. They will receive the same repairs as cars sold in America, a Toyota Europe spokesman said.

The letter asked Toyota to clarify when it first learned of the problem and any action that might have been taken.

The representatives also made note of Mr. Lentz’s comments Monday in which he expressed confidence that the repair to the Toyota vehicles “is going to stop what’s going on.”

In the meeting with committee staff members, Mr. Waxman and Mr. Stupak said company officials had said the causes of sudden acceleration were “very, very hard to identify.”

The statements by Mr. LaHood came as he criticized the company Tuesday in an interview with The Associated Press.

Mr. LaHood contended that federal safety officials, in the meeting with Toyota in Japan, had to “wake them up” to the seriousness of the situation.

Last week, Mr. LaHood contended that pressure from his department was the reason Toyota had decided to stop building and selling eight models involved in the recall for sticking pedals. Toyota initially said the action came voluntarily.

“They should have taken it seriously from the very beginning when we first started discussing it with them,” Mr. LaHood told The A.P. “Maybe they were a little safety deaf.”

However, the federal safety agency faced its own criticism Tuesday from the Center for Auto Safety, a consumer group.

It said federal documents on Toyota acceleration cases did not give a clear picture of how the agency had conducted investigations, or what the results had been.

“Toyota unintended acceleration to date raises more questions than answers,” Clarence Ditlow, the group’s executive director, said in a statement.

Jiangling Motors Co. uses the same supplier, CTS Automotive of Elkhart, Ind., that made pedal assembly parts for some Toyotas.

Jiangling makes a diesel-powered commercial bus, the Transit Classic, for the Chinese market. The vehicles went into production in December and only about 1,600 were made before assembly was stopped.

Ford has said there have been no reported problems with the Transit Classic, and that none of its other vehicles use gas pedal parts made by CTS.

Accelerators made by CTS are at the center of a large recall and halt in production by Toyota over fears that the gas pedals can become stuck and lead to uncontrolled acceleration.

Joining Ford as founding partners are Ralph Booth, the former CEO and chairman of Booth American Co., a Detroit-based private investment firm, and Mark Schultz, the president of international operations at Ford from 2005-2007.

Fontinalis, which is not affiliated with Ford Motor, will concentrate on transportation-related companies.

The amount of money it has under management was not disclosed.

“We are delighted to introduce Fontinalis Partners to the world,” said Ford in a press release.

“We take our mission very seriously to invest in and assist firms currently providing transformational ideas and products devoted to solving the world’s most pressing environmental and mobility oriented problems.

“We believe we are well positioned to do tremendous things to accelerate growth for companies we choose to partner with, and all while doing positive this for both society and the environment.”

The firm will also have an office in Boston. Founding principals are Chris Cheever and Chris Thomas.

The Ford F-150 is getting a new six-cylinder engine in addition to the 3.5-liter EcoBoost V-6 that’s slated to arrive by the end of this year, according to PickupTrucks.com sources. The new mill is the same Ti-VCT 3.7-liter V-6 that debuted recently in the 2010 Ford Mustang, the sources said.

The 3.5-liter V-6 twin-turbo gasoline direct-injection EcoBoost engine promises to deliver the performance of a V-8 with the fuel efficiency of a V-6, and is expected to cost more than previous V-6 engines in the F-150 lineup.

The V-6 shared with the Mustang is expected to be the base engine for the F-150 and will likely only be available for the XL and STX models, though it could make its way into the XLT. Fleet owners are most likely to be its customers, looking for a low-cost pickup. Ford Ranger buyers are another potential target for the 3.7-liter V-6 when production of Ford’s compact pickup ends in 2011. The 3.7-liter V-6 is rated at 30 mpg in the Mustang, and while fuel economy won’t be close to that in the F-150, it could give mid-size truck buyers the option of buying a fuel-efficient full-size truck.

Ford hasn’t offered a V-6 option for the F-150 since the 2009 model year. The 3.7-liter is expected to be available before 2012.

The Fusion hybrid sedan took honors for car of the year while the Transit Connect small commercial van was the award-winning truck.

Built in Mexico, the Fusion was a sales winner for Ford in 2009 with a 22 percent increase. The vehicle has won praise for its fit and finish, fuel economy and its looks.

Built from many of the same basic parts as the European Ford Focus, the Transit Connect launched in the United States last year. Ford has said it will move production to the United States from Europe when sales warrant the move.

Critics have called the van a game changer for the commercial vehicle segment because it offers many small businesses the capacity they need for less money and more miles per gallon than a larger, Avon Lake-built E-Series commercial van.

Other nominees for the awards were the Chevrolet Equinox crossover, Buick LaCrosse sedan and the Volkswagen GTI small car. Awards are based on votes by automotive journalists.

Not to mention distracted, which brings me to point No. 2. What Ford is doing is utterly politically incorrect. While lawmakers across the country are passing progressively tighter strictures on what people can do in their cars, Ford is developing technology that makes it easier for drivers to gab on the phone, scan for nearby restaurants and keep up with incoming text messages.

The reaction from safety advocates has been, um, less than enthusiastic. Consider the screech emanating from Common Sense Media …

… a group that focuses on helping families shield children from inappropriate types of entertainment:

Multiple LCD screens, personalized color schemes, browseable phone books, touch screens, song tagging, and the means to transform a car into a mobile internet hub – wow, that’s a virtual carnival in your car. Ford calls their system a “simpler, smarter, safer” way to stay connected while driving, and though it’s an exciting development for wireless technology, it’s clearly a dangerous precedent for young drivers who already admit to being distracted.

Ford executives argue that people are going to be fumbling with their iPods, texting on their BlackBerrys and looking up directions regardless of what carmakers (or policymakers) do.  So by bringing such activities into its Sync system, where they can be controlled by uttering commands or manipulating switches on the steering wheel, Ford is making them less distracting. As Mulally put it in an interview Wednesday, “You don’t want them looking at another device. … We really think you’ll be more focused.”

Obviously, the market will decide how far Ford can go. Some companies are racing in the other direction; in fact, there are several at CES (including, believe it or not, Taser ) showing off technologies that limit what drivers can do behind the wheel. Meanwhile, Ford’s sales numbers say the public is on its side. Derrick Kuzak, group vice president of product development, said Fords equipped with the Sync connectivity technology sell twice as quickly as those that aren’t. And its surveys show that Sync makes people more likely to buy a Ford, and more satisfied with their cars after they drive them home.

So here’s something to ponder. If Ford had taken federal bailout dollars alongside General Motors and Chrysler in 2008 and 2009, would it be free to do things that fly in the face of what policymakers and lobbyists want? Would it be coming out with ever more powerful versions of Sync, or would it be pursuing a technology agenda that’s closer to Washington’s heart — say, by putting its chips on electric cars instead of mobile phones?

A key part of Mulally’s strategy since he took over in 2006 has been to give Ford a reputation for being on the leading edge of technology in cars. Sync certainly helps in that regard. Its strategy of leveraging the connectivity and software of the rapidly innovating mobile phone industry positions Ford to “move with the whole cellphone industry,” as Kuzak put it. Oh and by the way, Ford’s share of the U.S. market climbed to 15.5%, more than a percentage point higher than it was a year ago. That’s a far cry from the mid-20s of a decade ago, but Ford’s heading in a better direction than GM or Chrysler.

Motor Trend reports, “In raw numbers, the Mustang fends off the upstart Camaro by selling 66,623 copies in 2009.”  The Camaro’s April introduction, however, means that “the Mustang had three more months of sales.”  Camaros actually outsold Mustangs every month that both cars were available.  The Challenger was a distant third, with just 22,852 sold.

Autoblog adds, “Early on there was speculation that the Camaro could overtake the Mustang,” but Ford won out thanks to a strong December.  For sold 60 percent more pony cars in December than it had the month before.

GM reported a 5.7 percent drop in light-vehicle deliveries, worse than analysts anticipated, while Chrysler Group LLC’s 3.7 percent decline exceeded estimates. Ford sales soared 33 percent, and Toyota jumped 32 percent.

“People are waking up and realizing the world didn’t end and are starting to return to showrooms,” said Aaron Bragman, a forecaster at IHS Global Insight in Troy, Michigan. “It’s way too early to say the trend is pointing north, but if it continues this quarter, it’s a positive sign.”

A 15 percent increase in December industrywide sales capped automakers’ first quarterly improvement since the last three months of 2006, after October and November totals were little changed. The recession and bankruptcies at the predecessors of Detroit-based GM and Chrysler ravaged 2009 sales.

Honda Motor Co. said U.S. deliveries increased 24 percent, and Nissan Motor Co. rose 18 percent. The results reshuffled the industry rankings in the U.S., with Honda climbing past Auburn Hills, Michigan-based Chrysler and into fourth place for the first time in full-year sales.

Industrywide light-vehicle sales improved to 1.03 million, according to industry researcher Autodata Corp. That equated with a seasonally adjusted annual rate of 11.3 million vehicles, Autodata said. The year-earlier rate was 10.3 million.

GM’s Decline

GM said its December decline was driven chiefly by a 33 percent drop in deliveries to fleet customers and a 55 percent decrease among the Hummer, Pontiac, Saturn and Saab brands that are being shut or sold. Sales rose 2.2 percent for the Chevrolet, Cadillac, GMC and Buick models that GM is keeping.

The biggest U.S. automaker emerged in July from a 40-day, $50 billion, government-backed bankruptcy that gave taxpayers an ownership stake of about 61 percent. GM began repaying some of the $6.7 billion in outstanding government loans last month.

For the year, GM’s U.S. market share fell to 19.9 percent from 22.3 percent as Ford rose to 16.1 percent from 15 percent and Toyota climbed to 17 percent from 16.7 percent, according to Woodcliff Lake, New Jersey-based Autodata.

‘Acceptable Buy’

“Ford is suddenly becoming an acceptable buy for people who it wasn’t before,” said John Wolkonowicz, an IHS Global Insight analyst in Lexington, Massachusetts. “Ford is a cool purchase now, which it didn’t used to be. And that is huge.”

Ford, the only U.S.-based automaker to decline a federal bailout, cited an 83 percent gain for the Fusion and a doubling of Taurus sales.

The shares of the Dearborn, Michigan-based automaker rose 68 cents, or 6.6 percent, to $10.96 at 4 p.m. in New York Stock Exchange composite trading. That was the highest closing price since July 2005.

Industry sales for last year fell 21 percent to 10.4 million units, the fewest since 1982, Autodata said. U.S. sales were 13.2 million in 2008, according to Autodata, after averaging 16.8 million this decade through 2007.

Sales estimates for the U.S.-based automakers represented the average of six analysts surveyed by Bloomberg, and the projections for Japan’s Toyota, Honda and Nissan were issued by Edmunds.com.

The estimates are based on daily selling rates. December had 28 selling days, 2 more than in 2008. Sales comparisons would be about 8 percentage points higher without the adjustment. For example, GM’s adjusted sales decline was 12.4 percent, bigger than the 10.6 percent drop projected by the analysts. Ford’s tally includes the Volvo brand, which the automaker plans to sell.

Asia-based brands topped domestic automakers with 47.4 percent of U.S. market share, compared with 44.2 percent for GM, Ford and Chrysler.

2010 Outlook

Industry sales in 2010 may rise 19 percent to 12.4 million because of the need for new vehicles and improving availability of consumer credit, said Sean McAlinden, chief economist for the Center for Automotive Research in Ann Arbor, Michigan.

“For 2010, I’m leaving my seat belt on because I think volatility is still an element of the new norm,” Ken Czubay, Ford vice president of U.S. marketing sales and service, said on a conference call.

Al Castignetti, Nissan’s vice president of U.S. sales, wouldn’t give a forecast for industry sales growth this year beyond saying that his “personal view is we’re not going to see 10 percent or 15 percent increase.”

“I’m fairly optimistic,” Castignetti said. “The market will get better, credit will get better.”

Chrysler Incentives

Chrysler announced new incentives of no-interest, five-year financing or $3,000 in cash rebates on virtually of its 2010 model-year vehicles. Chief Executive Officer Sergio Marchionne has said repeatedly he wants to move away from incentives because they undermine the value of the brands.

Surging unemployment and tight credit depressed 2009 sales, especially in the first half, when the annual rate didn’t exceed 10 million.

Sales rose in August, spurred by government incentives to turn in older models. Fourth-quarter industry results were little changed heading into December, after a drop of 104 units in October and a gain of 139 in November, according to Autodata.

Automaker Totals

GM said light-vehicle sales in December fell to 207,538 units, while Ford’s deliveries increased to 184,655. Nissan’s sales totaled 73,404, and Honda’s U.S. deliveries were 107,143. Chrysler’s tally was 86,523. Toyota City, Japan-based Toyota said sales were 187,860.

Hyundai Motor Co., South Korea’s largest automaker, said sales rose 41 percent in December to 33,797.

The full-year results showed the toll on the industry from the deepest U.S. economic slump since the Great Depression.

Light-vehicle sales at GM fell 30 percent to 2,071,749, the fewest since 1952, according to data compiled by the trade publication Automotive News. Ford’s 2009 sales fell 15 percent to 1.68 million, while Chrysler tumbled 36 percent, to 931,402. That marked the automaker’s first annual total of fewer than 1 million units since 1963, according to Automotive News.

Toyota said annual sales fell 20 percent 1,770,149. Nissan sales decreased 19 percent for the year, to 770,103 cars and trucks. Honda also declined 19 percent to 1,150,784. Seoul-based Hyundai said U.S. sales rose 8.3 percent to 435,064.

The Mustang is part of a sports car surge in the U.S. car market, driven in part by the introduction of the Chevrolet Camaro SS earlier this year and the Dodge Challenger R/T in 2008. Sales of sporty midsize cars this year rose about 12% through November compared with the same period last year. Sales in most other car categories are down by double-digit percentages; overall car and truck sales dropped about 12% this year, according to J.D. Power and Associates.

The first turn of the key quickly reminded me of why I have been drawn to cars since childhood. While many new vehicles shield the driver from the machinery through push-button transmissions, electronic parking brakes and layers of soundproof padding, the Mustang is mechanical immersion. It starts with the ignition key, which one still has to insert and turn to start the car.

Turning the key elicits a warm, crackling roar from the eight-cylinder engine. Vibrations make their way to the driver’s hands and feet through the steering column and floorboards. The clutch pedal feels heavy but engages smoothly to get the car moving without bucking or lunging. (The Mustang is available with an automatic transmission, but that severely cuts its engaging, fun-to-drive appeal.)

The two-door Mustang feels compact but comfortable, with enough visibility that I didn’t worry about running into things while backing up or driving through tight traffic and crowded parking lots. The Camaro is two inches longer than the Mustang, and the Challenger is almost 10 inches longer — yet their small windows can make drivers feel claustrophobic.

At $27,995, the Mustang is the least expensive of the trio. The Challenger costs $30,860, and the Camaro costs $33,450. But the Mustang has the best-looking interior, with more shapely and defined dashboard and door panels and attractive chrome trim that recalls cars of the 1960s. The Challenger and Camaro have bland, cheap-looking cabins that appear to be made of parts borrowed from other cars. The Challenger and Camaro have fuel economy ratings of 16 miles per gallon in the city and 24 on the highway; the Mustang’s rating is 17 mpg in the city and 24 mpg on the highway.

On the open road, the Mustang feels like a sports car — an old one. It carves corners nicely despite a rather crude suspension that includes a solid rear axle. This setup typically isn’t as sure-footed over rough roads compared with an independent rear suspension that allows each wheel to respond individually to bumps. (Both the Camaro and Challenger have this more advanced suspension design.)

The Mustang’s crudeness will turn off some drivers. It isn’t as polished as buyers may expect of a new car. Its solid axle is hard to excuse on a contemporary car that is supposed to be sporty. Ford says the simpler rear suspension helps cut costs and hasn’t deterred buyers.

The car is heavy at more than 3,500 pounds. Still, it weighs hundreds less than the Challenger and Camaro, and its handling feels lighter — if not nimbler — in comparison. Even though its rear suspension feels slightly unsettled over bumps, it doesn’t keep the Mustang from being fun to drive. Indeed, the car makes back-road driving so enjoyable that I usually wound up looking for longer more twisty routes to my destination.

The Mustang’s manual transmission is a five-speed while most others have six-speed gearboxes. It comes off as quaint and old-fashioned compared with other higher-end cars like BMWs and Audis and even the Challenger, which has a chassis developed from a Mercedes-Benz sedan.

Part of what makes the Mustang rewarding to drive is that it keeps you busy trying to shift, accelerate and apply the brakes smoothly. Doing so makes the most of its engine and the suspension’s capabilities.

If I was shopping for a contemporary muscle car I’d pick the Mustang GT because it strikes the right balance between modern technology and the old-fashioned roughness that makes driving fast, powerful cars feel a bit like riding a horse. The Camaro and Challenger feel more modern and refined, with smoother rides and less of the roar and rumble that make the Mustang stand out. They are technically more powerful, but they feel tame and reserved compared with the snarling, boisterous Mustang.

Drivers who want hot-rod looks with the ride and comfort of a family sedan should test-drive the Camaro and Challenger. They might skip the Mustang because while it is a treat for drivers, its smaller back seat and rougher ride can be less pleasant for passengers. But if you believe piloting a proper muscle car should be exciting enough to remind drivers of their earliest thrills behind the wheel, the Mustang delivers like no other car available today.

General Motors and Chrysler fought to stay alive, and only did so thanks to support from taxpayers.

The U.S. government imposed some conditions in exchange for its support. The result was the ouster of GM CEO Rick Wagoner and his successor, Fritz Henderson and Chrysler being taken over by Italian automaker Fiat.

But the companies survived. Ford earned plaudits for avoiding government involvement and for producing vehicles like the Ford Fusion.

The changes meant the end of brands like General Motors’ Pontiac and Saturn, and Saab is looking for a New Year’s miracle for salvation. More than a thousand dealers closed, mostly those selling Chrysler and GM vehicles.

While there was plenty of news to report in 2009, no one in the auto industry wants a repeat this year.

The seasonally adjusted annual rate may be 11.1 million cars and light trucks, according to the average estimate of eight analysts in a Bloomberg survey. That would be up from 10.3 million in December 2008 and 10.9 million in November, marking the second straight monthly gain, according to Bloomberg data.

The year may end with 10.4 million new cars and light trucks sold, the fewest since 1982, when the country had one- quarter fewer adults. Ford Motor Co. gained further market share, analysts said, building on its increasing reputation for high quality and good will for avoiding a government bailout.

“We’re looking at a slow, fragile recovery in 2010,” said Mirko Mikelic, senior portfolio manager at Fifth Third Asset Management in Grand Rapids, Michigan, which manages $19 billion in assets. “It will be a slow slog. With the wind down of brands, GM’s going to be paying the price. And Ford will benefit.”

GM, based in Detroit, is shedding Saab, Saturn, Pontiac and Hummer to concentrate on its four remaining U.S. brands: Chevrolet, Cadillac, Buick and GMC.

In 1982, the U.S. had 177 million driving-age adults, 36 percent fewer than now, said Sean McAlinden, chief economist for the Center for Automotive Research in Ann Arbor, Michigan. At the time, 59 new vehicles were sold per 1,000 adults, he said, compared with 42 this year.

“That would make it a worse recession than 1980-82” and indicate significant pent-up demand, he said.

Increase Forecast

Sales in 2010 may rise 19 percent to 12.4 million because of the need for new vehicles and improving availability of consumer credit, McAlinden said. Other preliminary forecasts for industrywide sales range from Chrysler’s outlook of about 10.8 million to Ford’s 12.3 million.

Chrysler declined to elaborate on its 2010 forecast, issued last month as part of its five-year plan.

U.S. sales totaled 13.2 million in 2008, according to Autodata Corp., after averaging 16.8 million this decade through 2007.

Surging unemployment and tight credit depressed auto sales, particularly in the first half of the year, when the annual rate didn’t exceed 10 million. The tumult in the economy led to government-backed bankruptcies that produced Auburn Hills, Michigan-based Chrysler Group LLC on June 10 and General Motors Co. on July 10.

‘Clunker’ Effect

Manufacturers, dealers and investors use the sales rate to compare monthly totals by taking into account seasonal buying patterns. February’s 9.11 million pace was the year’s lowest, and the highest was August’s 14.1 million, fueled by the Transportation Department’s “cash for clunkers” program.

During the one-month effort, the U.S. contributed as much as $4,500 toward the trade-in of an older model for a more efficient new one, boosting sales in July and August.

Rising vehicle sales in November and December, without federal support, add to signs that the U.S. economy is improving.

Ford Growing

Ford, based in Dearborn, Michigan, may report a 13 percent gain, while GM may say its sales this month fell 10.6 percent, based on the average estimates of 6 analysts surveyed by Bloomberg. Chrysler’s sales probably fell 13.9 percent, according to the analysts.

Ford fell 3 cents to $9.96 at 10:28 a.m. in New York Stock Exchange composite trading. The shares have more than quadrupled this year.

The estimates are based on daily selling rates. December had 28 selling days, 2 more than in 2008. Without the adjustment, sales comparisons will be about 8 percent higher. Tom Henderson, a GM spokesman, said he wouldn’t speculate on December’s results.

Among Japanese automakers, Toyota Motor Corp. sales gained 21 percent, Honda Motor Co.’s gained 7.8 percent, and Nissan Motor Co.’s rose 4.9 percent, according to estimates by Edmunds.com.

Toyota’s Decline

Toyota, which surpassed GM as the world’s largest automaker in 2008, experienced a 23.8 percent U.S. sales decline through November as President Akio Toyoda apologized for the company straying from its customer focus and for its biggest U.S. recall because of loose floor mats.

Toyota was probably overtaken by Germany’s Volkswagen AG last year in terms of global vehicle sales. VW’s U.S. share rose to 2.9 percent through November, up from 2.3 percent a year earlier.

Hyundai Motor Co., South Korea’s largest automaker, may report a 52.1 percent increase, according to Edmunds.com, a market-research firm in Santa Monica, California.

George Pipas, Ford’s chief sales analyst, said the automaker will report a full-year gain in U.S. market share in 2009 for the first time since 1995.

“It appears December will be the strongest sales month this year, except for August,” Pipas said. “That’s a nice way to close out 2009 and it’s a positive sign of higher levels of interest and buying next year.”

The following table shows estimates for car and light-truck sales in the U.S. Estimates for companies are a percentage change from December 2008. Forecasts for the seasonally adjusted annual rate, or SAAR, are in millions of vehicles.

The estimates are based on daily selling rates. December had 28 selling days, 2 more than in 2008.

But these oddities are nearly endearing in one of the smartest and most practical vehicles for anyone — including a small business owner, camping enthusiast or trend-eschewing individualist — looking for something different to drive.

The front-wheel drive Transit Connect has been sold in 55 countries by Ford Motor Co. but is only coming to the States this model year as something of an experiment in downsized commercial vans.

Buyers wont find luxury accouterments. But they will get at least double the cargo room of other small, boxy, four-cylinder-powered vehicles that frequently do duty as small business vehicles, such as the Scion xB and Chevrolet HHR panel wagon.

Buyers also find on the Transit Connect window sticker a government rating of 22 miles per gallon in city driving and 25 mpg on the highway, which is about double that for a traditional, large, Ford delivery van.

Best of all, the Transit Connect is affordable with a starting

manufacturers suggested retail price, including destination charge, of $21,830 for a base, five-passenger model with 136-horsepower, four-cylinder engine and automatic transmission.

A cargo version of the Transit Connect, with no rear seats, has a starting retail price of $21,475.

There arent directly comparable competitors here.

For example, the 2010 Scion xB comes from Japan and has a starting retail price of $16,420, while Chevys American-bred HHR panel wagon has a starting price of $19,350. But neither has anywhere near the 135.3 cubic feet of cargo room behind the front seats that the Transit Connect offers.

In fact, even large sport utility vehicles dont have this much cargo space. The Chevy Tahoe tops out at 108.9 cubic feet with third row seats removed and second row folded.

The Transit Connect has van-like side doors for the second row of seats that slide open and closed. So, it might compare with small passenger vans like the 2010 Mazda5 that starts at $18,745. But the six-passenger Mazda5 with three rows of seats and 5-foot-3-inch height seems conventional vis-a-vis the 6-foot-6-inch-tall Transit Connect.

The Transit Connect is based on a special version of the platform of the Ford Fiesta small car thats sold in Europe, and it is used for many commercial purposes overseas, including delivery vans and ambulances.

But in the US, the possibilities are endless among business owners looking to reduce gasoline use, camping fans who want to downsize, even drivers suffering from disabilities who need to carry wheelchairs and medical equipment.

Part of the appeal of this new vehicle is how easy it is to get in and out. At 5 feet 4, I just turned and sat onto the drivers seat cushion. Theres no climb up or dropping down into a low-riding car seat. The tester was a passenger van version with seats for five, so I and my passengers rode with decent views out front and to the side.

The two cargo-style doors at the back meant I didnt have one large window to look out of at the back, however. So I was glad to have the optional reverse parking sensors back there to help me know when I got too close to obstacles while I was backing up.

Seats, dashboard arrangement and door trim were all no-nonsense and functional in the test Transit Connect. There was nothing fancy, and the center console area didnt even have covered storage.

I noticed how tall the side windows are, and I had to open the side windows to reach out and manually wipe away condensation that had formed overnight on the outside mirror and stationary part of the side windows.

Theres just one engine — a hardworking, 2-liter, double overhead cam, Duratec four cylinder generating 136 horsepower and 128 foot-pounds of torque at 4,750 rpm. Even when the vehicle was empty, the Transit Connect didnt rocket around town. Rather, it moved with a hint of spunk. With more people and cargo, the vehicles spunk was replaced with a more purposeful personality.

I readily heard the engine at work as well as road noises from the 15-inch tires on pavement. Sometimes, the sounds seemed to reverberate throughout the cavernous interior, which was a unique experience.

But I loved the low load floor at the back of the Transit Connect, not to mention how the two rear doors were hinged so they could swing all the way back and stay against the sides of the vehicle and out of the way. This is so much nicer than ducking under a tailgate door or walking around a single, side-opening rear cargo door.

The impressively tall ceiling meant even a 6-footer could darn near stand up inside in the cargo area, and the utilitarian floor material makes for easy cleanup.

I didnt feel as if I had the latest technology as I drove the Transit Connect. The ride was adequate but not refined. For example, the rear suspension uses uncomplicated leaf springs and

solid axle. And there didnt seem to be a lot of sound insulation as wind noise came on noticeably when the Transit Connect hit highway speeds.

Unusual options complete the package. For $1,395, for example, a

buyer can add an on-board computer that monitors a drivers speed, idle time and vehicle location — things a business owner might want to track.

The system—which calls for buying stocks at thresholds of 10% declines, and selling on 25% increases—has worked remarkably well during the financial crisis and its aftermath. Still, success poses its own problems. Investing is about the future. Once we toast our good fortune, there are decisions to be made. It’s easy to develop an emotional attachment to stocks that have performed so well. So I’ve taken a look at two of my most successful recommendations this past year with this question in mind: What to do now?

• Ford Motor

My belief in the potential of the U.S. auto industry, and Ford in particular, was sorely tested in recent years. And yet I’ve always felt that with the right leadership and the right product, a U.S. auto maker can again thrive. Even in the darkest days of near bankruptcy and government bailouts of General Motors and Chrysler, I believed Ford could be that company. My conviction was strengthened last spring at the New York auto show, where I examined the Ford lineup, interviewed customers and test-drove an Escape hybrid. This modicum of homework paid off. Ford shares hit $1.50 in February, and were well under $5 when that column ran in April. This week, they were above $10 for the first time since August 2005.

Now the question is, can things get any better for Ford? Especially with a resurgent GM poised to mount a government-aided counter attack and Toyota Motor regaining its footing after stumbling?

I think the answer is yes. Ford’s recent market-share gains give it enviable momentum. The company’s new product lineup remains impressive. Its gamble to reject government aid and maintain its independence gave it an opportunity to transform its brand. When I talk to Ford buyers now, I find they’re proud of their vehicles. When was the last time you could say that about a U.S. car company? My recommendation: buy. I’ll deliver an update after this year’s auto show.

The Ford Motor Company is reporting the sale of 31,000 hybrids through November, with hybrid sales up 67 percent from 2008. This trend reflects serious consumer interest in American-made hybrid gas-electric vehicles, as Ford’s numbers fly in the face of overall hybrid industry sales, which have slumped by 11 percent over the same period of time.  The Fusion gets 41 mpg in the city, 36 mpg on the highway and was rated one of the “10 Best” cars for 2010 by Car and Driver. Introduced in March of this year, it now represents 45 percent of all Ford hybrid sales for 2009.

“Hybrid customers increasingly are considering Ford,” said George Pipas, Ford sales analyst, in a statement.  ”And we are seeing a growing number of conquest sales, many of them from customers coming from import brands, mostly Toyota and Honda.” He adds that Ford’s hybrid technology is introducing them to a whole new community of customers who might have otherwise never visited a Ford showroom–i.e., people who want a reliable, fuel-efficient car for the 21st century.

Ford said the HD Radio technology provides “crystal clear radio sound” and it will be factory-installed in some vehicles next year. The technology captures free digital radio broadcasts and eliminates much of the static, fadeout, and other problems associated with traditional analog radio signals.

The company noted that the new technology provides FM audio comparable to near-CD quality and AM audio that is as good as traditional FM broadcasts.

“iTunes Tagging and HD Radio technology are strong new additions to the growing collection of Ford convenience features and technology,” said Mark Fields, president of Ford Americas, in a statement. The automotive firm forged a deal with Opera Software earlier this year in which Opera’s browser will be preloaded on the Ford Work Solutions in-dash computer. The device has a 6.5-inch touchscreen as well as a cellular broadband connection. Other features include a battery-powered printer, a CD slot, and a wireless keyboard and mouse.

The new Ford conveniences are aimed at music-loving drivers. In addition to the iTunes Tagging feature, Ford vehicles will offer HD Radio technology, SIRIUS Satellite Radio, and Internet radio accessible through Bluetooth-streaming capability on smartphones. Ford noted that more than 2,000 U.S. radio stations currently offer digital HD Radio sound.

The iTunes Tagging feature allows drivers to save song information in the car radio’s memory by simply pushing the “Tag” button on the radio display. The song information is stored for later access from an iPhone, iPod, or other device.

After a sluggish year for automakers, Ford is in the news with its 2010 Ford Taurus. The Tauras has earned the U.S. government’s top five-star ratings for driver and passenger in front and side crash tests. The 2010 Ford Taurus has earned top five-star crash ratings from the National Highway Traffic Safety Administration (NHTSA). The Ford Taurus has always been a strong seller for Ford since its debut in 1986.

The new Taurus has an advanced crash safety structure, a standard
group of advanced restraint and air bag technologies. The 2010 Taurus has advanced collision avoidance technologies, including radar-enabled advanced collision warning system and Cross Traffic Alert that warns drivers of hard-to-see parking lot traffic.

According to Ford Taurus’ Marketing Manager Pei-Wen Hsu, the new Taurus is selling faster than its key competitors in the full-size segment – Toyota Avalon, Chevrolet Impala, Buick LaCrosse and Chrysler 300 – recording double-digit percentage with year-over-year growth.

Originally introduced in the 1986 model year, the Ford Taurus has remained in near continuous production for more than two decades, making it the fourth oldest nameplate that is currently sold in the North American Ford lineup.

The new 2010 Taurus features some of the industry’s first side air bags that use pressure pulses from a side impact to deploy up to 30 percent faster than traditional air bags with acceleration-based sensors.

Pressure-based sensors more accurately measure crash severity to better differentiate between a potentially serious air bag-deployable crash and a less serious accident that would not require air bag protection.

The new Taurus features a uniue feature called MyKey(TM), which helps parents encourage their teens to drive safer with top speed and audio limits. It also has a “no belts, no tunes” feature that mutes the audio system if front seat belts are not buckled.

The new safety features will certainly make the 2010 Ford Taurus a top choice among consumers who are looking for a reasonably priced sedan with top notch safety ratings.

A Mustang version with the 5-liter V-8 will be available in 2010’s second quarter, according to the Dearborn, Michigan-based automaker. That engine size had been retired in 1995 after three decades of use in the car, Ford said in a statement today.

Ford, in a rivalry that dates to the late 1960s, is adding an engine with 412 horsepower, 31 percent more than the current 4.6-liter Mustang V-8. The Camaro, with a 426-horsepower V-8, debuted in April and has outsold the Ford model each month since June. GM said that’s given it a chance to wrest away the U.S. sports-car annual sales crown for the first time since 1986.

“This is the next salvo in the Mustang-Camaro war that’s been going on for 42 years,” said John Wolkonowicz, an auto analyst at IHS Global Insight in Lexington, Massachusetts. “Ford needed to do this.”

The Mustang with the new V-8 will be a 2011 model and will be shown at next month’s Detroit auto show. Ford also will offer a new Mustang V-6 that generates 305 horsepower, 1 more than the comparable Camaro engine.

Ford hasn’t announced prices for the new Mustangs. The current V-6 model starts at $20,995, while the V-8 GT version begins at $27,995.

Fuel Economy

Ford said each new engine is more fuel-efficient than the equivalent Camaro offering.

The new Mustang V-6 will get 30 miles per gallon of gasoline in highway driving and the V-8 will get 25 mpg, the automaker said. The Camaro V-6 model, which begins at $22,680, gets 29 mpg on the highway, and the V-8 version, with a starting price of $30,745, is rated at 24 mpg, according to Edmunds.com, a research firm in Santa Monica, California.

Sports-car buyers are more interested in performance and style than fuel economy, said John Fitzpatrick, marketing manager for the Camaro.

GM plans to introduce a Camaro convertible at auto shows next year and begin selling it in early 2011, with the expectation that the version may eventually account for a third of the car’s sales, he said.

The Detroit-based automaker revived the Camaro this year after halting production in 2002. GM sold 6,867 of the cars last month in the U.S., while Ford sold 3,627 Mustangs.

“We didn’t realize we would dominate like we have, gaining 40 percent of the segment,” Fitzpatrick said in an interview.

‘Initial Glow’

Ford global marketing chief Jim Farley said Camaro is ahead in sales for now because of pent-up demand from Chevy loyalists,

“You’ve got to judge the success of a sports car after everyone who wanted one in the first 18 months is gone and the initial glow has faded,” he said. “We never left the market, so our opportunity is different.”

The Camaro has taken the sales lead in part because of more modern styling, said Wolkonowicz, the Global Insight analyst. He said he expects the GM model to keep outselling the Mustang next year, by a narrower margin.

“The Mustang isn’t as fresh and new,” Wolkonowicz said. “The Camaro makes a stronger visual statement.”

The competition helps the image of both automakers, even though sports cars are only 2 percent of total U.S. auto sales, Wolkonowicz said.

“This brings back the battle for bragging rights,” he said. “This is what the Ford and Chevy brands are built on.”

Ford rose 11 cents to $10.24 at 9:38 a.m. in New York Stock Exchange composite trading. Ford’s $10.13 close on Dec. 24 was its highest since Sept. 7, 2005.

Shares of Ford have been consolidating for the last four weeks at the top end of the range, creating a well defined base that resulted in short term support for investors to get into a bullish position with Ford.

Ford Motor Company has been able to survive the bug storm that hit the auto industry during this recession, under the great leadership of its CEO Alan Mulally, Ford has been able to consistently add market share from both General Motors and the struggling Chrysler.

This trading idea was highlighted last week, when Ford was trading near support.

Investors that want to start a position in Ford can establish a tiered approach with a small position and then add to the position if the stock breaks $9.14. The other approach is to wait for Ford to break resistance and make a new 52-week high.

“November was another month with outstanding volume gains,” said Roelant de Waard, Ford of Europe’s vice president for sales.

“In November, 63% of our car sales were to retail customers, 13 percentage points up on last year,” he noted. Retail sales are usually more lucrative for automakers than fleet sales.

De Ward said 77% of Fiesta, 74% of Ka, 73% of Kuga and 69% of Fusion cars were sold to retail customers last month.

The November results mark Ford’s sixth consecutive monthly sales increase year-on-year. Market share was down slightly by 0.1 percentage points at 8.7% in November, but up 0.4 percentage points year-to-date at 9.1%, which according to the U.S. automaker is the highest market share in Europe since 1999.

In the January-to-November period, Ford’s sales in Europe were down 1.4% compared with the same period last year at 1.33 million, reflecting the industry’s woes in the first half of the year.

Ford’s three top-selling vehicles in November were the compact Fiesta with 38, 900 cars, followed by the Focus with 22,700 cars and the Transit commercial vehicle, which accounted for 9,100 sales last month.

Since its launch one year ago, around 540,000 vehicles of the new-generation Fiesta have been sold worldwide. Ford plans to bring this car to the U.S and several markets in the Asia-Pacific region in 2010.

Due to its line-up of small and compact cars, Ford’s European unit was among the biggest beneficiaries of scrapping incentive schemes in the region. But as a result it faces a relatively large exposure to the anticipated market slump after these schemes expired.

Earlier this month, Ford of Europe’s Chief Executive John Fleming said the auto market should recover at some point in 2010 or 2011, but he was reluctant to make a concrete forecast for next year citing a weak underlying economy.

Quick Lane is Ford’s service center brand and is operated by Ford, Lincoln and Mercury auto dealers but doesn’t carry the Ford branding or logo. Ford first established Quick Lane in 1997 and currently has 553 locations in its network.

Today, Ford said it plans to open about 25 new locations by the end of this month and expects to reach the 600 mark before June 30. Ford also opened a location in Singapore earlier this year and a location in Costa Rica this fall.

“We’ve found that Quick Lane has been very advantageous to the growth and service to our customers and dealers,” said Frederiek Toney, vice president of Ford’s customer service division.

Quick Lane offers routine vehicle maintenance such as oil and filter changes, and light repair services such as brake repair and tire replacement.

Toney also said the annual revenue the Quick Lane franchises is expected to top $450 million this year, a 4% increase from 2008. And while about 80% of the locations are at or beside Ford, Lincoln or Mercury dealerships about 25% of the customers that go to a Quick Lane service center are non-Ford customers.

“It brings in incremental revenue to our dealers, and it expands our ability to provide service to customers who might not otherwise come to us,” Toney said.

Instead, you’ll place your “reservation” with a “Fiesta reservations consultant” through a website.  Ford says 1,000 have done so already, lured by the $13,320 starting price and its 40 mile-per-gallon gas mileage on the highway.  And it says its grass-roots promotion in which it put a bunch of the European versions of the car in the hands of young, hip and blogging consumers created the buzz that is leading to sales of the car sight unseen:

“The Fiesta Movement created an unparalleled awareness and interest for the Fiesta months ahead of it going on sale next summer,” said Lew Echlin, car marketing communications manager for Ford. “Fiesta Reservations provides these prospective customers a customized experience for researching, reserving and following their Fiesta.”

Says Ford:

The Fiesta Movement helped generate momentum for Fiesta and resulted in more than 80,000 hand-raisers leading up to the car’s reveal at the Los Angeles Auto Show. The Fiesta Reservations program will hold the interest of potential customers, and give them a VIP experience in conjunction with Ford dealers.

Through the program, consumers who reserve a new Fiesta will receive prioritized order handling with automatic build updates, their personal Fiesta Reservations consultant, and SYNC and Premium Sound package, worth $595, at no charge once their vehicle is delivered. With a vehicle purchase, participants will be able to share their vehicle information through social media sites like Facebook.

The moves, which would also include a commitment to manufacture a new hybrid and plug-in hybrid in the state, would consolidate much of the automaker’s electric vehicle research, development, engineering and production in Michigan. The company would also commit to in-sourcing production of a new hybrid and plug-in hybrid scheduled for release in 2012, likely at its Wayne assembly plant.

Nancy Gioia, Ford’s director of global electrification programs, was discussing the request with state lawmakers Tuesday and Wednesday. Gov. Jennifer Granholm supports Ford’s proposal, The Detroit News reports.

The proposed moves mirror those being made by cross-town rival General Motors Co., which is aiming to make the Chevrolet Volt the first plug-in hybrid-electric vehicle produced in Michigan and has already announced plans to assemble its own battery packs at a plant under construction in Wayne County.

Specifically, Ford is asking for $85 million in tax credits from (the state’s battery assembly tax-credit) program through 2014, and an additional $35 million beyond 2014 if the lithium-ion cells used in the battery packs are manufactured in Michigan.The battery packs Ford uses in its hybrid cars and trucks are designed and produced by Delphi Corp. in Mexico. But Gioia said engineering and assembling these packs is a “critical core competency” that Ford needs to move in-house.

“It’s a critical core competency to delivering the vehicle function, its DNA, its durability, its reliability and for getting every joule of energy out of the vehicle,” she said, adding that automakers are struggling to keep up with the rapid advances in lithium-ion cell technology.
It’s difficult to envision this not sailing through a Legislature eager to show cranky constituents it’s doing something about creating jobs.

Bill Ford, a co-chair of June’s National Summit, plans to meet Monday with U.S. Commerce Secretary Gary Locke. Locke spoke at the gathering of business, government and academic leaders.

The announcement was made Tuesday at a meeting of the Detroit Economic Club, which organized the summit. Joining Ford will be economic club CEO Beth Chappell and Tom Dekar, a vice chairman of accounting and consulting firm Deloitte LLP. Deloitte helped create the conference.

Chappell said the findings also would be presented at an upcoming economic club meeting.

Ford has developed vehicles in conjunction with Mazda for years, beginning with an automatic transmission venture in 1969, but the two companies will now begin developing vehicles separately.

“For a lot of designing and engineering we’re going to be focused on Ford,” Mark Fields, Ford’s president for the Americas, told Bloomberg. “Our efforts will be focused on the Ford system, as opposed to relying on others such as Mazda.”

Currently, Ford has three models based on Mazda vehicles. The Ford Fiesta, which debuted in North American trim at the Los Angeles Auto Show, is based on the Mazda2, which was also at the L.A. show. Mazda’s Mazda6 underpins the award-winning Ford Fusion family, and the European Ford Focus shares its chassis with the Mazda3. Even though the two companies are going their separate ways on major development, Ford said it will still share some components with Mazda.

The news of Ford’s decision to further separate its development from Mazda’s comes after the automaker decreased its share in the Japanese company from 33.4 percent to 11 percent. Ford remains Mazda’s largest shareholder and meets regularly with Mazda’s top executives.

Mazda CEO Takashi Yamanouchi did not rule out the possibility of the two companies working together on development again in the future. “Right now, it seems both companies are going their separate ways, but in the future of both coming together again. We’re sure there will come a time when we need each other’s technology,” Yamanouchi told Bloomberg.

The investment would create up to 1,000 new jobs at a plant yet to be named.

In return, Ford is asking the state of Michigan for tax breaks, said Nancy Gioia, Ford’s director of global electrification.

“We are very optimistic; we think Michigan has a fantastic vision and we received a lot of positive comments,” Gioia said today after testifying in front of the senate’s commerce committee in Lansing.

However, Gioia said Ford is considering several other sites around the world, including Kentucky.

Previously, Ford announced plans to introduce a plug-in electric version of its Transit Connect commercial van in 2010, a battery electric Ford Focus compact car in 2011, as well as a next generation hybrid vehicle and a plug-in hybrid vehicle by 2012.

Ford declined to say where in Michigan the assembly of the next generation hybrid and plug-in hybrid vehicles might occur but has said they would be built off the company’s compact car platform.

Ford plans to begin building a new version of the Ford Focus compact car late next year at its Michigan Assembly Plant in Wayne and a battery electric version of the Focus at that plant in 2011.

Gioia also said Ford has decided to bring the assembly of lithium ion battery packs and battery pack development in-house and is considering Michigan for that work as well.

Ford currently buys battery packs made by Delphi Corp. in Mexico. Ford currently sells several hybrids, including the Escape SUV and the Fusion and Mercury Milan hybrid sedans introduced earlier this year.

Snow is forecast Friday evening in Western Washington. The forecaster at the National Weather Service office in Seattle says it’s too soon to estimate amounts. Snow should give way to rain over the weekend in Western Washington.

The chance of snow continues through the weekend in colder Eastern Washington.

The low temperatures Tuesday morning were in single digits in many areas of the state. Some reports from 6 a.m.: Pullman 0, Spokane 2, Pasco 0, Wenatchee 5, Vancouver 15, Kelso-Longview 9, Chehalis 9, Olympia 7, Seattle 23, Bellingham 19.

In all, only 19 cars and eight SUVs garnered the highest safety rating in the closely watched survey conducted by the Insurance Institute for Highway Safety. That’s down from 94 total a year ago. The difference? A new test of roof strength in rollovers.

Ford and its Volvo subsidiary led the way with the most vehicles ranking, including the new Ford Taurus sedan and the Volvo XC90 SUV.

The popular Ford Fusion fell off the list along with the Honda Accord because their roofs didn’t earn “good” marks.

“Honda and Ford would have to make only minor changes to achieve good ratings for roof strength, as the Accord and Fusion just missed the mark,” institute President Adrian Lund said.

Toyota also came close with its Camry sedan, but its seats and head restraints were rated only “marginal” against whiplash injury. A year ago, before the bar was raised, Toyota had 11 winners in the study. Subaru was the only manufacturer that placed a model in all four vehicle classes, with a total of five winners. Volkswagen/Audi also had five, while Chrysler earned four. General Motors made the list with the Buick LaCrosse and Chevy Malibu.

Two new small cars, the Nissan Cube and Kia Soul, also ranked.

“In safety terms, we’ve come very far, very fast in just the past decade,” Lund said, adding that manufacturers have stepped up safety efforts since the institute began its testing in 1992. Very few models, he noted, made the list when front and side impacts were first measured. Now, very few miss.

Lund sees the same advances in the rollover testing. “Now that roof strength is a priority, we think manufacturers will move quickly to bolster roofs to do well in our roof-strength test,” he said, expecting more Top Safety Picks for 2011.

The pricing of the Fiesta, due out late next year, is crucial to Ford, as the auto maker bets that it can win new, younger, consumers with its small car.

“Although we have a starting price just below Toyota Yaris, we will offer a significant amount of additional equipment than consumers can get on the Yaris or the Honda Fit,” said Paul Anderson, Ford’s car marketing launch manager.

Ford is planning to offer a variety of features and feature packages that will include everything from heated seats to interior trim colors.

Ford’s European Fiesta has been a wild success, and is celebrated among auto enthusiasts.  Now following a surprise profit, Ford looks to continue its newfound success.

With the 2011 Fiesta for North America, Ford’s basic formula is the same — take a car with attractive interior and exterior and heap on performance, a fuel economy that bests competitors, and loads of high-tech standard features.  The vehicle was previewed at the 2009 LA Auto Show.

Beginning with the exterior, the first thing you notice is how strikingly similar it is to the Euro Fiesta, despite the fact that it only has 60 percent of its parts in common with its Euro twin.  About the only changes to the exterior are the removal of the fog lights, which have been replaced with a strip of chrome-accented LED lamps, and the removal of Euro-style grill, which is replaced by a similar colored grill in the hatchback version and with a metal grill in the standard version.  Both alterations have drawn some minor criticism, as can be expected when one modifies a beloved design, but overall the response to the familiar exterior is strong.

Turning to the interior, the Fiesta can be had with optional leather seats.  Also, to suit American demands, leg room has been increased from the Euro version, along with the addition of a knee airbag.

The car is also packed with loads of consumer electronics.  It predictably features Ford’s popular SYNC system (optional), powered by Microsoft.  It comes push button start, a 4-inch LCD display, and an MP3 player auxiliary port.  It is also the only car in its class to feature automatic climate control.  The car also features high-tech mirrors, standard, which have surface heating and turn signal indicators.  More typical fare — a moon roof and power seats come as optional features.

In terms of power, the Fiesta’s 1.6-liter four-cylinder with 119 horsepower and 109 ft.-lbs. of torque provides ample thrust to drive the light vehicle.  You can get it with one of two attractive transmissions — a five-speed manual transmission or Ford’s new six-speed PowerShift electronic dual clutch automatic transmission.

Ford’s PowerShift is reportedly 22 lb lighter and more compact that a typical six-speed and offers an 8-10 percent fuel economy savings versus a four-speed transmission.  The dual clutch transmission should be more than ready when the American Fiesta gets an Eco-Boost engine as it is over-engineered to currently handle up to 185 lb-ft of twist.

Ford is tweaking the suspension, but promises to retain the same “fun” factor as the Euro model.  Its chief objective is to minimize the harshness when riding over rough surfaces.  Ford also has slapped on Electronic Power Assisted Steering, also featured in the new Mustang.  Ford insists that its not overdoing it, and that the feature will be unobtrusive.

The fuel economy on the Fiesta, like that of the new 30 mpg Mustang, is another show-stopper for Ford.  It proves that gasoline engines can be fuel effecient, as it gets 40 mpg highway, over 3 mpg better than the closest competitors in its class.  It also gets 30 mpg city.

That outstanding fuel sipping doesn’t come at the expense of safety, though.  The car is brimming with airbags, with side curtain airbags and lower bags to protect your hips, in addition to traditional front airbags.  It also features 55 percent high strength steel, including Boron steel-reinforced door crossbars and at the A-pillar to B-pillar.

The new 3.7-liter engine generates 305 horsepower and can travel 31 miles per gallon of fuel in highway driving, said Barb Samardzich, Ford’s vice president of powertrain engineering. The current 4-liter V-6 creates 210 horsepower. That engine gets 26 mpg on the highway, according to research firm Edmunds.com.

General Motors Co.’s Chevrolet Camaro debuted in April and has outsold the Mustang in the U.S. each month since June. The Camaro may take the lead in annual sales next year, said Jeff Schuster, an analyst at researcher J.D. Power & Associates.

“We’re looking at an old-fashioned, heavyweight battle,” said Schuster, who is based in Southfield, Michigan. “It will be a real close fight.”

Ford is introducing the 2011 Mustang on Dec. 2 at the Los Angeles Auto Show. The automaker expects the more efficient engine to increase Mustang sales, because fuel economy is why a third of potential buyers reject the car, said Steve Ling, Ford’s car marketing director, at a Nov. 10 briefing.

“Now I can say we have totally addressed that,” he said at the event in Dearborn, Michigan, where Ford is based.

The Mustang-Camaro competition is mostly about image and bragging rights, because sports cars make up just 2 percent of U.S. auto sales.

Going After Camaro

Even so, the Mustang has been in Ford’s lineup since 1964 and is an important model that the company intends to defend from new competition, Ling said. He attributed Camaro’s sales success to pent-up demand since GM revived the car after halting production in 2002.

“We’re aiming to go after the Camaro,” said Dave Pericak, the Mustang’s chief engineer.

The new Mustang engine puts it just ahead of the 304 horsepower for the Camaro’s 3.6-liter V-6. Ford’s fuel- economy estimate of 19 mpg in city driving and 30 on the highway for the Mustang V-6 compares with 17 mpg and 29 mpg for the GM model, according to Edmunds.com, which is based in Santa Monica, California.

The 2011 Mustang with the new V-6 will start sales in next year’s first half. Ford hasn’t yet revealed its price, Samardzich said. The 2010 V-6 Mustang starts at $20,995, while a Camaro with that engine size begins at $22,680, according to the companies’ Web sites.

GM said the majority of Camaros are sold with V-8 engines that get 426 horsepower, more than the Mustang’s 315-horsepower V-8. Ford said Mustang sales are divided evenly between the larger and smaller engines.

The V-8 Camaro starts at $30,745, while the Mustang GT with a V-8 begins at $30,995, according to Edmunds.com.

“We’re going to do everything we can to stay on top,” said Adam Denison, a spokesman for GM’s Chevrolet. “This car does get good mileage. It’s a budget-friendly sports car.”

The Blue Oval is joining the University of Detroit Mercy to retrain automotive engineers to face the electric era. The Advanced Electric Vehicle Program offers graduate-level courses emphasizing electric and hybrid drivetrain technology and components like power control and energy management systems.

“The era of electric vehicles is here and it’s critical that we meet this technology challenge by retraining our engineers with a broad range of new skills and competencies,” said Derrick Kuzak, vice president of global product development.

Ford already offers the Fusion Hybrid and Escape Hybrids, and it promises to have an all-electric Focus on the road by 2011 and a plug-in hybrid by 2012. The company says between 10 and 25 percent of its vehicles will be electrified — hybrids, plug-ins or battery electrics — by 2020.

The Advanced Electric Vehicle Program will be open to automotive engineers as well as engineers from defense industries.

“It’s a 25-year contract,” Ford gleefully told the Free Press in March.

By all accounts, Mulally, known for his laser-like focus and folksy, upbeat attitude, also enjoys working at Ford.

After three years of hard work, Mulally’s “One Ford” — as he likes to call it — has posted a profit of $1.83 billion through Sept. 30 and earned respect for building stylish, high-tech and high-quality cars.

“I really love it here,” Mulally said in October.

But at 64, Mulally isn’t likely to stay at Ford for decades.

Many have suggested that Mulally, who was passed over for the CEO job at Boeing Co. before joining Ford in 2006, should be rehired to fix the airline company where he worked for 37 years.

Boeing has repeatedly delayed the launch of its 787 Dreamliner and posted a recent quarterly loss.

What’s more, Mulally has been dedicated to grooming future leaders at Ford, which was accused of having a light bench before he arrived.

Mark Fields, 48, Ford’s president of the Americas, is widely viewed as the front-runner to succeed Mulally.

But Ford has other quality candidates, including Jim Farley, the former Toyota executive leading Ford’s global marketing and operations in Canada, Mexico and South America, and Joe Hinrichs, who is set to run Ford’s Asia division starting Dec. 1.

The men who would run Ford

Fields, Ford’s president of the Americas, is viewed as the front-runner to succeed Mulally, experts say Ford has developed a talented roster of executives that could be ready for the top leadership position soon.

Mulally, 64, who has gained the respect of the auto industry since arriving at Ford in 2006, has shown no signs that he expects to leave soon — and virtually nobody wants to see him go.

“We’d like Mr. Mulally to stick around as long as he would like,” said Beau Boeckmann, vice president of California auto dealer Galpin Motors, one of the largest Ford dealers in the nation. “He’s doing just a spectacular job.”

But someday, Mulally will go — and who will take his place could determine whether the changes he has installed at Ford to promote teamwork around the world will live on.

“There are a lot of good options,” Aaron Bragman, an automotive analyst for IHS Global Insight, told the Free Press.

That’s a change from before Mulally came to Ford. Years of turnover in the executive suite — a result of the company’s dog-eat-dog corporate culture and turnaround plans that repeatedly shed executives — led to a view that Ford had a weak bench.

But today, there are at least four viable internal contenders, according to analysts, dealers and insiders: Fields, Jim Farley, Joe Hinrichs and Lewis Booth. All but Booth are in their 40s and could have long careers leading Ford into the future.

Having that many contenders can serve as both an asset and a liability, said John Challenger, CEO of consulting firm Challenger, Gray & Christmas.

“If there is a clear-cut successor, there is not the risk of politicking,” Challenger said.

But Fields, who has worked at Ford for 20 years, told the Free Press on Wednesday that the “parlor games of the past” have ended as a result of Mulally’s collegial, team-oriented approach.

“We not only committed to a plan, but committed to each other,” he said.

Mark Fields

Fields, 48, initially made his mark at Ford when he led the successful turnaround of Mazda from 2000 to 2002. Fields also is one of the architects of Ford’s Way Forward reorganization plan for North America in 2006, which has led to progress as the long-troubled division. Ford North America posted a profit in the third quarter — its first since 2005.

“He’s been at it since before Mulally,” said Peter Morici, an economist and professor at the University of Maryland. “If I were Bill Ford, I’d pick Mark Fields to be Mually’s successor.”

When Fields became president of the Americas, he blew in with a rock-star executive image that made him seem difficult to approach, said Mark Smith, president of Dick Smith Ford, a dealership in Raytown, Mo. In person, however, Fields is approachable and has won over many dealers, Smith said.

“He has turned out to be a key piece of the leadership team,” Smith said.

Joe Hinrichs

Hinrichs, 42, Ford’s group vice president of global manufacturing and labor affairs, is expected to become Ford’s group vice president and president of Asia Pacific and Africa on Dec. 1.

That promotion could give Hinrichs — who, like Fields, has a master’s degree in business administration from Harvard — the experience he needs to eventually lead Ford.

“They have sent him to the land of opportunity,” Bragman said.

Hinrichs joined Ford in December 2000 as plant manager of the Van Dyke Transmission Plant in Sterling Heights.

He came from General Motors, where he had a stellar career that included becoming the company’s youngest plant manager. He was 29 then and so successful that the nation’s top business schools still study how he performed in that post. He also has experience in private equity.

In his recent assignments, Hinrichs has led Ford through several rounds of union negotiations that have led to favorable contract adjustments. That included, however, a deal that Ford workers rejected in voting earlier this month.

Jim Farley

Farley, 47, came to Ford in November 2007 from Toyota, where he was group vice president and general manager of Lexus.

Although he came to Ford as an outsider, Farley has emotional, family ties to Ford. His grandfather was one of Ford’s first workers at the Rouge foundry and later a Lincoln dealer.

Since arriving at Ford to lead marketing, Farley has proved successful. He has helped the automaker boost market share, even while reducing incentive spending, by targeting digital marketing efforts through savvy social media efforts. That includes one campaign to promote the Fiesta subcompact, which has created 60% brand awareness for a car Ford won’t begin selling in the United States until next year.

In July, Ford gave Farley the additional responsibility of leading Ford’s operations in Canada, Mexico and South America. Farley reports to Fields for that portion of his duties.

Lewis Booth

Of all the top contenders, Booth, 61, has the longest résumé. Booth was born in Liverpool, England, to the son of a Ford dealer. He has developed deep management, financial and global experience over the years. He was named the company’s executive vice president and chief financial officer on Nov. 1, 2008, and could step in immediately as CEO if Mulally leaves sooner than expected.

Motor Trend magazine selected the Ford Fusion midsize sedan as its car of the year. Billionaire financier George Soros revealed his investment arm has purchased $52.9 million in Ford stock. And, the company’s stock price hit a 2-year high of $9 per share before closing at $8.98 for the day.

“It’s really gratifying to see that everybody is appreciating the Ford plan and the progress we are making,” Ford Motor Co. President and CEO Alan Mulally said during a crowded celebration Tuesday, while sporting an arm sling because of recent shoulder surgery.

Mulally, who underwent surgery this month to fix a lingering tennis and golf injury, attended Motor Trend’s award ceremony at Ford’s world headquarters.

Mulally said the progress of his shoulder, like Ford, is ahead of schedule and said the Motor Trend Car of the Year award provides additional evidence of that progress.

About 500 employees attended the emotional ceremony, including hundreds who worked directly on the Fusion and proudly stood up to accept credit from Ford’s leaders.

“It means so much to all the Ford employees,” said Sonya Nematollahi, who was the engineering supervisor for the Fusion’s instrument cluster and has worked for Ford for 19 years. “We had such a dedicated team that worked through Saturdays and Sundays and holidays.”

Angus MacKenzie, Motor Trend’s editor in chief, said the 2010 Ford Fusion beat a field of nearly two dozen contenders that were put through intensive driving tests.

First introduced in 2005, the Ford Fusion was refreshed this year with a new engine, transmission and better fuel efficiency as well as a redesigned front end and interior.

Derrick Kuzak, Ford’s group vice president of global product development, said better fuel efficiency was among the key improvements for the 2010 Ford Fusion.

Because of the improved fuel economy, Mark Fields, Ford’s president of the Americas, said the 2010 Fusion has “really done a lot for our image, and it’s done a lot for our sales and market share.”

Since the redesigned Fusion was introduced in March, it has become the top-selling car built by an American automaker.

Geely Chairman Li Shufu, the billionaire founder of Geely Automobile Holdings Ltd., China’s biggest private automaker, gave assurances that Volvo’s main plants in Sweden and Belgium will stay open, Glenn Magnusson of the Ledarna union said.

The four unions involved will hire a consultant to review the takeover plan’s viability and “dig” into the financing question, Magnusson said in a phone interview. While Geely says its backers include Chinese banks, labor leaders are concerned that the government may ultimately be behind the takeover.

“It was a sensitive question for the Chinese,” Magnusson said. “The answer we got was that Geely Holding is the main investor in buying Volvo. They didn’t answer more than that. We may not find out until the final phase of the negotiations.”

Li affirmed that there is no plan to meld the Volvo and Geely brands and that the Swedish company’s base will remain in Gothenburg, Magnusson added. The official said yesterday that “things may be rosy” while the Chinese government views Geely favorably but that Volvo may lose out if that attitude changes.

The IF Metall union’s Mikael Saellstroem said Li “was clear Volvo will have substantial growth” under the Geely plan and will seek to recoup lost market share in the U.S. The two main European plants may even add capacity and production at a factory in China will increase to serve the local market.

Magnus Sundemo, head of Volvo’s engineering union and also at the talks, said yesterday that knowing who is backing Geely is “crucial in order to understand if they’re long- term players and have the financial muscle to handle this.”

Sundemo is also a founder of Konsortium Jakob AB, a Swedish group that’s preparing a bid for Volvo. He said he’d be “toning down” contact with Jakob during the Geely visit.

Anders Fogel, a Geely spokesman in Stockholm, couldn’t immediately be reached for comment on the meeting between Li and the unions. Talks with Ford “are definitely heading in the right direction,” he said yesterday, without providing details or specifying when negotiations might be finished.

Ford said Oct. 28 that it’s focusing on selling Volvo to Geely, which has offered about $2 billion for the unit, less than one-third of the price the U.S. automaker paid in 1999. Dearborn, Michigan-based Ford hasn’t ruled out other buyers.

Li also briefed Swedish government officials on Nov. 17 and will meet with Ford and Volvo managers later this week.

Hans Pettersson, a deputy director at Sweden’s Enterprise Ministry, said the government has agreed not to comment on the Nov. 17 meeting with Li and Geely officials.

]]> http://www.pierrefordblogs.com/index.php/2009/11/fiesta-movement-on-the-right-path/feed/ 0 http://www.pierrefordblogs.com/index.php/2009/11/ford-fusion-receives-top-marks/ http://www.pierrefordblogs.com/index.php/2009/11/ford-fusion-receives-top-marks/#comments Wed, 18 Nov 2009 17:35:18 +0000 Kyle Sorenson http://www.pierrefordblogs.com/?p=1072 A year ago, many people were predicting the end of Detroit. In light of the financial sector’s collapse and the subsequent Big Three implosion (not to mention a few highly publicized chats between Detroit CEOs and members of Congress), naysayers around the world insisted that America’s moment to shine was over — at least as far as cars were concerned. Today, however, we need look no further the Ford Motor Company to see that rumors of Detroit’s death have been greatly exaggerated.

Tuesday, the popular Ford Fusion sedan was awarded Motor Trendmagazine’s car of the year award. Fuel-efficient and affordable (starting under $20,000), the 2010 Ford Fusion scored a whopping 8.8 review here at TheCarConnection.com, and it’s had similar appeal among the buying public. Over the past year, the Fusion has boosted sales and helped expand Ford’s U.S. market share by almost a full percentage point: the company now holds 15.8% of the American market.

Coinciding with the Motor Trend award was another announcement — one from multi-billionaire investor George Soros. Soros revealed his purchase of $52.9 million in Ford stock, which, combined with Fusion news, sent Ford shares surging. After flirting with the nine dollar mark, the stock finally settled at $8.98. That’s the highest Ford’s stock has been in over two years, and a far cry from the low point of $1.26 per share Ford hit a year ago this month.

Whether General Motors and Chrysler will rebound as impressively as Ford is a matter for serious debate — and at the very least, Ford will be a tough act to follow. Still, Alan Mulally & Co. offer some bright rays of hope for Detroit’s future.

Ford (and its subsidiary Volvo) earned six of the safety awards. Subaru and Volkswagen (including Audi) were second with five picks each. And Chrysler, which went through bankruptcy protection this year, had four. But the more interesting news comes from the automaker that was shut out: Toyota.

Last year, Toyota (including Lexus and Scion) had 11 top picks. This year, however, the insurance institute raised the bar for qualifying. For the first time, a Good performance (the top rating) in a roof strength test to measure rollover protection is a requirement. The insurance institute conducted its first roof strength tests for its rollover ratings earlier this year. Consequently, the number of Top Safety Picks dropped from 94 vehicles last year to only 27 this year. The Honda Accord, which was a Top Safety Pick the previous two years, didn’t make it for 2010.

To earn a Top Safety Pick award, a vehicle must get a Good rating in the insurance institute’s tests of front, side, rear and, now, rollover protection. In addition, it must have electronic stability control. The institute named winners in five categories: large cars, midsize cars, small cars, midsize S.U.V.’s and small S.U.V.’s (see full list below).

Volvo XC60.

Despite a seat-belt failure in the Volvo XC60 during the side-impact test – the seat belt detached from its anchoring point — and a pending recall of some 9,600 XC60’s in the United States and Canada, the insurance institute gave the model a Top Safety Pick designation to vehicles produced after November because Volvo is fixing the problem.

“We think that what happened in the test was a combination of bad design and bad luck,” said Russ Rader, a spokesman for the safety organization.

Although the insurance institute says its tests replicate real-world crashes, in this case, Mr. Rader said, it is unlikely this exact combination of events would come together in the same way to produce the same result in a real-world crash. “But all the same, it shouldn’t happen in a crash test, or even be a possibility, so Volvo agreed to do this recall,” he said.

The insurance institute did not conduct a second side-impact test, Mr. Rader said. “The judgment of our engineers was that the fix Volvo proposed would take care of the problem, and that we wouldn’t require a second test.”

Here are the Top Safety Picks:

Large cars:
Buick LaCrosse
Ford Taurus
Lincoln MKS
Volvo S80

Midsize cars
Audi A3
Chevrolet Malibu (built after October 2009)
Chrysler Sebring 4-door with electronic stability control
Dodge Avenger with electronic stability control
Mercedes C class
Subaru Legacy
Subaru Outback
Volkswagen Jetta sedan
Volkswagen Passat sedan
Volvo C30

Small cars
Honda Civic four-door (except Si), with electronic stability control
Kia Soul
Nissan Cube
Subaru Impreza (except WRX)
Volkswagen Golf four-door

Midsize S.U.V.’s
Dodge Journey
Subaru Tribeca
Volvo XC60
Volvo XC90

Small S.U.V.’s
Honda Element
Jeep Patriot, with side torso air bags
Subaru Forester
Volkswagen Tiguan

The Fusion was chosen best of 23 new or significantly upgraded vehicles that were eligible for the award after a week of testing, Motor Trend said.

Motor Trend said the full range of Fusion models was impressive to the judges, from the four-cylinder entry level vehicles to the all-wheel drive sport and hybrid versions.

The Fusion, which has become one of the top 10 selling vehicles in the United States and was redesigned for 2010, exceeded its previous annual sales peak earlier in November. The car was launched initially by Ford in 2006.

Ford posted a nearly $1 billion third-quarter profit that surprised Wall Street analysts this month and is the only large U.S. automaker not to reorganize in bankruptcy with U.S. government support in 2009.

The automaker’s shares reached a more than two-year high on Tuesday, a day after billionaire investor George Soros’ hedge fund disclosed taking a 7.3 million share stake in Ford during the third quarter.

U.S. 2009 sales of the Fusion were up 15 percent through October at 148,045 but trail Toyota Motor Corp’s (7203.T) Camry and Honda Motor Co Ltd’s (7267.T) Accord in the mid-size sedan segment, one of the key areas in the U.S. market.

Dearborn, Michigan-based Ford has looked to set itself apart from U.S. rivals General Motors Co [GM.UL] and Chrysler Group LLC, which reorganized under government-funded bankruptcies this year, and increasingly uses Toyota and Honda as benchmark competitors.

Ford’s sales of the Fusion surpassed the previous full year sales record of 149,552 vehicles earlier in November. That record was set in 2007.

Sales of the vehicle have helped keep Ford’s U.S. sales declines for 2009 slower than the drop in the industry overall. Through October, Ford’s U.S. sales are down 20.4 percent for the year, while the industry is down 26 percent.

Ford shares were up 22 cents, or 2.5 percent, at $8.93 Tuesday on the New York Stock Exchange. Earlier on Tuesday, the stock reached $9, a more than two year high that is also a nearly 29 percent rise since Ford posted its third quarter earnings in early November.

The Detroit Free Press reports, “Through early November, Ford has sold 151,137 Fusions, topping Ford’s previous full-year total sales of 149,552 in 2007.” AddsBloomberg, “The 15 percent gain in the first 10 months of 2009 made it the most popular car for a U.S.-based automaker, Ford said. U.S. industry auto sales have fallen 25 percent this year.”

The sales spike is due in large part to the Fusion’s diverse line-up, which includes a hybrid model that boasts a 39 mpg combined fuel economy rating. According to Ford, the Fusion Hybrid makes up about 20 percent of Fusion sales. “Perhaps even more significant, more than 60 percent of Fusion Hybrid sales have been to customers coming from import brands — mostly Toyota and Honda,” notes Ford.

See how the Fusion and Fusion Hybrid

stack up in the U.S. News Best Car Rankings. Then check out this month’s best car deals.

The inflatable rear seat belts will be available next year on the next-generation Explorers and will become more widespread over time, Ford said in a press release.

The inflatable belt’s increased diameter helps hold rear seat passengers in the appropriate seating position, which will help reduce head, neck and chest injuries, according to Ford.

“Ford is pioneering inflatable seat belt technology to help enhance crash safety protection, while encouraging more people to buckle up with a more comfortable belt,” Paul Mascarenas, Ford’s vice president engineering and global product development, said in a statement.

According to Ford’s research, 90% of drivers indicated that the inflatable belts are similar to or more comfortable than traditional belts

The company estimated that its market share in October grew to more than 15 percent, which was higher than a year ago and higher than its share during the first nine months of this year.

Sales of the all-new 2010 Ford Taurus climbed to 6,076, an increase of 141 percent over a year ago when the last generation Taurus was reaching the end of its model run. Dealers reported retail sales nearly tripled year-ago levels.

Among other Ford, Mercury and Lincoln products with sales increases were the Ford Fusion, 24 percent; Ford Mustang, up 2 percent; Linclon MKZ, up 27 percent; Ford Escape, up 26 percent; Ford Edge, up 38 percent; Ford Flex, up 8 percent; Mercury Mariner, up 36 percent; and Lincoln MKX, up 15 percent.

Ford’s F-Series, the top-selling pickup trucks for 32 years, posted sales of 39,496 in October.

Ford reported a net income of almost $1 billion in the third quarter – its first operating profit since early 2008. It was the only major U.S. automaker not to file for bankruptcy this year.

Alan Mulally

Ford’s Chief Executive Alan Mulally says the company expects to be “solidly profitable” in 2011. “Clearly the move from break-even or better to solid profitability – it means that we’ll be making money on all of our vehicle operations,” he said.

Ford benefitted from a government program that offered car buyers rebates if they traded in their older vehicles for more fuel-efficient models.

“Cash for Clunkers” helped Ford cut costly incentives and raise production.

Among the U.S. “Big Three” automakers, Ford alone declined to take billions of dollars in government loans. GM and Chrysler received bailouts and are still struggling after emerging from bankruptcy.

“The public, you know, views Ford a lot more favorably now than they ever have for not taking the government bailout money,” Mike Anderson, who owns a Ford dealership said.

Ford began cutting costs and slashing jobs several years ago. It has also come up with new models that are popular with consumers.

A recent [Consumer Reports] survey ranked 90 percent of Ford’s models as “above average or better” in terms of quality.

Jeremy Anwyl

Jeremy Anwyl is chairman of the online car buying websiteEdmunds. “When you look at where Ford was two or three years ago, versus where they are today, they have absolutely turned the corner,” Anwyl says, “and the signs for them moving into next year, I think, are positive.”

But Ford’s troubles are far from over. The company is carrying more than $23 billion in debt and is not predicting a profit for 2010.

Members of the United Auto Workers who work at Ford overwhelmingly rejected a proposed agreement for more concessions to the company.

The plan would have brought Ford’s labor costs in line with those of General Motors and Chrysler.

The company says giving more vehicles electric motors and big batteries is needed to meet tightening fuel economy standards and ease emissions, while providing consumers with cars they want to drive. “By 2020, between 10 percent and 25 percent of the fleet will be electrified,” said Nancy Gioia, head of Ford’s EV program.

Ford is serious enough about cars with cords that it has named Gioia, who started with the company in 1982 as a trainee in the electronics division, global director of vehicle electrification. She’s shooting for an ambitious target, considering hybrids currently comprise about 3 percent of the market. But that market is expected to grow, and Ford says vehicles like the Fusion Hybrid will be the bulk of its electrified fleet for the foreseeable future.

“The hybrid will dominate that market through 2020,” Gioia told Wired.com.

But Ford is hard at work on an electric delivery van slated for next year, an electric car we’ll see in 2011 and a plug-in hybrid we’ll see the year after that.

Hybrids and EVs are but one part of CEO Alan Mulally’s push to increase the efficiency of Ford’s entire lineup. The centerpiece is Ford’s EcoBoost engines, which the company says deliver 20 percent more fuel economy and 15 percent less pollution than comparable engines with no loss in performance. Ford plans to offer the turbocharged direct-injection engines in 90 percent of its vehicles by 2013.

Other tech slated for the showroom includes dual-clutch transmissions, electric power steering and increased use of aluminum, magnesium and high-strength steel to cut the weight of every vehicle by 250 to 750 pounds.

“We are focusing on sustainable technology solutions that can be used not for hundreds or thousands of cars, but for millions of cars,” Mulally said.

Gioia says hybrids, plug-in hybrids and electric vehicles will play an increasingly vital role in the push toward more environmentally friendly motoring. Ford brought a prototype of its Focus EV to San Francisco and let us take it for a spin downtown. It was utterly unremarkable, save for the excellent torque, but then that’s the point. Ford wants the Focus EV to be largely indistinguishable from the gasoline version.

“The Focus is the DNA,” said Steve Deleiden, Ford’s powertrain system engineering leader. “The Focus is the benchmark.”

As such, the car isn’t terribly quick — Deleiden says the goal is a zero to 60 time in the nine- to 10-second range — but it was peppy in traffic. Deleiden wouldn’t offer any performance or technical specs but said Ford is shooting for a range of 100 miles from a 23-kilowatt-hour lithium ion battery.

“We’re pretty sure we can get there,” he said. The prototype has a range of about 80 miles and needs 10 to 16 hours to recharge at 110 volts, and about half that at 220. Ford is keeping mum on who’s supplying the batteries, but the drivetrain has been developed with a lot of help from Magna International, one of the world’s leading automotive engineering and component suppliers.

“I’d say the prototype is about 60 percent of what we’ll see in production,” Deleiden said. “There is a significant amount of engineering work to be done.”

There’s no word yet on just what the car will look like — those cool Focus EVs you’ve seen on The Jay Leno Show are prototypes based on the European-spec Focus. But it will be built on Ford’s global C platform, the chassis underpinning the Focus, C-Max and Transit Connect vehicles. Ford has the capacity to crank out as many as 2 million C-platform vehicles annually, but Deleiden says EVs will comprise a fraction of that.

“We’re looking at 5,000 to 10,000 vehicles a year to start,” he said. “We’ll see what the demand is and go from there.”

No word yet on the price, but Gioia says the goal is to make it “affordable” because “this is not about a small niche. This is about affordable transportation for the masses.”

Ford plans to roll out 15 prototypes in London next year to begin testing the cars and their charging stations. The tests mirror those currently underway in the United States, where the Department of Energy, the Electric Power Research Institute, Southern California Edison and 10 other utilities are testing a fleet of 20 Ford Escape plug-in hybrids. Ford says the vehicles have logged more than 75,000 miles during the past two years. The vehicles are helping everyone involved study battery technology, system integration, customer vehicle usage and charging patterns, as well as grid infrastructure.

Ah, the grid. Mark Duvall, director Electric Power Research Institute, says 10 million electric vehicles would need less than 1 percent of the juice generated in the United States. Each of those cars would draw about 700 watts, he said. “Three plasma TVs, in one year, use about as much power as a Ford Escape plug-in hybrid,” he said.

That said, the grid may need improvements at the local level — new transformers, for example, or overhauled substations — to handle a big influx of electrified vehicles, he said. “But there’s a near-term investment that leads to a long-term benefit,” he said. The benefits include a more efficient generation system with greater integration of renewable energy sources and reduced need for new peaker plants, which run only at times of high demand. Jon Wellinghoff, chairman of the Federal Energy Regulatory Commission, says utilities could even reimburse owners for the battery storage offered when the cars are plugged in.

More important, Duvall said, is making sure the cars can communicate with the grid. That will allow the cars to charge themselves at optimal times, minimizing the impact on the grid and avoiding peak times. Ford already is developing a system by which its electric cars can communicate with the grid called V2G technology and says it could be ready by 2013.

Photos: Jim Merithew / Wired.com

Ford got a big assist from Magna International, which developed much of the electric drivetrain in the Focus prototype. We’d love to give you the tech specs, but Ford’s keeping mum for now.

The prototype sports a pair of lithium-ion packs that together produce 23 kilowatts-hours. Ford says splitting the pack allows it to more effectively distribute the weight, an important consideration given the two packs weigh a total of 700 pounds. This car is a prototype, and the air-cooled packed in the production model will be more neatly integrated into the vehicle.

Just compare the Consumer Reports numbers:

Ford: 46 of 51 models (90%) have average or better then average quality.

GM: 21 of 48 models (44%) have average or better than average quality

Chrysler: 1 of 26 models (4%) has average or better than average quality.

Need further proof of the split in quality in Detroit?

Consumer Reports says only the Toyota Prius beat out the Ford Fusion and Mercury Milan for reliability among family sedans. By comparison, 1/3 of the Chrysler, Dodge, and Jeep models have much worse than average quality.

So how do you explain why Ford is building better cars with fewer complaints than GM and Chrysler?

* Stability

The stability at Ford played a huge part.

The workers at Ford clearly went through a trying year, but nothing compared to the folks at GM and Chrysler who pretty much knew they were headed for bankruptcy or worse.

That’s not to say the folks at GM and Chrysler threw in the towel and stopped caring, but it doesn’t take a rocket science to figure out quality slips at companies in duress.

* Tweaking established platforms, not starting new

When you look at the Ford platforms and vehicle lines, they tend to be older ones the company has steadily improved in recent years. Take the Fusion. Not a lot has changed with the model line in terms of how the car is built, etc. So Ford has been able to concentrate on refining the process, not starting from scratch. When you look at GM and Chrysler, it’s a different story. And there will be even more change as the companies transition into their new lives.

* Ford fit and finishes improving

It’s taken some time, but Ford finally has a family of cars with the fit and finish to compete with the Asians. For years, Ford interiors looked cheap and felt cheap. Not anymore. Sit in the Lincoln MKS or Ford Flex and you’ll see how much Ford has improved its interiors. There’s still room for improvement, but it’s clear Ford builds a better car and truck.

At the heart of Ford’s relative success has been its ability to minimize its year-over-year sales declines while taking advantage of its competitors’ weakness and grabbing market share.

According to CNW Marketing Research, Ford gained more than five percentage points of U.S. retail market share in the third quarter compared with the same period of 2008, while Detroit rivals General Motors Co. and Chrysler Group LLC lost ground.

“The Ford story is that they have taken advantage of the fact that they were sole domestic brand not to take a government bailout and not to file for bankruptcy,” said Efraim Levy, an auto-industry stock analyst at Standard & Poor’s. “But those benefits will fade in 2010 as the weaker competitors distance themselves from the bankruptcy filings and start to introduce some fresh product.”

In the past week, several Wall Street analysts expressed optimism that Ford’s North American operations could break even in the third quarter—a significant achievement after several years of steep losses—though they still expect the company to post a loss for its operations overall. One analyst, J.P. Morgan’s Himanshu Patel, even forecast a quarterly profit overall at Ford.

“Obviously, I’m very pleased with the progress that we’re making all around the world, and our market share is going up in every major market,” Ford Executive Chairman William Clay Ford Jr. told reporters last week. “And our products are being very well received.” He declined to discuss earnings, citing the quiet period before their release.

Ford continues to benefit from stronger prices for both its new and used cars that should boost results at its wholly owned financing arm, Ford Motor Credit. The trend could help the company reverse large losses accounted for in 2008 at the unit based on anticipated declines in the value of its leased vehicles.

Another positive sign could come in a report expected to be released soon by auto guide Kelly Blue Book. Two Ford vehicles will appear on the list of 2010 model-year vehicles projected to retain the greatest amount of their original retail price after five years of ownership, said a person familiar with the matter. Last year, no Ford car or truck held a spot on the 2009 model-year list.

Ford also is expected to perform well in the influential annual auto-reliability survey by Consumer Reports, due out Tuesday.

In the second quarter, the car maker reported a profit of $2.3 billion, though that came mainly from gains it recorded as part of efforts to restructure its debt. Excluding the gains, Ford would have reported a loss of $424 million, still narrower than a comparable loss of $1.03 billion a year earlier and much better than analysts had expected. The company has lost more than $30 billion since 2006.

The improved results have helped build Chief Executive Alan Mulally’s image as a turnaround leader. But Ford still carries a massive debt after borrowed $23.5 billion in 2006 to fund its restructuring. Many on Wall Street are waiting to see how Ford will cut its debt load.

Despite an improved outlook, Ford hasn’t revised its profitability forecast, stating the company won’t break even or make money until 2011.

A person familiar with the matter at Ford said that even if encouraging signs continue to emerge, Ford may stay conservative about how quickly it can return to sustained moneymaking

Ford says Matt Kenseth and David Ragan will both use the “FR9.”

The motor is the first new model produced by the company since the 351 Windsor in 1991, and the first engine the company has ever produced specifically for use in NASCAR.

The motor has been in design and production for three years. Engine designer Doug Yates says the company believes it will level the playing field for Ford in stock car racing.

Neither Kenseth nor Ragan qualified for the Chase for the championship. Ford Chase competitors Carl Edwards and Greg Biffle will continue to use their old engines.

The scheme represents a new, green take on an old option for performance vehicles — as Motor Trend points out, “customizable dynamic settings are nothing new” for 4-wheel-drive SUVs and luxury sports cars. It’s also a step toward automation from the efficiency gauges in cars like the Toyota Prius that give drivers information about how their driving behavior affects their MPGs in real time.

“Hypermilers” have seized on this data to eke out triple-digit miles per gallon in hybrid vehicles. But providing the option to automate greener driving behavior — by smoothing out acceleration, for example — could help bring hypermiling techniques more into the mainstream.

Of course, that will depend not only on what the researchers in this project find possible, but also what types of settings Ford decides to implement in its vehicles. The company says it’s working to “determine how internal electronic vehicle controls could be tweaked to further improve fuel efficiency and fun-to-drive attributes.” Currently, the research team is running 50,000 simulations per week to analyze data collected from 2,500 road trips. Hopefully, that work will produce technology that maintains efficiency as a priority in a range of settings, rather than an alternative that pits green against performance.

Ford says 19 percent of the 12,352 Lincoln MKS sedans sold through September have been equipped with the system, called Active Park Assist.

On the Lincoln MKT crossover, the rate was 26 percent of the first month’s sales of 455 vehicles.

Active Park Assist, which is made by Valeo Inc., is available as a standalone option on the MKS for $535. On the Ford Flex and MKT, it is a $595 option. Active Park Assist also is available on the 2010 Ford Escape and Mercury Mariner crossovers.

The system uses ultrasonic sensors in the bumpers to measure the distance between two parked vehicles. If the space between the vehicles is deemed sufficient, the system prompts the driver to release the steering wheel.

Using the vehicle’s electronic power steering, Active Park Assist steers the vehicle into the space while the driver works the brake and accelerator. Parking usually takes about 30 seconds or less.

Toyota offers a camera-based self-parking system on the Prius hybrid as part of a $4,769 package, as well as on Lexus vehicles. Toyota says about 5 percent of Prius buyers get the system, which is bundled in a $4,769 option package.

The Toyota system requires more driver input than Ford’s. The driver in a Prius or Lexus must use the car’s navigation screen to determine the distance between two objects.

Ford in October 2011 will shift the Kuga model to Louisville, Kentucky, from a factory in Saarlouis, Germany, said the people, who asked not to be identified because the plan is private. As many as 80,000 a year will be exported to Europe, one of the people said. The dollar has fallen 18 percent against the euro this year, lowering the cost of U.S.-made goods.

“This makes sense because western Europe is not a particularly cheap place to make cars,” said Barclays Capital auto analyst Brian Johnson, who estimates Ford’s labor costs in the U.S. could be $10 an hour lower than in Germany. Johnson, based in Chicago, rates Ford “equal weight.” “Building a car with European specifications on a U.S. assembly line also shows the benefits of having common vehicle platforms.”

Ford, aiming to be profitable by 2011, is asking the United Auto Workersunion to approve a second round of concessions this year to lower its labor costs to match Toyota Motor Corp.’s U.S. plants. The new models for the Louisville factory, which will also make the Escape small SUV, are part of the automaker’s Oct. 13 tentative agreement with the union, the people said.

“We’re not yet ready to announce which products will be sourced” in Louisville, said Mark Truby, a spokesman for Ford, based in Dearborn, Michigan.

Union Resistance

Ford is facing union resistance to the latest concessions, which workers began voting on today. To win approval, Ford offered to bring new work into 10 U.S. factories, according to a UAW summary of the tentative agreement. The Louisville assembly plant, which now makes the larger Explorer SUV, “will be sourced an incremental product with significant export volume,” the UAW summary said.

“We’ve been told we’ll receive some type of fuel-efficient vehicle based on the C-platform” used for small cars, said Rocky Comito, president of the UAW local representing the Louisville plant, who added he didn’t know the name of the models the plant will receive.

The Escape and Kuga models are code named C520 and based on Ford’s chassis for compact cars, the people said. Ford said in a July 24, 2008, press release it would convert Louisville in 2011 from an SUV factory “to produce small vehicles from the global C-car platform.”

Ratification Votes

Ford workers there will begin voting Oct. 28 on the contract changes, which include a six-year freeze on wages for new hires and a ban on strikes over wages and benefits until 2015, Comito said. Voting will conclude Oct. 30, he said.

At Ford’s Dearborn, Michigan, manufacturing complex, voting began today and concludes Oct. 30, said Ron Lare, a retiree from the automaker’s truck factory who remains active in union politics. Workers are reluctant to give additional concessions after agreeing in March to cede annual bonuses and cost-of- living increases and to accept reduced layoff benefits, he said.

About 500 workers at the Dearborn truck factory shouted down UAW Vice President Bob King yesterday by chanting “No, no, no” when he attempted to sell the latest deal, said Gary Walkowicz, a union official at the plant.

Besides the new production commitments, Ford also agreed to pay its 41,000 U.S. hourly workers a $1,000 bonus next March tied to meeting quality and productivity goals this year, according to the union’s summary of the deal.

Against Toyota

The automaker has said the concessions the union accepted in March will reduce its annual labor costs by $500 million. That deal reduced Ford’s hourly labor and benefit costs to $50, near par with Toyota’s U.S. labor costs of about $48 or $49 an hour, Ford said at the time. Ford has not said how much the latest round of givebacks would save the company.

The weaker dollar also makes U.S. production of the Kuga more profitable. The euro crossed the $1.50 threshold Oct. 21 for the first time in 14 months on optimism over a global economic recovery.

As a sign of the gains from the weaker dollar, the U.S. trade deficit unexpectedly narrowed in August as exports climbed to the highest level of the year and oil imports plunged. The gap fell 3.6 percent to $30.7 billion from a revised $31.9 billion in July, the Commerce Department said Oct. 9. Exports increased 0.2 percent to $128.2 billion, led by a $496 million gain in sales of cars and parts.

Also new for this year, the Ford Warriors in Pink program will give away two all-new Tauruses from Ford outfitted with Martha Stewart-inspired items. In addition, Ford is unveiling a new stamp set inspired by crafting experts at Martha Stewart Living Omnimedia to accompany the Ford Warriors in Pink wear and gear, available at www.FordCares.com. Extending beyond October, which is National Breast Cancer Awareness Month, 100 percent of net proceeds go to Susan G. Komen for the Cure all year long.

Ford Motor Company is a 15-year partner of Susan G. Komen for the Cure and has dedicated more than $100 million to the breast cancer cause.

Martha Stewart Living Omnimedia will help support Ford’s fight against breast cancer with an entire hour devoted to this important cause. Homemaking icon Martha Stewart will host a special studio audience of Warriors whose lives have been touched by breast cancer.

“This partnership helps broaden the reach for Ford Warriors in Pink with a different approach by teaming up with the biggest name in home design,” said Connie Fontaine, Brand Content and Alliances manager for Ford Motor Company. “As a 15-year partner of Susan G. Komen for the Cure, we know that awareness leads to early detection and early detection saves lives. This special episode of ‘The Martha Stewart Show’ brings a new element of creativity to drive awareness and further our commitment in the fight against breast cancer.”

“We’re delighted to be partnering with Ford Warriors in Pink to help raise awareness about breast cancer,” said Janet Balis, EVP Media Sales and Marketing at MSLO. “Breast cancer touches the lives of so many women and their families. We’re proud to be tapping the power of our media platforms to develop a creative, integrated program that resonates with our passionate consumers and spurs action.”

As a long-standing partner of Susan G. Komen for the Cure, Ford has dedicated more than $100 million to the breast cancer cause and remains committed to innovative ways to drive breast cancer awareness. The company’s commitment runs well beyond raising funds – as a national series sponsor of the Susan G. Komen Race for the Cure, Ford is present at all 121 races nationwide.

SALES AND SHARE LEADERSHIP

• Ford F-Series share for September is 40.6 percent, outselling the Chevrolet Silverado by more than 14,000 units and outselling the Silverado and GMC Sierra combined by more than 7,000 units; overall F-150 leads by more than 66,000 units vs. the industry
• Calendar year-to-date F-Series share of 35.6 percent is up almost 5 percentage points year over year
• With those numbers in the books, Ford F-Series is three-quarters of the way to becoming America’s best-selling truck for the 33rd consecutive year and America’s best-selling vehicle for the 28th consecutive year

QUALITY

• Winner of the J.D. Power and Associates IQS (Initial Quality Study) and APEAL (Automotive Performance, Execution and Layout) awards for Light-Duty Pickups
• Consumer Reports “Recommended Buy”
• Highest-quality F-150 ever, with the lowest TGW (Things Gone Wrong) and highest TGR (Things Gone Right) scores of all time as measured by the Global Quality Research System survey

CUSTOMER SATISFACTION

• Customer Satisfaction for F-150 currently stands at 84 percent, up 7 percentage points over last year

AWARDS
Most honored pickup truck of 2009 with 25 major awards, including:

• Motor Trend Truck of the Year™
• Named North American Truck of the Year at the 2009 North American International Auto Show (NAIAS)
• Named “Truck of Texas” by the Texas Auto Writers Association (TAWA)

FUEL ECONOMY

• The Ford F-150 line boasts improved fuel economy of 8 percent overall, including 12 percent on the 5.4-liter versions
• Unsurpassed fuel economy in the light-duty pickup truck segment with EPA ratings of 15 mpg city and 21 mpg highway

SAFETY

• America’s safest full-size pickup truck with 5-star frontal- and 5-star side-impact crash test ratings, the highest possible scores from the National Highway Traffic Safety Administration (NHTSA)
• “Top Safety Pick” award from the Insurance Institute for Highway Safety (IIHS)
• More standard safety content than any other pickup, including Safety Canopy® side-curtain air bag rollover protection system; new “K-bag,” a front seat dual-chamber side air bag named for its unique shape, which is designed to help protect the rib cage from excessive crash forces during a side impact; Trailer Sway Control and AdvanceTrac® with Roll Stability Control™ (RSC)

CAPABILITY

• Reinforced best-in-class position by achieving class-leading status with every cab – Regular, Super Cab and SuperCrew
• Increased maximum towing capability to 11,300 pounds
• Increased maximum payload capability to 3,030 pounds

VERSATILITY

• SuperCrew increased by six inches and has flat-load floor
• Best-in-class box access with tailgate step and side access step
• Unsurpassed towing confidence with standard Trailer Sway Control and available Integrated Trailer Brake Controller

TECHNOLOGY/INNOVATION

• SYNC: Industry-exclusive, voice-activated, hands-free, in-vehicle communications and entertainment system offers even more functionality for the 2009 model year with 911 Assist and Vehicle Health Report
• SIRIUS Travel Link™: When combined with voice-activated navigation provides users with a suite of data services, including real-time traffic, coast-to-coast weather conditions and fuel price information for more than 120,000 gas stations
• SIRIUS Satellite Radio: Broadcasts over 130 digital-quality channels, including 69 channels of 100 percent commercial-free music, plus exclusive channels of sports, news, talk, entertainment, traffic, weather and data
• Ford Work Solutions: A suite of industry-first features and technological tools that provide the connectivity, flexibility and security to conduct business right from the cab
• EasyFuel®: This capless fuel filler is a North American industry-exclusive feature that uses an integrated spring-loaded flapper door to eliminate the need for a fuel tank screw cap
• Tailgate Step: This industry-first feature allows customers easier access to pickup beds with a simple-to-use step that stores neatly into the tailgate
• Trailer Sway Control: Detects sway and applies engine and braking countermeasures to stabilize the vehicle-trailer unit
• Trailer Brake Control: A system that can, during a sway event, apply brakes to the trailer to help stabilize it

“With class-leading fuel economy, increased capability and upgraded content, the 2009 Ford F-150 continues to be the all-encompassing solution truck buyers look for.”

– Doug Scott,
Truck Group Marketing Manager

JP Morgan automotive analyst Himanshu Patel said today that he estimates Ford will report a profit of 16 cents per share for the three month period ending Sept. 30. He credits improvements in pricing and sales volume in the United States, as well as gains in residual values and profits in Europe, for the forecast.

However, Patel’s expectations stand in contrast to a consensus estimate from Wall Street analysts, who are expecting a loss of 24 cents per share.

Patel acknowledged that his outlook is optimistic compared with other analysts but said he is confident that Ford is on track to outperform expectations.

“The quarter does look really good,” Patel said.

In North America, Patel said Ford is benefiting from a surge in Ford F-150 pickup truck sales and reduced incentive spending. He further forecasts that Ford is on track to report a $200 million pre-tax profit for the North American division.

“This would be the first time North America is not in the red in recent memory,” Patel said.

The company has set a goal of making 10 percent to 25 percent of its fleet “electrified” by 2020, which represents somewhere between 800,000 and 2 million cars, said Nancy Gioia at a media event here on Wednesday. Ford announced on Wednesday that Gioia would hold a newly created position of director of global electrification, which covers hybrids, plug-in hybrids, and battery-electric vehicles.

Plug-in electric vehicles promise to offer a much lower cost-per-mile than gasoline cars and deliver substantial environmental benefits. But in the near term, hybrids will likely represent the largest volume in the mix of technologies, said Gioia at the event.

“We’ve finally demonstrated the technology, the life, the durability, the safety (of hybrids)–all of that has reached a comfort zone to make it viable. Now it’s going to be affordability that will drive mass market adoption,” she said.

Ford is now working on an updated generation of its hybrid power train, which will be used on its plug-in hybrid vehicles, which will come to market in 2012. Equipped with a larger battery than a traditional hybrid, the company projects its plug-in hybrids will allow drivers to go about 30 miles in electric mode, with the gasoline engine kicking in as needed for acceleration during those initial miles.

Before then, though, Ford plans to release an all-electric Focus compact sedan in 2011. An all-electric Transit Connect Utility Van is scheduled for release in 2011.

The electric Focus will be built in Michigan on the same manufacturing lines that make the gasoline version of the car. The car, which is expected to have a higher upfront cost than a gas Focus. This is because of the large battery, which will offer 23 kilowatt-hours of storage, or about 100 miles of driving range.

In addition to electrification, Ford is implementing a number of other efficiency enhancements to gasoline engines, with an eye toward high volume. Earlier this year, Ford started introducing its EcoBoost direct injection turbo technology, which allows 4-cylinder cars to have the same power as 6-cylinder models.

Ford is also developing “start-stop” technology where a vehicle’s engine turns off after being immobile for a few seconds, such as a stoplight. This technology will come to manual transmission Fords in Europe next year and the company expects to bring it to automatic transmissions as well, Gioia said.

Opening a niche for pure electrics
For all the excitement around the potential for electric vehicles at Ford and other automakers, there is skepticism over how much all-electric cars will appeal to consumers, at least in the next decade.

For consumers, there’s the ongoing concern over “range anxiety” where a driver can’t find a spot to recharge during a drive. Also, there aren’t many charging spots in public places, complicating the picture for city dwellers, for example.

Still, Ford expects growth from plug-in hybrids and battery-electric vehicles. There are many consumers and fleet vehicle drivers who have relatively short driving cycles on repeatable paths, making them good candidates for either type. Demand for battery-electrics may be driven by cities, which have created incentives for low-carbon transportation technologies or emissions-free zones, Gioia added.

“So whether it’s incentivized or just driving behavior, we do see growth in battery electrics around the world. I’m not sure North America will be the driver,” she said. “We may have the early-adopter lead, but if major infrastructure is not put in place, it will be hard to promote that.”

During the media day, IHS Global Insight analyst John Wolkonowicz projected that pure electric vehicles and range-extended electric vehicles, like the Chevy Volt, will represent just over 1 percent of the total market by 2014. All electrics will outsell range-extended vehicles, he said.
As any auto industry executive will tell you, the transition to plug-in electric vehicles requires coordination with utilities.

If large volumes of vehicles plugged into the grid at the same time, more expensive and polluting power plants may need to be constructed to meet the demand. To avoid that, automakers and smart-grid software companies are developing smart-charging technology that will allow vehicle charging at off-peak times, typically the overnight hours.

National Grid is one of several utilities working with the Electric Power Research Institute (EPRI) and the Department of Energy on a study to measure the effects of plug-in electric vehicles on the grid. At this point, National Grid is mainly gathering data on electricity usage and charge patterns, said Steven Tobias, principal analyst for technology and innovation at National Grid on Wednesday.

Farther out, utilities could rely on plugged-in vehicles for short-term storage to stabilize the grid. But National Grid’s main concern is making sure that plug-in electric vehicles work well with smart-grid home energy management systems, said Stan Blazewicz, the global head of technology at the utility.

Adding a few thousand plug-in electric vehicles across National Grid’s Massachusetts and New York regions wouldn’t be much of a concern in terms of demand, Blazewicz said. But utilities and automakers expect that “clusters” of consumers in neighborhoods will buy them. “When you get 100 vehicles all in the same area, that’s when it becomes a challenge for us,” he said.

There is technology that will allow utilities to control the rate of charging without creating an inconvenience for the consumer, he added. “At some point, we need the smart grid to manage EVs. We don’t want to be the roadblock.”

For its part, Ford is developing an in-car charge-management program and wireless system to communicate directly with smart meters, Gioia said.

When it comes to battery-electric or range-extended vehicles, one of the biggest barriers to consumers in the near term will be the higher upfront price, said Wolkonowicz. Government policies will “get us sliding down the technology curve where more and more people will see this as something they want to do,” he said.

Ford says that hybrid sales have been up considerably over the last year. Sales in September were up 73% from the previous year, and according to Automotive News this will put Ford within a few thousand cars of passing Honda as the second largest seller of hybrids in America. Not bad.

“More than 60 percent of Fusion Hybrid sales have been from non-Ford owners, and more than half of those are customers coming from import brands, mostly from Toyota and Honda,” says David Finnegan, Ford hybrid marketing manager.

Compare Ford’s hybrid sales figures with those of the top dog in the green car market, Toyota. During the same time period that Ford has seen that 73% skyrocketing in hybrid sales Toyota, has seen sales of its hybrids drop by 28%. Overall though, Toyota is still king of the hybrid hill, owning nearly 66% of all US hybrid sales.

New hybrid shoppers have been attracted to the ford line of hybrids due to superior mileage numbers and increasing consumer confidence in Ford build quality. The Fusion Hybrid is certified by the EPA at 41 mpg in the city and 36 mpg on the highway, thumping the Camry hybrid by 8 mpg in the city and 2 mpg on the highway.

Taken in total, what this all means is that on a level playing field Ford is a serious player. They will most likely surpass Honda soon, and if green-minded car buyers start to get a more patriotic bent in their buying decisions, Ford could also start to worry Toyota.

Bill Mann, portfolio manager of The Motley Fool’s Independence Fund, says that automakers outside of Detroit, such as Toyota, BMW and Mercedes, now a privately held company, are faring better. “Chrysler can’t really survive in its current form,” he says, adding that Detroit’s automakers are suffering from “battered customer syndrome,” consumers who are tired of buying poorly made cars. He says the new Ford Mustang and Chevrolet Camaro are the exceptions to that rule.

Toyota has been able to distance itself from Detroit because it’s perceived to produce quality cars, Mann says. Toyota was ranked a “buy” by Standard & Poor’s. The stock currently trades at about $80, and S&P’s 12-month target price for the stock is $97. Toyota’s revenues are projected to fall 20% in fiscal year 2010 to $172 billion, says S&P.

Mann encourages automakers to spend more time on their rental cars, which should be seen as an audition. He recently rented a Buick Enclave, which he liked and said would make him think about buying a Buick in the future. But when rental cars come stripped down and people have a bad experience driving them, it reinforces their stereotype about that car company.

He recommends Ford as a good buy because the company is cheap and it has avoided bankruptcy. Ford is ranked as a “hold” by S&P; it currently trades at about $7.75, and its 12-month target price as per S&P is $8.00. S&P says Ford’s 2009 sales will drop 23% because of poor demand and intense competition from other car manufacturers. Ford is trying to increase its profitability through new contracts with the United Auto Workers union, which could increase profits by about $2.5 billion a year in 2010, S&P says. But sales are expected to go up 10% in 2010.

Mann also recommends Tata Motors in India. The company recently released the Nano, the world’s cheapest car at about $2,500. The Nano is also transformational in India, which primarily relies on bikes and other two-wheeled transportation options, so the Nano could be competitive in other similar, developing markets, he says.

Rodney Johnson, president of HS Dent Investment Management, recommends Ford because it’s a cheap stock. The company is also reintroducing the Taurus, a popular car a few years ago, which should be able to claim back some sales, he says.

Johnson describes American automakers as “dead broke, ridiculously over-leveraged and unable to pay their bills.” He says these companies are in this state because of the Corporate Average Fuel Economy standards. Automakers have to meet certain fuel-efficiency standards, one standard for their fleet globally and another for their U.S. cars, which forces them to produce cars that they’re not good at making. He says American carmakers as producing good trucks, but since trucks and larger cars get poorer gas mileage than smaller cars these companies are pushed to produce cars that will better their overall fuel efficiency. “If you allowed automakers to make what they’re good at they’d be in much better shape,” Johnson says.

In its latest report on Ford, S&P asserted: “We believe that a shift to smaller vehicles and a reduction in planned fleet sales will hurt Ford’s market share in 2009.” According to the research company’s data, Ford, Lincoln Mercury (a division of Ford), Volvo and Jaguar made up 9.6% of cars sold in the U.S. in 2008, compared to 13.6% in 2006. Those automakers made up 19.3% of trucks sold in the U.S. last year and 20.2% of trucks sold in 2006.

Johnson would like to see a single CAFE standard rather than two separate ones, as cars overseas are more fuel-efficient and then the car companies could count their good miles per gallon European cars with their gas guzzling American trucks. “Fuel efficiency and pollution is a global concern, so why would you separate out the markets?” He also recommends buying BMW because the company has aligned its cars with customer demand and makes good sports utility vehicles.

The face of the auto industry is changing, and its peak locations might be changing too. Sacha Millstone, senior vice president at Raymond James, doesn’t expect to see new carmakers in the U.S. or Europe. Instead, she anticipates seeing more auto production from countries such as Russia, South Korea and China because this is where the newest car companies have been established.

Ronald Roge, chief executive officer of R.W. Roge & Company, also sees changes in the auto industry. “I think eventually we will see no more than five major global players with lots of smaller niche players around the world,” he says.

Charles Green, chief executive officer of Trusted Advisor Associates, challenges the automakers to do more than just improve their balance sheets. He says American car manufacturers are constantly at odds with the United Auto Workers union as well as their suppliers and customers rather than working with these people. “Until Detroit learns that collaboration gets you far lower costs than constantly aggravating competition, it will be engineering high cost cars,” he says, adding that a quick face-lift won’t save Detroit carmakers from bankruptcy.

The carmakers have an uphill battle before them. “We burned off quite a bit of inventory due to the cash for clunkers, but the demand side is still a shelf of its former self,” says Matt Lloyd, chief investment strategist at Advisors Asset Management. He doesn’t anticipate seeing another large, global carmaker shutting its doors though.

2010 Fusion Hybrid

During the near collapse of two out of the three big automakers in Detroit, when things looked most bleak, Ford developed a plan and pushed through the turbulent waters knowing better days were ahead. The plan was not to back down from a previously Toyota hybrid saturated market, but instead launch a full scale attack with cars that deliver competitive MPGs and efficiencies.

The result, cars likes the mid-sized 2010 Ford Fusion and Mercury Milan that compete in MPGs and ride like an American built sedan.

The 2010 Fusion hybrid can achieve up to 41 MPGs and has seen drivers achieve up to 1,440 on one tank of gas, with certain driving techniques used of course. Undoubtedly, the MPG margin continues to shrink as Ford implements newer technologies that save consumers at the pump.

In fact, the margin has been cut so much that consumers on the edge are now turning to the Fusion, a car that claims to be the most fuel efficient mid-sized car on the road. Sure, out of all categories of cars it may not be the most fuel efficient model (the 2010 Prius offers 51 city MPGs), but it does appear to be appealing to a certain niche market.

David Finnegan, Ford’s marketing manager, claims Ford hybrid sales are up 73% and of those buying Ford hybrids, 60% were not previous Ford owners. A huge number considering the hardest customers are often the ones switching from other companies

Best Buy will keep a list of cell phones that are the most compatible with the Sync system for consumers who want to pair the two technologies together. Sync, an in-vehicle system co-developed with Microsoft allows drivers to change radio stations and answer telephone calls through voice activation.

Ford is also considering expanding clinics at Best Buy locations to demonstrate how the cell phone and Sync can be linked together, said John Felice, general manager of Ford, Lincoln and Mercury marketing.

The move continues Ford’s push over the past two years to promote the technology aspects of its vehicles as it looks to attract younger consumers. Chief Executive Alan Mulally will provide a keynote address – for the second straight year – at the Consumer Electronics Show in Las Vegas next year.

Sync currently allow users to access phone calls, browse their MP3 devices, call 911 and get traffic information or directions.

Xiang Dong Yu, also known as Mike Yu, 47, of Beijing, was arrested yesterday at Chicago O’Hare International Airport as he entered the U.S. from China, the Justice Department said today in a statement. He was a Ford product engineer from 1997 to 2007, the department said.

“Theft of trade secrets is a threat to national security,” said Andrew G Arena, FBI special agent in charge, said in the statement. “Michigan, as well as the rest of the United States, is significantly impacted by the auto industry.”

Ford, the second-largest U.S. automaker, last month said it was building a third auto-assembly plant in China as it seeks to increase sales in that nation. China is the world’s biggest auto market so far in 2009, with monthly passenger-vehicle sales in September passing 1 million for the first time.

Last year, Yu sought employment with China’s Shanghai Automotive Industry Corp., using Ford trade secrets, and he eventually was hired by Beijing Automotive Corp., according to the indictment, which was unsealed yesterday. Yu copied about 4,000 Ford documents onto an external hard drive just before his departure from Ford, the department said in its statement.

Yu remains in federal custody in Chicago, the department said. He is charged with three counts of theft of trade secrets, one count of attempted theft of trade secrets, and one count of unauthorized access to a protected computer, according to the indictment. The charges carry a maximum penalty of 45 years in prison and $1.25 million in fines, the U.S. said.

“We are aware of the situation and we are fully cooperating with authorities as they pursue this case,” Marcy Evans, a Ford spokeswoman, said in an e-mail.

Ford, based in Dearborn, Michigan, was unchanged at $7.66 at 4:15 p.m. today in New York Stock Exchange composite trading. The shares have more than tripled this year.

Although it has only been tested in virtual reality, Ford believes it has already achieved breakthroughs in developing algorithms that combine signals from sensors on the car with information relayed from the GPS network. Ford plans on detailing its findings at an electronics engineering conference this week, and will move the project into a physical prototype phase later this year.

Stay tuned for more info on this amazing story!

While the Mustang is no stranger to the track, competing in various drift events  — the Grand-Am Koni Challenge Series, and the SCCA World Challenge Series to name a few — but the famous Ford Mustang has been absent from stock car racing since 1969. Next July will be the first time since then that the Mustang will hit the oval track.

“This truly marks the start of the next era of Mustang Racing. We fully expect this Mustang, with drivers like Colin Braun behind the wheel, to start to enjoy the kind of success so many other Mustang racing programs have enjoyed throughout the last four decades,” said Brian Wolfe, director of Ford North America Motorsports.

“Mustang is a proud and historic brand for Ford. This is a car born to race, and NASCAR is the next logical step for its racing pedigree.”

Even though the Mustang is making a return to NASCAR, the car will only be raced in limited numbers, meaning there will be two different Ford vehicles on the track next season. The very heavily modified Ford Fusion stock cars will still see track time in the Nationwide Series. Keep your eyes peeled next season when the Ford Mustang finally gets back to the stock car circuit.

Well, we can say that for a 4800-pound family vehicle in which you can get a second-row refrigerator—how’s that for a niche?—the twin-turbo Flex is seriously quick. With the 3.5-liter EcoBoost V-6 sending 355 hp and 350 lb-ft of torque through the standard six-speed automatic and all-wheel-drive system, our SEL tester hustled to 60 mph in six seconds flat, covered the quarter-mile in 14.6 at 96 mph, and reached a governed top speed of 123 mph. That’s nearly two seconds quicker to 60 mph and through the quarter than the last Flex we tested with all-wheel drive and the base V-6. Turbo lag is virtually nil, shifts are smooth albeit a little slow, and the exhaust note sounds about the same as that of the naturally aspirated version, so you get a big bump in speed without the boy-racer behavior you might expect from forced induction. The EcoBoost engine still swills regular unleaded, too.

Turbo models also sport a retuned suspension with stiffer springs, revised dampers, and a slightly lower ride height (by 0.4 inch), although all that didn’t really add up to a notable improvement in skid pad grip, which was 0.81 g versus 0.80 g without the revisions. But the changes, combined with optional 20-inch wheels wearing 255-series Goodyear Eagle RS-As, do help the big Flex feel more sure-footed and planted than before. The transmission’s manual mode and steering-wheel-mounted paddle shifters make the drive somewhat more involving when the road gets curvy. However, the Flex still doesn’t feel as dynamic in the twisties as did our long-term Mazda CX9 which remains one of our favorite large, three-row crossovers.

Inside, the manumatic detent in the shift gate and those paddles are the only cues that differentiate EcoBoost models, which mean the search for more power hasn’t harmed the Flex’s expansive three-row cabin and impressive fit and finish. The wide, pillowy front seats rival La-Z-Boys for backside soothing, and driver comfort is further improved for 2010 by the addition of a telescoping function to the tilting steering column. Although our tester lacked the optional second-row captain’s chairs ($650) and console-mounted fridge ($795, Limited models only), there was enough room in the middle row with the three-across bench to erect a jungle gym. Third-row access and comfort are among the best in the segment, but low seatbacks make the space best suited for children or shorter adults. More than 80 cubic feet of cargo space and a flat load floor are available with both rows collapsed, but have patience with the power liftgate, which takes too long to open or close and fights you when you want to open it manually.

Exterior revisions are limited to a small EcoBoost badge on the hatch and exhaust finishers located on each side of the rear fascia. Otherwise, the Mini-Cooper-that-swallowed-a-school-bus styling remains intact, and it’s still refreshingly original in the sea of frumpy minivans and soulless crossovers.

Ford Motor Co. vehicles accounted for six of the top 10 vehicles for customer brand loyalty, according to recent industry analyses from Experian Automotive.

Ford Fusion, Ford Edge and Ford Five-Hundred owners showed the industry’s highest brand loyalty, returning to buy a Ford Motor Co. vehicle 62.4 percent, 57.9 percent and 56 percent of the time, respectively. The Ford Freestyle (51.9 percent) was fifth, the Ford Escape (49.4 percent) was seventh, and the Ford Focus (47.57 percent) came in ninth.

“Ford had an outstanding performance for brand loyalty in the second quarter of 2009,” said Jeff Anderson, director of Consulting and Analytics for Experian Automotive. “With six of the top 10 vehicles for customer brand loyalty, Ford is showing that its products are passing the most important test: turning happy customers into repeat buyers.”

“Brand loyalty is a critical element of success, even survival, in today’s challenged auto industry,” said Scott Waldron, president of Experian Automotive. “The ability to retain customers is an important indicator of product success and commitment to developing long-term customer relationships. As automakers are scrambling to maintain market share, holding onto current customers has never been more important.”

The Ford Explorer is the automaker’s flagship SUV. The unibody platform for the 2011 model is a version being used for the Ford Flex wagon and Ford Taurus/Lincoln MKS sedans. In this prototype of the 2011 Ford Explorer, we can see where it picks up the A-pillars and roofline of the Flex.

The redesigned  Explorer will have a long wheelbase, as seen on this prototype, to accommodate three rows of seats. But the Explorer prototype has more ground clearance than the Flex.

The styling of the 2011 Explorer is based on the Ford Explorer America concept that rolled out at the Detroit auto show in 2008. Keeping a square look for the Explorer helps set it apart from Ford’s crossovers, such as the Edge.

The new Explorer will continue to offer off-road and towing capabilities, although the limits may be diminished with a shift to the unibody platform.

Under the hood will be Ford’s EcoBoost engines, which combine direct fuel injection and turbocharging to wring more power out of smaller displacements. We look for four- and six-cylinder engines to be available in the new Explorer.

Production of the Explorer is likely to shift from the Ford’s truck plant in Louisville to its car plant in Chicago that builds the Ford Taurus and Lincoln MKS.

Ford uses an Electric Orange Ford Focus ST five-door as the basis. It uses the same prototype technology that Ford is developing for its future North American Focus BEV production model in 2011.

With Recaro racing seats, a full roll cage and a five-point racing harness, the battery electric Focus ST is ready for the challenge.

Thanks in part to the battery placement, the Focus ST BEV has a near ideal 50/50 weight distribution for improved handling on the track. The front springs and dampers have been taken from the high performance Focus RS road car. The rear dampers and springs are unique to Jay Leno’s Focus ST BEV.

The car is specifically tuned to perform on the track built alongside The Jay Leno Show studio at NBC in Los Angeles. To help optimize performance, Ford created a similar track at their proving ground in Michigan.

The Ford Focus ST BEV has a range of nearly 80 miles and peak power of 141hp.

Ford said it sold 152,600 vehicles in its 19 primary European markets in September, a 12.3% increase compared with last September, beating an industry sales increase of 2.9%.

“I would say that this September was exceptional,” said Ingvar Sviggum, Ford of Europe’s vice president for marketing, sales and service. “We have now improved market share every month this year.”

For all 51 countries in Ford’s European region, the automaker sold 178,300 new cars and trucks in September, up 5% from the same month last year.

Sviggum said Ford’s performance in the broader region was hurt by a steep decline in sales in Russia, where total industry sales declined 52% in September.

After six weeks of formal negotiations, local union officials have been summoned to Detroit on Tuesday for a briefing on the talks. Ford has said it needs the concessions to remain competitive with cross-town rivals General Motors Co and Chrysler, which went through government-supported bankruptcies.

Ford spokeswoman Marcey Evans said the automaker was continuing to work with the UAW to improve competitiveness.

“We are making progress together, but we consider our discussions to be private and we have nothing to announce,” Evans said on Friday. The UAW had no immediate comment.

Ford opened talks with the UAW on August 25 to address areas where its contract differs from rivals GM and Chrysler. The contract expires in 2011.

Ford global manufacturing chief Joe Hinrichs has said the company would face disadvantages over the long term without concessions from the union.

A UAW local representing Ford workers in Dearborn, Michigan reported on its web site on Friday that a meeting of local leaders is scheduled for Tuesday morning and a national delegation meeting will be held in the afternoon.

In previous contract talks with Ford and other automakers, UAW leadership has used meetings in Detroit to brief local officials on the outlines of tentative agreements shortly before the proposals are brought to ratification votes.

The source spoke on condition of anonymity because the discussions between the UAW and automaker are ongoing.

But Ford officials admit they have made fewer gains persuading would-be buyers that they will feel clever and savvy if they drive off in a Ford—the kind of emotional purchase-triggers that could outweigh the more rational ones.

Starting Monday, Ford is launching a new chapter of its “Drive one” campaign, featuring 15-second spots using real customers talking about the “cool” features of their new Fords. It comes as the car maker plans to boost its fourth-quarter ad budget 10% from a year ago.

“It’s all about what real customers are saying,” said Matt VanDyke, Ford’s director of marketing communications. Ford will air 30 to 40 spots over the next 26 weeks that have a grainy, home-video feel. Mr. VanDyke said they are meant to showcase owners’ testimonials as “believable, honest and authentic.”

“Drive one” has given Ford a consistent theme after years of changing slogans as often as once a year. But the company still needs to find ways to lure import buyers.

At the same time, Ford’s competitors are boosting their ad presence, convinced that the last three months of the year could mark the beginning of a recovery in the car industry.

Slammed by declining sales and disappearing profits, Toyota Motor Co. is preparing a $1 billion marketing effort to prime the U.S. market in the quarter. The world’s largest auto maker needs to turn around its North American business after acknowledging it expects to report a loss in its current fiscal year, which would be its second annual deficit in a row.

The $1 billion plan is 30% to 40% more than Toyota typically spends in the quarter.

Ford’s recent challenge has been to entice buyers to reconsider the brand, a problem Toyota doesn’t face. But as the industry suffered its worst slump in a quarter century and General Motors Co. and Chrysler Group LLC reorganized in bankruptcy aided by government cash, Ford’s message over the past year has also been tailored to remind Americans the car company shunned a bailout.

In a variety of venues from public speeches to Internet postings, Ford began to preach the message that “Ford is different”—a not-too-subtle jab at its cross-town competitors.

But Jim Farley, Ford’s global marketing chief, insisted at the Frankfurt motor show last month that the company’s “Drive one” slogan remains paramount.

Recently, the Dearborn, Mich., auto maker has provided Ford cars and trucks to school fund raisers, hoping to multiply the power of the test-drive experience to several hundred people at each event.

This fall’s lighthearted TV campaign centers on Ford owners who gush about a particular feature—from in-car ambient lighting offered in different hues to keyless entry devices—that makes them fans. The tag line at the end emphasizes the point.

In one, the line is “Ford Flex, wear skinny jeans in one” to highlight one owner who didn’t have to keep bulky keys in his tight pockets.

“They weren’t told that there was a commercial,” said Toby Barlow, chief creative officer at Team Detroit, Ford’s joint venture with WPP’s Detroit-based ad agencies, adding that those appearing granted permission after the filming.

According to Ford’s research, consumers often dismissed Ford vehicles out of hand. But numbers from the second quarter show favorable opinion of the Ford brand has increased by 17% from its low point last year.

The agency said the investigation was prompted by five complaints from consumers who say brake lines were broken as the result of a rust problem with the frame. There were also 15 complaints that “the under body mounted spare tire separated from the rear cross member.”

Steve McNally of York, Me., said he had to sell his 2000 Tundra because the rust was so bad it couldn’t pass the state safety inspection. In a complaint filed on the Web site of the Center for Auto Safety, he said he was driving on Interstate 95 when “without warning, the back end of the truck suddenly lifted up off the pavement while traveling at 65 m.p.h. When I regained control of the vehicle, I looked into the rear-view mirror to see a tire bouncing erratically across several lanes of northbound traffic. Cars were braking and swerving to avoid a collision.”

The investigation is a preliminary evaluation. If the investigators find additional reason for concern the issue would be upgraded to an engineering analysis and could lead to a recall. If no reason for a safety concern is found, it would be ended without further action.

Meanwhile, a review of complaints at the N.H.T.S.A. Web site found no evidence of a problem with rusting frames for some Tundra competitors, the 2000-1 Ford F-150, Chevrolet Silverado 1500 and Dodge Ram 1500.

This could be Toyota’s second major problem with frames. Last year, the automaker announced it would handle a rusting frame problem on about 813,000 1995-2000 Tacomas by extending the warranty to 15 years and unlimited mileage. The automaker said it would buy back rusted-out Tacomas for 1.5 times the suggested retail price for a vehicle in excellent condition as calculated by Kelley Blue Book.

• After a query from N.H.T.S.A., Audi is expanding an earlier recall. It is recalling about 10,200 of its 2006-10 A3 quattro and 2008-10 TT quattro and TT Roadster quattro. The problem is that a fuel-tank ventilation valve may not stay closed during “dynamic driving maneuvers.” This could result in “vehicle jerking” or in the worse case a fuel leak and fire, the automaker said.

Last March, Volkswagen said it would recall about 5,000 R32s for the same problem. Then, records show, late in July N.H.T.S.A. asked the automaker why vehicles sold by Audi with similar systems were not being recalled. In a response, Audi said it then conducted tests and determined “that in rare circumstances” some Audis could also have the problem, so it would recall the additional vehicles.

• The agency has opened an investigation into whether there is a defect with front seat belts on almost 23,500 2004 Saab 9-3s. Investigators said they have had five complaints of seat-belt retractors breaking. “The common scenario involves the driver hearing a noise and the belt suddenly losing tension,” the agency said. In May 2004, Saab recalled about 25,000 of its 2003 9-3s to replace the front seat belts for a similar problem. Only a portion of the 2004 models were recalled.

• Triumph Motorcycles is recalling about 2,800 of its 2005-9 Sprint ST 1050. The company told the agency that some motorcycles may have “a fracture of the rear suspension drag link assembly located at the rear of the machine beneath the single rear suspension unit.”

Melodie Bohuchot, the widow, pleaded with Toyota Motor Corp. Thursday to act quickly to prevent any more accidents.

“I just want Toyota to fix the problem now. Don’t wait,” Bohuchot, 30, told The Associated Press in a telephone interview from Sacramento, California. “How many people have to die before they take this seriously?”

Earlier this week, Toyota informed the U.S. government it will be sending letters by first-class mail to owners of the best-selling Camry, the Prius hybrid and other models to remove floor mats on the driver’s side and not replace them. It was the second time in a little over two years that Toyota has acknowledged problems with floor mats in the U.S.

Toyota said the gas pedal may get stuck when the floor mat is unsecured or incompatible, making it difficult to stop and potentially causing a crash that could result in serious injury or death.

Toyota has also distributed a statement of warning through the media and on its Web site. It expects to begin sending the letters in late October and complete the effort in December.

But Bohuchot was worried people may find out too late, and urged Toyota to get the word out immediately.

Toyota spokesman Paul Nolasco said it takes time to reach every customer. “There are a lot of customers involved. Our objective is to contact them as soon as possible,” he said.

The latest recall — Toyota’s biggest in the U.S. — followed a a high-speed crash in August involving a 2009 Lexus ES350, that killed California Highway Patrol Officer Mark Saylor, 45, his wife, 13-year-old daughter and brother-in-law.

Johnson, 39, was killed July 26, 2007 — the same day he got a job as a dispatcher for a taxi company, and appeared on track to turning his life around after years of drug problems and being in and out of jail on assault charges.

Johnson’s Honda Accord was hit from behind on a highway near San Jose, California, by a 2007 Toyota Camry, whose accelerator had gotten jammed by a Toyota-supplied floor mat, according to court documents.

The Camry was speeding out-of-control at up to 120 miles (190 kilometers) per hour, and slammed into Johnson’s vehicle, killing him instantly. The car burst into flames, burning his body beyond recognition, court records say.

Toyota recalled the floor mats at that time. Charges against the driver of the Camry were dropped. Bohuchot said she bore no ill feelings toward him.

Bohuchot sued Toyota in the Santa Clara County Superior Court in California, and reached a settlement with the world’s biggest automaker in 2008. Bohuchot and her lawyers declined to disclose the amount.

Toyota declined comment on past litigation.

Last week, Toyota President Akio Toyoda apologized for the worries the floor mat problems were causing for those who had bought Toyota vehicles believing in their safety.

“Four precious lives have been lost,” Toyoda told reporters in Tokyo of the August crash. “I offer my deepest condolences.”

Toyota says floor mats on the driver’s side must be removed from the 2007-2010 model year Toyota Camry, 2005-2010 Toyota Avalon, 2004-2009 Toyota Prius, 2005-2010 Tacoma, 2007-2010 Toyota Tundra, 2007-2010 Lexus ES350 and 2006-2010 Lexus IS250/IS350.

Mohinder Mann, Bohuchot’s attorney, said her client has nothing to gain by speaking out but was doing what she thought was the right thing.

Bohuchot said her three children — aged 8, 7, and 5 — still write letters to their father, attach them to balloons and let them go into the sky.

“He was a loving caring person. He was my best friend. He was a good father,” she said, her voice choking. “He was good person. He didn’t deserve to die.”

The first F-Series, called the F-1 (half ton), F-2 (three-quarter ton), or F-3 (Heavy Duty), were introduced as 1948 models. A few “modern” improvements over Ford’s previous pickups were smoother body contours, integrated headlights, a bigger cab and a one-piece windshield. Two engines were available: a 226-cubic-inch inline six rated at 95 horsepower and a 239-c.i. V8 that put out 100 horses.

1951 brought a new base engine, a 215-c.i. inline six with 101 horsepower.

The F-Series continued through 1952 with some cosmetic revisions (such as different grille inserts) as well as mechanical upgrades (such as a waterproof ignition) to improve performance and durability.

1953-1956

A somewhat sleeker look appeared for 1953, with the hood flowing into the grille and front fenders, as opposed to sitting on top of them. The consumer-oriented pickups were now called the F-100 and F-250. Heavy-duty versions were renamed F-350.

For 1954 the “Mileage Maker” inline six grew to 223 c.i. and put out 115 horsepower. The 239 “Power King” V8 kicked out 130 ponies. A “Driverized Cab” option provided such luxuries as armrests, a dome light, a cigar lighter and sun visors. Minor cosmetic updates, mainly in the grille area, continued through 1956. Horsepower also increased, with the six rated at 137 horsepower and the V8 (increased in size to 272 c.i.) pumping out 173 horsepower.

1957-1960

A modern restyle occurred for 1957 with a lower hood that was now flush with the front fenders. Two body styles were available, the traditional Flareside with its separate rear fenders and a new Styleside model with smooth sides that lended a more unified appearance.

A new grille debuted for 1958.

1959 saw a larger V8 (292 c.i., 186 horsepower), the availability of four-wheel drive and two-tone interior trim along with the traditional front-end freshening. The clean ‘59 grille gave way to a heavy, bug-eyed scheme for 1960.

1961-1966

1961 brought a complete redesign. The F-Series went back to single headlights and the trucks were lower and wider than before. Flareside and Styleside boxes continued to be available, and the Stylesides had a one-piece cab and box for a smoother look.

Yearly grille changes again took place, and in 1965 three new engines debuted: 240- and 300-c.i. inline sixes, with 150 and 170 horsepower, respectively, and a 352-c.i. V8 with 208 horses.

1967-1972

A new, smoother body style debuted for 1967 that also provided a roomier cab with more glass area. Three trim levels; base, custom and Ranger were now offered. The Ranger had carpeting, plusher seats and chrome exterior trim (such as the grille) standard.

In 1968 functional improvements came about: a new, 360-c.i. V8 replaced the 352, and a 390 V8 was now available. F-100 models featured a new, “Mono-Beam” front suspension with coil springs instead of the leaf springs, which the F-250s still had.

A Crew Cab (four-door pickup truck) was offered for 1969.

1970 offered F-Series buyers a choice of four trim levels: Custom, Sport, Ranger and the top dog Ranger XLT. A 302-c.i. V8 with 220 horsepower was now optional in addition to the former engine choices.

Grille designs changed slightly to update the 1971 and 1972 models.

1973-1979

Ford’s popular pickup was updated and improved in many ways for 1973. A beefier frame, a roomier cab, an optional 460-c.i. V8, an optional automatic transmission and revised.front suspension were the more notable functional changes. A new body topped these changes and featured a concave groove that ran the length of the body and a cleaner grille with integrated turn signals.

The big news for 1974 was the introduction (late in the model year) of the extended cab version of the F-Series, called the SuperCab. A SuperCab was available only with the Styleside body and could be fitted with either a bench seat or a pair of jump seats in the rear compartment.

The F-150 debuted for 1975. A half-ton pickup, the F-150 filled the gap between the F-100 and F-250 as it was a bit more “heavy duty” than an F-100 though considerably less so than the F-250. In that year, more than one-third of F-Series sales were comprised of the new F-150.

Aside from minor facelifts in the grille area, the F-Series continued through 1976 with little change.

Engine choices were revised for 1977 with 351- (163 horsepower) and 400-c.i. (169 horses) V8s replacing the 360 V8 option.

For 1978, the 300-c.i. inline six (114 horsepower) became the standard base engine and square headlights debuted (on all models except Custom). The luxurious Ranger Lariat was introduced that year as well as a new, more massive grille.

1979 brought square headlights for all F-Series trucks.

1980-1986

Entering the eighties, Ford’s 1980 trucks sported an evolutionary, more aerodynamic redesign. The face of the hood was slanted rearward, the grille had a cleaner look and the body sides were more chiseled with a flatter accent groove. The SuperCab’s quarter windows were split for a twin window effect. A bonus of the revamped interior was 10 percent more legroom. Flareside (regular cab only) and Styleside (regular or SuperCab) styles were again offered and the big 460 V8 was dropped from the option list. The four-wheel-drive versions adopted an independent, coil-sprung front suspension design called “Twin-traction beam.”

1982 saw the “FORD” letters on the hood replaced by the blue Ford oval in the grille center and the fitment of new, “lubed for life” ball joints. The Ranger name was dropped from trim lines, as it would be the moniker for a new compact pickup that Ford introduced later that year. F-Series models now consisted of base, XL, XLT and XLT Lariat.

1983 saw engine offerings increased to again include the 460 V8 (or 7.5-liter, as now engine sizes were referred to in liters) with 245 horsepower and a 6.9-liter diesel V8. The diesel had less horsepower (170 horses) than a gas engine of equal size but a lot more torque for heavy hauling and towing duty. And this was the last year for the F-100, as the F-150 became the new base truck for 1984.

No changes occurred for 1985 and 1986.

1987-1991

After being the best-selling vehicle (that’s right, not truck but vehicle, which includes cars and trucks!) for nine straight years, Ford made evolutionary changes to the F-Series in 1987. A new front end featured flush headlights (which required only the bulb, not the whole headlight to be replaced), wraparound parking lights and a simple grille with 12 rectangular openings. New front fenders, hood and bumper added to the new, more streamlined look. A revised instrument panel had more legible gauges and a bigger glove box. Maintenance was made easier via an easy-access fuse box and simplified belt replacement for the alternator, power steering pump and A/C compressor. Safety took a leap forward with antilock rear brakes, as Ford was the first company to make this feature standard on trucks. The 4.9-liter inline six received fuel injection and a healthy 20 percent increase in output, for a total of 150 horsepower. And later in the year, the 7.5-liter V8 also benefited from the fitment of fuel injection.

1988 saw the SuperCab offered in a shorter (139-inch versus 155-inch) wheelbase and all engines were now fuel injected, including the 5.0- and 5.8-liter V8s. The Flareside body style was dropped. Horsepower for the various engines stood at 150 for the 4.9-liter inline six, 185 for the 5.0-liter V8, 210 for the 5.8-liter V8, 230 for the 7.5-liter V8 and 180 for the now 7.3-liter (up from 6.9 liters) diesel V8. Four-speed manual gearboxes were replaced with five-speed units.

A new silver and black grille replaced the all black unit for 1989 Custom and XL models. SuperCab models with the optional captain’s chairs had a tilt and slide feature on both sides that afforded easier ingress and egress for rear seat passengers. Later in the year, automatically locking front hubs (on F-150) came on line as standard equipment, and manual locking hubs were made optional for those who preferred them.

1990 was the year of the Package. A heavy-duty service package, ideal for snowplow operators, consisted of a heavy-duty battery, high-capacity radiator and skid plates. And a sport appearance package included fancy wheels and a large tape stripe adorning the pickup’s flanks. An electronically controlled, four-speed unit was now offered which promoted better fuel economy and reduced engine wear.

Automatic hub locks were made standard for F-250 and F-350 trucks for 1991. And as with the F-150 the year before, the manual hubs were optional. Helping to make the transition from two-wheel to four-wheel drive even easier was an optional (on models with the 5.0-liter V8/automatic overdrive transmission) “Touch-Drive” electronic transfer case control that put the truck into four-wheel drive with the press of a dash-mounted button. Two-sided galvanized steel was adopted for the hood, tailgate and doors to help fend off body cancer (rust). The oddly named “Nite” package debuted this year as an option for the XLT Lariat and featured blackout trim, alloy wheels with 235/75/15 white-lettered tires, sport suspension and the obligatory decals.

1992-1996

Taking the aerodynamic approach a step further, the 1992 F-Series was facelifted with a smoother nose that had the front light clusters and bumper ends angled back slightly. “Aero” mirrors and a revised tailgate completed the fresh look. A new instrument panel contained easier-to-use controls and a power point. Plusher seats and door trim made the interior more inviting, and SuperCab models offered a large, optional console in addition to standard three-point rear seatbelts. And after a four-year hiatus, the Flareside version returned in 1992.

For 1993 the Custom model was dropped, as the XL became the new base model. The Sport Appearance was also axed. Raising the seat cushion and adding padding improved rear seat comfort in SuperCab models. The aptly named Lightning, with its tire-smoking 240 horsepower, 5.8-liter V8 joined the popular F-Series lineup. More a boulevard brawler than workhorse, the Lightning was available only in a standard cab, two-wheel-drive configuration.

Safety upgrades took place for 1994 when a driver’s side airbag (except on heavy-duty models), side door beams and a high, center-mounted third brakelight debuted. A couple of new options showed up this year: a CD player and a 40/20/40 front seating arrangement that had a center seat which converted to an armrest with a built-in storage compartment and cupholders.

Still on top of the sales charts as the No. 1 selling vehicle, the F-Series brought a new model into the fold for 1995: the Eddie Bauer edition. Named after the outdoor gear and apparel company favored by yuppies, the Eddie Bauer F-Series was the most luxurious Ford pickup available, with features such as two-tone paint, air conditioning, power everything, stereo with cassette, alloy wheels and the 40/20/40 front seat. A new 7.3-liter, “Power Stroke” turbodiesel became optional on F-250 Heavy Duty pickups. Matched to a four-speed automatic gearbox, the new engine put out 210 horsepower and 425 foot-pounds of torque, making it ideal for heavy hauling and towing applications.

Two models were dropped and two were added for 1996: F-150 Flareside and Lightning models met their demise and shorter-wheelbase versions of the F-250 Heavy Duty SuperCab and Crew Cab debuted. The short-wheelbase versions had a bed length of 6.75 feet versus the 8-foot bed of the longer-wheelbase trucks.

Current Generation

Ford took a risky route and went for a very different look when it redesigned its F-150 in 1997. The best-selling vehicle, let alone truck, in America for 13 years now sported a smooth jellybean-like style that stands in sharp contrast to the chiseled box look that endured for so long.

A trio of new engines are charged with propelling the F-150: a 4.2-liter V6 with 202 horsepower and 252 pound-feet of torque, a 4.6-liter V8 rated at 231 horses and 293 lb-ft and a 5.4-liter V8 pumping out 260 horses and a stout 350 lb-ft of twist. (Note: Engine specifications are for 2002 models.)

As before, a dizzying variety of F-150s are offered. Regular cab, SuperCab (extended cab) and SuperCrew (a crew cab introduced for 2001) body styles cater to passenger-carrying requirements. A choice of standard or Flare side bed styles are offered (except on SuperCrew — standard bed only) and trim levels consist of base XL, midlevel XLT and plush Lariat. In addition to those, the Lightning made its tire-scorching comeback in 1999 sporting a supercharged 360-horsepower 5.4-liter V8, high-performance suspension, 18-inch wheels and a quarter-mile time of around 14 seconds. Another special F-150, the Harley-Davidson edition came along the following year. The Harley edition (based on a 2WD SuperCab) came with black paint with orange accents, huge (20-inch) wheels, special leather interior trim, and, of course, plenty of badges.

Leaving no stone unturned, Ford later brought out a couple of additional trim levels for the SuperCrew: a loaded “King Ranch” edition with two-tone paint and a cabin that would make a Texan proud with its abundance of saddle leather trim, and the latest Harley-Davidson edition that again features 20-inch chrome wheels wearing fat 275/45R20 tires, special black paint scheme with flame striping and obligatory Harley emblems and a black leather interior.

The other F-Series models, the 250 and 350, soldiered on with the pre-1997 body style and platform until 1999, when the heavy-duty brutes were completely revamped. A massive grille and a more traditional squared-off design separate these big boys from their smaller F-150 brother. Three body styles; regular cab, SuperCab and Crew Cab are available in the traditional Ford truck trim levels dubbed XL, XLT and Lariat.

Moving the F-250 and F-350 trucks are the same 5.4-liter V8 available in the F-150 and a pair of stump-pullers; a 6.8-liter V10 with 275 horsepower and 410 lb-ft of torque and a 7.3-liter turbodiesel V8 with 235 horses and a walloping 500 lb-ft of twist.

Ford chose to quietly mark the F-150’s 50th anniversary in 1998. Very quietly, as the celebration consisted chiefly of a 50th anniversary decal affixed to the windshield. An STX package became available on XLT 2WD models and featured 17-inch alloy wheels and a color-keyed grille. The top-dog Lariat now had a leather-wrapped steering wheel and turn signal indicators incorporated into the side mirrors.

A few years after the revamping of the light-duty trucks, the heavies got their turn for 1999. Unlike the rounded styling of their F-150 and F-250 siblings, the F-250 and F-350 Super Duty versions had prominent grilles, angular body lines and “stepped-down” front side windows, all of which reinforced their big truck status. Regular Cab, Super Cab and Crew Cab body styles were offered, as was a variety of power plants that included the Power Stroke turbodiesel V8.

Y2K, otherwise known as the year 2000, brought the Harley-Davidson edition of the F-150. Fitted with special leather trim, this special SuperCab Flareside 2WD also had black paint with orange accents, the 5.4 V8, massive (20-inch) chrome wheels and plenty of Harley emblems festooned about the body and cabin. The Super Duty trucks picked up ABS brakes (in Lariat trim) along with power windows and locks as standard for the XLT trim levels.

A crew cab body style, dubbed “SuperCrew,” came aboard for 2001. The Harley-Davidson edition adopted the SuperCrew body this year, and a new top-o’-the-line trim debuted, called King Ranch. Named after a huge Texas cattle ranch, not a new salad dressing, the King Ranch featured a handsome leather interior that called to mind a Western saddle. Four-wheel ABS became standard across the line as did power-adjustable pedals on the Lariat models. A trio of new options (heated front seats, power sunroof and rear-seat entertainment system) became available late in the year.

The Harley-Davidson edition added some bite to its bark for 2002, in the form of a supercharged version of the 5.4-liter V8 that sent 340 horsepower to the rear wheels. Flame-styled pinstriping and a billet-style grille insert further distinguished the H-D F-150 from its predecessors and siblings. A SuperCab version of the King Ranch debuted as did an FX4 off-road option package (for Lariat and XLT 4×4s) that featured Rancho shocks, skid plates and unique accents.

Knowing that an all-new F-150 was just around the corner, Ford brought out a “Heritage Edition” for 2003 that featured special wheels, paint scheme, pinstripes and lower valance panel. Also bowing this year was a revamped STX edition geared toward youngsters that grouped a sound system with MP3 capability, a monochromatic body treatment and, of course, different wheels. Also helping to carry the F-150 through its last year of this generation were upgrades to the upper trim levels, namely faux wood trim and an in-dash six-disc CD changer for the King Ranch as well as a Pioneer audio system for the Lariat.

Ford, the only large U.S. automaker not to reorganize in 2009 under a government-supported bankruptcy, has increased its market share in the United States this year as rivals General Motors Co GM.UL and Chrysler stumbled toward bankruptcy.

As Ford continues to bring on small and mid-sized vehicles “I think we have room to grow, profitably of course, in the United States,” Mulally said in a meeting with industry analysts that was webcast.

Ford also has room to grow in Russia and Europe, he said.

“Two very large mature markets, so growth will be steady, but not real dramatic,” Mulally said of the U.S. and Europe. “If you look at Asia-Pacific we have a lot of room to grow.”

Ford, which has posted losses totaling about $30 billion for the years 2006 through 2008, expects to be at least break-even in 2011 consistent with a gradual recovery in the economy that would also bring an increase in industry sales.

The automaker expects U.S. auto industry sales to slump in September to levels seen earlier in 2009 with the U.S. government “cash for clunkers” incentive program exhausted.

Mark Fields, Ford’s president of the Americas, said he expected September U.S. auto industry sales to range from an annualized rate of 9 million to 9.5 million vehicles.

Ford typically includes medium and heavy duty trucks in its U.S. auto industry sales forecasts.

U.S. Environmental Protection Agency (EPA) ratings for the Ford Fusion Hybrid are 41 miles per US gallon (5.7 L/100 km; 49 mpg) for city and 36 miles per US gallon (6.5 L/100 km; 43 mpg) for highway. When driving on electric-only mode (EV mode) the Fusion can achieve 47 mph and up to 2 miles of continuous EV driving. In city driving a full tank delivers 700 miles (1,126.5 km).

History and development

The hybrid electric version of the Fusion was announced at the 2005 North American International Auto Show, along with the public introduction of the original 2006 Fusion. At that time Ford announced that the hybrid version was scheduled to be introduced in early 2009 for the 2010 model year, for a suggested retail price of US$27,270. The new Fusion Hybrid and Fusion Sport officially debuted at the Greater Los Angeles Auto Show in November 2008.

The Fusion Hybrid was made available for press testing in December 2008 and launched to the U.S market in March 2009. During the same month two other new hybrid models also came on sale, the Honda Insight and the Mercury Milan. During the few days that were available to the public, Ford’s new Fusion and Milan hybrids sold a combined 451 units, representing 3.0% of all Fusion and Milan models sold in March 2009.

According to Ford, the vehicle was built to have a fuel efficiency of 41 mpg in the city and 36 mpg on the highway by EPA standards. On December 2008, Green Car Congress staff reported they had obtained in-city mileage of 43.1 mpg on the streets of Los Angeles. In addition, a Los Angeles Times reporter informed in December 2008 that he had obtained 52 mpg in mixed city-highway driving with little difficulty.

The Fusion is the first new hybrid vehicle the Ford brand offered in five years, and is the second hybrid vehicle after the Ford Escape Hybrid. The Ford Fusion and Mercury Milan hybrids join the Saturn Vue Green Line Hybrid for Mexican-built hybrid vehicles.

 Design and technology

Fuel economy

The U.S. Environmental Protection Agency (EPA) has rated the fuel economy for the 2010 Fusion hybrid at 41 miles per US gallon (5.7 L/100 km; 49 mpg) city, 36 miles per US gallon (6.5 L/100 km; 43 mpg) highway. This model gets better fuel economy than the Toyota Camry Hybrid (32 miles per gallon city, 33 highway), the Nissan Altima Hybrid (35 miles per gallon city, 33 highway), and the Chevrolet Malibu Hybrid (26 miles per gallon city, 34 highway), viewed as its competitors in the mid-size sedan segment. However, the 2009 Toyota Prius still has the best fuel economy in vehicles considered mid-size by the EPA with 48 miles per gallon city and 45 highway.

On a single-tank publicity stunt conducted on April 2009, a Fusion Hybrid managed 81.5 miles per US gallon (2.89 L/100 km; 97.9 mpg) on a 1,445.7 mile trip.

Tax credit

The Fusion Hybrid qualifies for a maximum hybrid tax credit of US$3,400 if purchased by March 31, 2009. The credit drops to US$ 1,700 if purchased by September 30, 2009, to US$850 if purchased from October 2009 and March 31, 2010, and is scheduled to phase out by April 1, 2010.

Ford second-quarter results were just one more sign that the automaker is riding a wave — better cars, a positive image that respects its traditions and, of course, the bankruptcies that befell its two U.S. competitors.

In afternoon trading, Ford shares were up 9.7% at $7. For the year, they are up 67%.

“The results today show we are making progress on customer satisfaction, revenue, margins (and) fundamental restructuring,” said CEO Alan Mullaly on an earnings conference call.

“Consumers are much more aware of Ford, moving to consider and buy Ford: they really appreciate the full product line,” Mullaly said. “They believe that Ford is really building a strong business.”

Mullaly is “more confident than ever that we have the right plan” and reiterated that Ford expects to be profitable in 2011, but resisted when an analyst questioned whether the profits might come sooner, saying, “This is still a very fragile economy.”

While Ford said Thursday that it expects economic improvement in the second half, UPS(UPS Quote) was saying it sees no sign of improvement during the current quarter.

Ford’s outlook is not without headwinds. “What we are not committing to is (that) third quarter will be sequentially better than second quarter,” said CFO Louis Booth. “We are not guaranteeing we will be able to meet the sequential improvement.”

Booth said capital expenditures, down a bit in the second quarter, will rise in the current quarter, and noted that cash flow will decline in the second half, relative to the first half. Ford Credit had a strong second quarter that is unlikely to be replicated in the near term, he said, Additionally, Ford has increased production levels, betting on a recovery. “If we don’t see recovery, we’d be looking at production again,” Booth said.

If the 2010 Ford Transit Connect doesn’t evoke in spirit, if not appearance, the 1960s Volkswagen Bus, you’re too young, you were too stoned to remember or you have no imagination.

PHOTOS/AUDIO: Ford Transit Connect with Healey’s comments
CHAT TRANSCRIPT: James Healey answers your questions

Ford says the official reason for modifying the Euro-market TC for the U.S. is to plug a hole in the market. It’s for business people who don’t want the cost or size of a big van but need something more utilitarian and robust than a minivan or hatchback.

But — wink, wink, nod, nod — there just might be a few surfers, artists, college students, vagabonds and unrehabilitated hippies to broaden TC’s appeal.
FIND MORE STORIES IN: Ford Motor Company

Primitive by today’s hoity-toity standards, perhaps, but a delight all 480 miles from USA TODAY HQ in McLean, Va., to Knoxville, Tenn. A hefty bunch of that was in rain and wind so vicious that the radio station began yelping for everybody to get off the road in that “we’re all gonna die” way of weather warnings.

Transit Connect pressed on, its wipers flicking away rain as if the storm were a shower. The low center of gravity more than compensated for the tall silhouette to keep the TC stable in the fierce crosswind. Dry-road handling was good, too.

The four-cylinder engine, based on what’s in the Focus compact car, should have been unsuitable in the hills and against the wind, but it just growled louder and maintained. True, a five-speed automatic instead of the Transit Connect’s four-speed would have calmed the frantic up/downshifting. But what’s a bit of shifting back and forth between friends?

The work-truck cloth seats were remarkably comfortable even though (perhaps because) they lacked uncounted ways of adjusting. Less is more.

A ceiling-mounted shelf designed for invoices, computers, order pads and the like was perfect for maps, snacks and other road-trip detritus.

Lightly laden, TC rode smoothly. Usually, cargo haulers need weight aboard to ride smoothly.

Quiet for its ilk. None of the expected wind howl from such a bluff face, nor sounding-chamber resonances from the open, uninsulated cargo space.

Rear doors opened a conventional 90 degrees, or swung all the way around against the sides, where magnets held them. Good for loading docks.

Space between fender wells is 48.1 inches, just enough for standard-size building materials such as drywall — but not with doors closed; only 6 feet of fore-aft cargo room, not the 8 feet you’d need.

Totes up to 1,600 pounds, as much as a full-size pickup. Holds up to 135 cubic feet of goods, more than a full-size SUV. A quirk of its European-market origins: The hood is locked. Swivel the Ford logo on the grill to expose the lock, use the ignition key to open it. A security feature.

Ford-anointed suppliers sell a staggering array of racks, bins, shelves and other holders so the van’s just so when you pick it up at the dealership.

Transit Connect did have some issues:

•Rear visibility was terrible, and that’s with optional side and back windows (windowless is standard). A backup camera would be a useful option.

•The add-on Bluetooth module was a tacky hunk of plastic hanging from the steering column, in the way of other controls.

•The optional navigation system was terrible. Pronunciation sometimes was undecipherable. “Ravensworth” came out “raffenurn,” for instance. Instructions were late, more validation than guidance: “Turn right.” Ah, thanks Navi Girl; glad we made the correct move there.

Test vehicle had the optional second row of seats (no third row available). OK for kids, tight for adults.

Customization possibilities, commendable fuel economy, affable driving personality: Transit Connect is not just a tradesperson’s delight but a potential cult machine.

2010 Ford Transit Connect

•What? Small panel van for tradespeople who want better mileage, lower cost, trimmer size than a big van or truck, and more utility than a minivan, small wagon or hatchback. Front-drive cargo vehicle with sliding side doors, swing-open rear doors, built on a dedicated commercial-truck chassis, Ford says, not a converted car chassis.

•When? Went on sale June 23.

•Where? Made at Ford Otoson factory in Kocaeli, Turkey, a joint venture between Ford Motor and Koc, a Turkish industrial conglomerate.

•Why? Ford didn’t see anything else like it in the U.S., decided to modify the Euro-market Transit Connect and fill a need.

•How much? Starts at $21,475 including $695 shipping. Loaded test vehicle, equipped with a second row of seats, side-door windows, navigation and other passenger-vehicle accoutrements, was about $24,000.

•How powerful? 2-liter, four-cylinder engine rated 136 horsepower at 6,300 rpm, 128 pounds-feet of torque at 4,750 rpm, mated to four-speed automatic transmission.

•How big? 180.7 inches long, 70.7 inches wide, 79.3 inches tall on a 114.6-in. wheelbase. Weighs about 3,400 lbs. Carries up to 1,600 lbs. (as much as a full-size pickup), has as much as 135.3 cubic feet of cargo space, depending on configuration (more than a full-size SUV).

•How thirsty? Rated 22 miles per gallon in town, 25 mpg on the highway, 23 in combined driving (4.35 gallons/100 miles).

Test vehicle recorded 19 mpg in suburban driving (5.26 gal./100 mi.), 18.4 mpg on the highway (5.43 gallons/100 miles).

All driving done with light load, heavy foot. Highway test included hilly terrain and strong crosswind.

Burns regular, holds 15.4 gallons.

•Overall: Wonderful. Makes you want to open a shop so you can have one for deliveries.

“We had another strong month in progress before the Cash for Clunkers program started,” said Ken Czubay, vice president for marketing and sales, in a prepared statement.

Total sales in July, including fleet, were 158,838, up 2% from the same month a year earlier. Retail sales rose 9% to 118,197.

Sales of the Ford Escape, up 94%, Mercury Mariner, up 71%, Ford Fusion, up 66%, Ford Ranger, up 65%, and Mercury Milan, up 60%, helped boost the automaker’s numbers. Ford hybrid sales rose 323% to total 5,353.

The company said two new products, the 2010 Ford Taurus and the Transit Connect, were first delivered at the end of July. The Connect, a small, fuel-efficient van, is the first One Ford global vehicle to be sold in the U.S.

Ford shares recently were trading up 6.2% to $8.50.

The Car Allowance Rebate System (CARS) was signed into law by President Obama on June 26 . Under the CARS program, also called the “cash for clunkers” bill, your older car may qualify for a vehicle voucher worth thousands of dollars on a more fuel-efficient new car. The program should begin around July 23 and is available until November 1, 2009.

Here are some answers to common questions about the CARS program. You can use the tools on AutoTrader.com to help you find the right high-MPG vehicle to make the most of the “cash for clunkers” law.

What separates Crissy (what she prefers to be called at work) from other engineers is that it seems as though she was born be where she is today; the Vehicle Dynamics Development Engineer of the 2010 Ford Taurus. The Taurus goes on sale this summer, and it is arguably the most important vehicle Ford announces this year.

Gallery: Our Ride with Rodriguez
& 2010 Ford Taurus SHO

This thirty-something Puerto Rican is the only woman at Ford Motor Company to have achieved her status as a Vehicle Dynamics Development Engineer. The job is equal parts engineer, race driver and vehicle psychologist.

“As an engineer, I need to make sure the car is safe,” Rodriguez said. “As a (race) driver I have to make sure the car handles well. And then I have to tune the car to have the right personality for being the latest Ford.”

She goes on to define what how cars exhibit personality.

“Some cars have a more relaxed personality, so everything about the way they drive is soft and slower to react,” she said. “Fords have a DNA that is sportier, more fun to drive, more responsive, more alive, so they need to feel that way.” You’ll be able to tell whether Rodriguez has done her job well when you get behind the wheel of the new Taurus.

While we didn’t get to drive the new Taurus, we did get an opportunity to ride in the high-performance Taurus SHO model at Ford Motor Company’s Dearborn, Michigan proving grounds (a special test track for developing new cars and trucks). More on that experience later.

Preparing For Success
Rodriguez told us about her background in the automotive business, “I’ve grown into this job because Ford’s engineering group works on a model that emphasizes ‘technical maturity.’” For Rodriguez, this means that because she first possessed the technical background for the job, she was then able to develop and prove her practical skills on her way to becoming one of the company’s most influential engineers. She’s been with Ford 12 years.

Matter-of-factly, Rodriguez elaborates. “In this job, your body has to become a precisely calibrated instrument that can understand what the car’s mechanicals are doing,” she said. “It takes a while to tune your body, but I’ve been working on this particular chassis for eight years, so I really know what it’s capable of and how to make it respond.”

While the 2010 Taurus is an all-new vehicle, it is related to other Ford products (the Lincoln MKS, Ford Flex, and the outgoing Ford Five Hundred/Taurus). Rodriguez also contributed to the ride and handling on those vehicles, a task that began with the Ford Five Hundred back in 2001.

Born to Cuban parents who fled Castro’s communist regime, Rodriguez grew up in Puerto Rico.

“I learned to be a methodical thinker from my father, who was a chemical engineer,” she said. “But it was my mother who was the mechanical one. She encouraged me when I was growing up to figure out how things worked, and she never got too mad at me when I put things back together and still had a few pieces left over.”

While Rodriguez worked on her motor skills, another aspect of her life laid groundwork for her future success.

“I come from a very athletic family,” she said. “My grandfathers and uncles played Olympic basketball, so we were always active. I can remember that when my brother enrolled in little league baseball, he didn’t want to join without a friend, so my mother enrolled me with him. I was the only girl in the league.”

We doubt Rodriguez throws like a girl. And if you thought we’d make a joke about her driving like a woman? Think again. We doubt anyone could keep up with her on a track, male or female.

Regarding her education, her Bachelors in engineering came from Georgia Institute of Technology. She also earned a Masters from The University of Michigan in Ann Arbor. Mechanical engineering is a heavily male-dominated career path, but this hasn’t slowed Rodriguez’s progress. It is obvious that Rodriguez knows how to operate with the guys, without becoming one of the guys.

Certainly, Rodriguez doesn’t look like a mechanical engineer: pocket protectors and out-of-style glasses don’t seem to be part of her wardrobe. Actually, she looks like she could be Indy Racing League driver Danica Patrick’s sister. This comparison is fitting given the ride we were about to experience.

Spicing Up The Bull
Rodriguez explained the process used to give a car a dynamic personality.

“First, we start with models generated by Computer Aided Engineering,” she said. “These give us starting points for (suspension) spring rates, dampers, bar thicknesses, etc. After that, everything we do is by the seat of the pants. That’s why it’s so important to have a feel for what’s happening at the road, because you end up becoming a cook who is perfecting a recipe by trial and error. We add more of this or take away some of that. Each change is designed to wake you up and make you feel alive behind the wheel, just like eating a great meal.”

The 2010 Ford Taurus has four distinct suspension calibrations; they are mechanical recipes, if you will. There’s one each for the front-wheel-drive Taurus, the all-wheel-drive Taurus, the all-wheel-drive high-performance SHO and the ultimate SHO fitted with the Performance Package. Rodriguez noted that each model has unique suspension calibrations that are based on the specific model’s equipment and personality.

For example, the two non-SHO Taurus models must have the same feel even though one carries the additional weight of the all-wheel-drive system.

“The Taurus needs to be comfortably engaging,” she said. “It can’t be stiff like a (Mustang) Shelby GT500, but it also can’t be too soft like a Toyota Camry. We wanted to keep most of the suppleness of the Lincoln MKS sedan, but make it more responsive.”

The move from the regular Taurus to the SHO edition is dramatic. This is where about 10-percent more chili powder and cayenne pepper get added to the recipe. Nearly every tunable suspension component is changed between the base model and the SHO, resulting in a much more dynamic drive.

The step up from the SHO to the SHO with the Performance Pack tightens everything even further (more chilies), including another 20-percent on the dampers (those would be struts and shock absorbers to non-engineers), then 9-percent stiffer rear springs, and a thicker rear anti-roll bar. These changes make the most performance-oriented SHO a more neutral handling car that drivers should find exceptionally agile and immediately responsive.

Riding Shotgun In The Ford Taurus SHO
Rodriguez was only too willing to take us for a ride to demonstrate what she had been talking about, “This car is really my pride and joy. I think you’re going to like it.” With that, she moved the floor-shifter into Sport mode and took off.

Riding along in the passenger seat, we couldn’t help but feel how effortlessly the twin-turbocharged EcoBoost engine took the full-size Taurus well above legal speeds. Unlike turbocharged cars from decades past, the SHO did not seem to exhibit any turbo lag. And the turbochargers sounded quiet (no turbo whine or unrefined popping and hissing). The EcoBoost is efficient, too, although EPA numbers aren’t yet available.

From where we sat, the ride was firm but not harsh, even as Crissy drove us over test roads that were intentionally bumpy and pocked. By far, the most fun was riding along on the handling course. This smooth, serpentine ribbon features undulating hills and off-camber curves. Normally, one wouldn’t expect a full-size car to be at home here. The steering would be too slow and the handing ponderous. We weren’t behind the wheel, but we got the impression that the Taurus SHO is no traditional full-size car.

Gallery: Our Ride with Rodriguez
& 2010 Ford Taurus SHO

The SHO’s heavy-duty six-speed gearbox felt quick and smooth from a passenger’s perspective, and as Rodriguez increased engine speed, the growl came from under the hood, not the exhaust. Rodriguez confirmed that the turbochargers absorb much of the exhaust noise.

The faster Rodriguez drove, the smaller the Taurus seemed to get, easily carving lines between and through the corners. The roll of the body felt well controlled from a passenger’s perspective, and it never wallowed. Watching Rodriguez dial in the steering, the car felt like it responded quickly and directly. Compared to an all-wheel-drive Taurus, the SHO’s unit gets unique tuning with a greater power bias to the rear wheels for a more balanced feel, and the car seemed to rotate around the corners effortlessly. We can’t wait to get behind the wheel ourselves later this spring, when we’ll provide a full road test.

“After doing this for 12 years,” Rodriguez said. “I know what a car should feel like, and I don’t get questioned anymore,” Rodriguez said. In other words, Rodriguez earned the respect of other engineers, making it completely understandable why Ford would trust her to tune the ride of this very important new car.

After about 30 minutes of trashing around Ford’s Dearborn proving grounds, Crissy Rodriguez aptly demonstrated that she and the team she’s part of knows how to dial in the suspension of a performance car. As she pressed the Start/Stop button on the SHO’s dash, Rodriguez said, “I think I’ve got the best job at Ford.” We’d agree.

Like the more prosaic Mustangs, the GT500 is mechanically an evolution of the older model. Just as Ford used the current-gen Bullitt model as the starting point for the 2010 Mustang GT, the lessons learned from developing the limited edition GT500 KR fed directly into the latest Shelby-badged variant. Output of the supercharged 5.4L V8 has now been cranked up to 540 hp and 510 lb-ft of torque, and the handling is claimed to be better than before.

Like the last GT500, this one gets more aggressive styling, particularly in the nose, and reprises many of the same detail elements. The horizontally mirrored trapezoidal shape of the grille in the upper and lower front fascia is meant to echo the oval shape of the Shelby Cobras of the ’60s. The upper grille is tilted forward at a steeper angle than the GT and the grille surround is separated entirely from the hood. The leading edge of the hood on other Mustangs forms the upper frame of the grille, while the new GT500 has an extra bit of bodywork there.

The hood of the GT500 still has a functional air extractor allowing some of the massive heat generated by the blown V8 to escape. The power dome of the V6 and GT is supplanted by a smoother bulge that now encompasses most of the hood. The driving lamps stay in the lower fascia reprising the last edition and leaving the grille area open for air flow.

Careful observers will note that the snake badge has moved from the right to the left side of the grille (when viewed from the front). This has nothing to do with the blowing of political winds, but is actually functional. Like the GT, the GT500 now has a cold air intake that sits directly behind the snake’s former residence.

A revised duck-tail spoiler sits at the back end along the trailing edge of the trunk-lid and incorporates a Gurney flap. The faux diffuser along the bottom of the GT500’s rump is now more prominent, although probably not any more functional. Regardless of the diffuser’s functionality, the new GT500 does have more down-force thanks to that spoiler and the front splitter. The center of pressure has also been moved further forward, which should help reduce understeer at higher speeds.

The diffuser is flanked by a pair of four-inch diameter tail-pipes that could be used to patch your local water main the next time it bursts. The Shelby badging along the trailing edge of the trunk-lid also now stretches the width of the distance between the tail-lights, just like the original 2005 concept.

Supporting the still excessive mass (we’ll get back to that) of the GT500 are new ten-spoke alloy wheels with a slimmer spoke design than before. Coupes and convertibles each get the same design but in different sizes and constructions. The rag-tops get a cast 18-inch version of the wheel, while closed-roof versions get a forged 19-inch construction. The forged version is both stronger and lighter than the smaller wheel compensating for the extra size. The sides of the spokes on the forged wheels are milled, helping to reduce the mass without sacrificing strength.

The leather seats inside the car now have pairs of longitudinal contrasting stripes that echo the stripes stretching the length of the body, as well as alcantara trim on the side bolsters, shift lever, parking braking boots and steering wheel. The traditional white cue-ball shift knob is now also adorned with a pair of black stripes parallel to the shaft of the short throw shifter. All of this is neither here nor there, as none one of these interior niceties makes the GT500 faster, turn better or stop better.

For that we have to look in the engine compartment. The powerplant remains a twin cam 5.4L V8 with a supercharger. New additions to the power plant include knock sensors, the aforementioned cold-air intake and a lower restriction exhaust system. The updates bump output from from 500 hp at 6,000 rpm to 540 hp at 6,200 rpm. Twisting force also goes from 480 lb-ft at 4,500 rpm to 510 lb-ft at the same peak speed.

Unfortunately, one aspect that didn’t change is the cast iron engine block. The aluminum block that was used in the Ford GT supercar had a dry sump system that can’t be packaged in the Mustang. Thus, the iron block from the F-150 was used with the top end of the GT engine, which pushed the car’s weight up over 3,900 lbs. That makes the GT500 both the heaviest and most powerful Mustang.

The top two ratios in the new GT500’s gearbox have been made numerically lower to help reduce fuel consumption. As before, getting all the drive torque from the engine to the gears is the job of a dual plate clutch. The clutch plates have been increased in diameter from 215 mm to 250 mm. This allowed Ford to reduce the clutch pedal effort while improving the torque transmission capability.

All that torque flows from the Tremec 6-speed gearbox through a limited slip differential with a 3.55:1 final drive ratio. The 2010 GT500 gets 17% stiffer springs at the front axle and 7% stiffer at the rear axle. The forged alloys on the coupe are wrapped in Goodyear F1 Supercar rubber sized 255/40R19 front and 285/25R19 rear. The Brembo four-pot calipers are retained at the front and the GT500 also get the same standard electronic stability control that lesser Mustangs get for 2010.

Like the GT with the Track Pack, the ESC in the new GT500 always defaults on when the car is started, but can be turned off or put into a Sport mode. In Sport mode, the ESC allows greater amounts of slip before intervening.

The 2010 GT500 now has more power and presumably better handling than before. When we drove the last iterations of the GT500 and Bullitt, the Shelby was undoubtedly faster but the Bullitt was a better all-around car and daily driver. The Bullitt’s lighter weight and better balance made it more fun to drive on the street while the blown Mustang was king at the Friday night drag races. Only time will tell if the GT500 can overcome.

No Taurus in recent memory ever looked this good, and the transformation is welcomed because 2008-2009 Taurus isn’t a great looking car. Knowing this truth, Ford decided to do something drastic.

The all-new design is decidedly upscale. There’s not a hint of the dowdy old style to be found. The exterior style is dominated by a sculpted hood, pronounced front fenders, and character line that runs front to back ending at the tall trailing edge of the rear fenders.

Inside, a forward-leaning center control cluster clearly makes the new Taurus a five-seater. New production techniques have yielded better looking and richer feeling dash and door coverings. As evidenced in recently introduced models, Ford knows how to craft high-quality and visually pleasing interiors. Panel gaps and materials appear on par with luxury cars.

Even though the Taurus is a full-size car, the amount of passenger room still surprised us. The adjective “huge” comes to mind. The trunk, thanks to the high profile of the rear fenders and the tall deck, is likewise enormous. Back in the days of drive-in movies, it would have been easy to fit three stow-aways back there with room for soda and chips.

The 2010 Ford Taurus should have the moves to match its trimmer more athletic looks. The mechanicals are based on the Lincoln MKS, a capable performance sedan. The standard engine is a refined 3.5-liter V-6 (also used in the Lincoln), generating an estimated 263 horsepower. Along with earning ULEV-II emissions certification front-wheel-drive Taurus (all-wheel drive is optional) is expected to deliver unsurpassed highway fuel economy in the class, but Ford hasn’t yet released mpg estimates.

Every Taurus will be equipped with a six-speed automatic. On SEL and Limited models (the SE is the base model), the transmission will feature paddle shifters on the steering wheel, a manual shift mode, and rev-matching downshifts deliver a sportier driving experience.

Compared to the outgoing model, the chassis components under the 2010 Taurus should provide sportier ride dynamics. Ford engineers promise more roll stiffness and more responsive steering. Like the MKS, the new Ford uses struts up front and multi-link, fully-independent arrangement in the rear.

Ford added a healthy helping of technology to the 2010 Taurus. Many of these features were once found exclusively in high-end luxury cars, but now Ford is making them mainstream. The list of options includes: Adaptive cruise control that uses radar to adjust the car’s cruising speed in traffic; keyless entry with push-button start; and Ford’s SecuriCode Keyless Entry Keypad with a new keypad flush-mounted on the driver’s side B-pillar. These are added to the latest version of Ford’s SYNC infotainment interface that includes turn-by-turn route guidance (SYNC and GM’s OnStar are in a heated battle to out-feature the other).

Offering even more travel-type information is optional voice-activated NAV with SIRIUS Travel Link that uses a large eight-inch touch screen. The Travel Link subscription provides current weather conditions (real-time radar), a five-day forecast, local fuel pricing by cost per gallon as well as brand, sports scores and movie listings.

One especially interesting option is what Ford is calling multi-contour front seats. These seats include six-way lumbar support and subtle rolling pattern massage. The minute but continuous movement stirs a change of muscular activation helping a driver avoid back pain and help reduce long-distance driving fatigue. We can’t wait to log a few hundred miles sitting in these to see if they perform as promised.

On the safety front, the 2010 Taurus is well equipped with standards including six air bags (including two-row side canopy units), electronic stability control, ABS, traction control, automatic high beams, rain-sensing wipers, plus a post-crash feature that unlocks all doors, flashes the emergency flashers, and sounds the horn in an event of an airbag deployment.

Safety enhancing options include a collision warning system that’s part of the adaptive cruise control. When the potential for a collision is detected, the brakes are pre-charged for faster response, and a visual “heads-up” warning signal is flashed on the base of the windshield. Drivers are also warned of traffic they might not see on the highway or in parking lots by Ford’s Blind Spot Information and Cross Traffic Alert systems that use rear- and side-aiming radar. Additionally, Ford’s SYNC now includes a 911 Assist enhancement that will place a call to a local emergency operator in the event of an air bag deployment incident.

Regardless of your take on the old Taurus, this 2010 edition looks to offer a level of technology and style never before offered for only $25,995. Expect to see it in dealers this summer.

We’ll bring you a full drive report as soon as test cars become available.

While the regular versions of the pony car have kept money pouring into Ford’s coffers — even when the company has struggled to sell much else beyond pickups — it’s these special models that have kept interest high and the flame burning bright among enthusiasts and collectors. There’s no sign the parade is going to stop, either. Read on for the scoop on five new special-edition Mustangs for 2009.*

*Every one of these models was made up and isn’t real, in case you couldn’t figure it out.

Ford Mustang Foal Edition

The last six-pot Stang we tested ran to 60 mph in 6.5 seconds and through the quarter-mile in 15.3 seconds at 93 mph. That, my friends, is just too damn quick for some people. Who needs all that go? Certainly not the hordes who buy Mustangs to serve as canvases for body kits, big spoilers, and gothic-lettered shout-outs to their dead grandmothers.

And so the Foal Edition marks the return of the four-cylinder Mustang, a Mustang with a 177-hp, 2.5-liter powerplant that provides what those hordes want and nothing more: enough gusto to get from fast-food parking lot to fast-food parking lot and the mall in between. They won’t be winning any drag-strip throwdowns, but who cares? The name of the game here is style, not speed.

With its sub-$18,000 price point, the Foal provides an inexpensive, Scion-like blank slate on which new owners can infuse their own personality. The Foal rolls on 16-inch steelies for easier fitment of chrome hubcaps, and it wears front and rear bumpers that remain unpainted, since they’ll probably be tossed in favor of ill-fitting, primer-coated replacements anyway. The paint on the rest of the car is treated with a special polymer that’s said to facilitate decal swapping; when that awesome tribal theme starts getting stale, owners can toss it in favor of purple and gold flames or maybe even a sweet airbrush-look Viking battle scene.

Ford Mustang Malaria Edition

Big ups to Ford for its 2008 Warriors in Pink Mustang, a portion of the proceeds from which helps fund research to cure breast cancer. Designed to raise awareness of the company’s efforts to help fight the deadly disease, it showed that even global automotive giants can have a heart. With so many other horrible afflictions in dire need of cures as well, we’re glad to report that Ford is planning a follow-up: the Ford Mustang Malaria Edition, with the proceeds this time going to combat, well, malaria.

A disease primarily restricted to equatorial territories, estimates of infection range anywhere from 300 million to 900 million cases annually, with an estimated one-to-three million per year proving fatal. Symptoms include fever, vomiting, and convulsions (coincidentally, these are the same symptoms we experience when we think about driving a Jeep Compass), and treatment is often too expensive for people in some of the world’s poorest countries. You can see the need for aid.

As with the Warriors in Pink car, the primary mission of this model is awareness and fundraising, but there are a few functional changes. Malaria is often transmitted via mosquito bites, so the white and yellow Malaria Edition car will include mosquito netting, which will allow folks to enjoy window-down motoring without fear of contracting the disease, and a bug zapper that dangles from the rearview mirror to take care of any skeeters that do happen to wander in.

See the Debut of the Ford Interceptor at the 2007 Detroit Auto Show

Riding on a 120.8-in. wheelbase, the Interceptor measures 201.6 in. in overall length. Powered by a 5.0-liter V-8 running on E85 ethanol, the Interceptor delivers 400 bhp to the rear wheels via a six speed manual transmission. Unlike the Mustang, however, the rear suspension is an independent multi-link setup instead of the traditional live axle. Unfortunately, designers grafted the streamliner look of last year’s Super Chief truck concept on what would have been an otherwise handsome four-door. Too bad this concept doesn’t share the same angular good looks as the 427 Concept that bowed in 2003 and has proven so successful on the Fusion. Still, if designers were looking for an intimidating look, they achieved it with a blunt nose that incorporates Ford’s new three-bar grille styling theme, a clamshell “shaker” hood, massive wheels, low greenhouse and high beltline.

See More Detroit Coverage from Road & Track

Inside, the Interceptor features low-back bucket seats, which pay homage to ’60s muscle cars. For safety reasons, however, headrests have not been abandoned entirely, instead they deploy from the headliner. A huge center console divides the cabin and all four seats are equipped with four-point safety belts. The rear seat passengers benefit from belts that are inflatable in a crash. The Interceptor’s instrumentation is minimal with a large tach and speedometer dominating the binnacle in front of the driver, while the audio system and climate control are hidden from view. If Ford decided to develop a four-door off the Mustang platform similar to the Interceptor, the earliest it could make it to market would be in the 2010-2011 timeframe.

The Ford Flex was built to compete successfully against the GM quartet of CUVs: Acadia, Enclave, Outlook and Traverse, plus the Toyota Highlander, Honda Pilot, and the Chrysler and Dodge minivans, among others.

The Flex was designed to look like nothing else on the road. It has square corners, four conventional doors, a rear hatch, a long, flat hood and the now-familiar Ford three-bar horizontal grille. But it also has an all-black greenhouse regardless of paint or roof color, and it has a decidedly low-slung stance, just the opposite of most SUVs. For such a long, wide vehicle, it has a drag coefficient of only 0.33, a very good number for its size.

The Flex is the only vehicle of its type that incorporates its rocker panels as part of the sheet metal of the doors, folding under to the chassis. The Ford designers said it makes the car look longer and lower than it is, and makes it easier to get in and out without getting dirt on your pants.

The Flex is built on a 118-inch wheelbase version of the same chassis that goes under the Taurus, Sable and Taurus X, and that extra length gives it what Ford says is the largest interior in its class at just under 176 cubic feet. The EPA says it has 155.8 cubic feet of passenger space, 20 cubic feet of space behind the third row seats, 43.2 cubic feet with the third row seats folded down, and 83.2 cubic feet with the second and third row seats folded down. Every seat in the Flex but the driver’s seat seats, including the front passenger seat, folds down flat, which means you can carry cargoes up to 119 inches long inside.

For the Flex, Ford lengthened the body structure it shares two inches with the wheelbase being stretched a full five inches. The entire five inches of additional length are added to the second row for easy entry and exit and lots of legroom for the second-row passengers. The B-pillar was moved back for easy ingress/egress, and Ford says there is 44 inches of legroom in a Flex, with seven inches of knee clearance.

The engine in the Ford Flex is a 3.5-liter 24-valve V-6 engine that’s in all the other Ford, Lincoln and Mercury vehicles on this platform, slightly detuned to 262 horsepower at 6250 rpm and 248 foot-pounds of torque at 4500 rpm.

The 6-speed automatic transmission is the only available choice and the customer can choose front-wheel drive or all-wheel drive configurations. The optional Haldex all-wheel-drive system can deliver up to 100 percent of engine torque to the front or rear tires, and can adjust torque side-to-side to match traction conditions. The Haldex drive system adds 111 pounds to the front-wheel-drive version’s 4529 pounds for a total of 4640 pounds. The front-drive Flex will be rated at 17 mpg city and 24 highway, the all-wheel-drive version at 16 mpg city and 22 highway.

The Flex pricing starts at the SE trim level of $28,895, with the mid-level SEL model at $32,970 and the Limited model at $35,405, in FWD or AWD, in six- or seven-seater interior configurations. The price for the all-wheel-drive option, available on SEL and Limited models only, is $1850.

Standard equipment on all models includes Roll Stability Control, traction control, all the normal power assists, reverse sensing, rear air-conditioning, 18-inch wheels and tires, Ford’s cap-less fueling system, and fog lamps. Both 19-inch and 20-inch tires and wheels are optional, the latter mounting monster P255/45R20 H-rated tires that make it look really cool. Any Flex can be ordered with a white roof, a silver roof, or a body-color roof.

Ford has trumped every competitor vehicle in the van, minivan and SUV class with its new refrigerator option for the Flex. It’s is a real refrigerator, not a cooler, with a compressor, fan and exhaust system. It’s capable of achieving temperatures of 41 degrees Fahrenheit or, at the flip of a switch, temperatures as low as -5 degrees Fahrenheit. The refrigerated space can stow a wide variety of containers, and can hold up to seven 12-ounce cans in its position between the two second-row bucket seats. Ford says the refrigerator will run even with the engine off, and after it shuts off, is so well insulated that it will take several hours before the temperature falls far enough to have to cool or freeze the contents all over again. It’s a $760 option on any model as long as you order the second-row bucket seats, too.

Sirius Travel Link is another first-time option on the Ford Flex. You get 130 stations of Sirius satellite radio, but you also get satellite navigation, real-time weather, real-time traffic, and information on fuel prices in the local area. Travel Link can display weather information in radar, map or satellite formats, or as tables, including current weather, the five-day forecast, and ski reports. The Travel Link system can also display local movie listings for the top 40 most popular movies, as well as sports scores for every major sports league. The system includes a rear-view camera for backing up safely, and six months of service, at an option price of $2375.

The HDD navigation system can store up to 150 hours of music, with album covers, and it can play an iPod, and upload photos for display on the nav screen through a USB port. Another new option in Flex is a Sony 7.1 10-channel, 390-watt, ten-speaker sound system, or the optional twin headrest-screen DVD player.

The Microsoft Sync hands-free music and telephone system is also available in the Flex for an additional $395, with an automatic 911 accident notification added to the existing Sync technology.

On our first test-drive we got to drive the Flex from the borough of Queens up into Connecticut to Greenwich, then all the way back down to Gramercy Park in lower Manhattan. Our test car was a Limited AWD, priced at about $40,000 including the optional Vista Roof, the Travel Link and Sync systems, heated reclining rear bucket seats, two-tone paint, roof rack, and 19-inch polished wheels with 235/55R-19 tires.

The Flex drove pretty well considering its weight, and it stops and handles much better than we had expected. It’s very quiet inside at road speeds, and you can hear very well from the first row to the third and vice versa. The seating position is high and the dashboard is low so it’s easy to see out in all directions. The front bucket seats were very comfortable even after all day in traffic. The second and third row seats were very roomy and comfortable, and the theater-style seat mounting made it easy to see out even from the third row.

Acceleration from the 3.5-liter engine is good if not exciting or heart-pounding. The engine felt smooth and powerful, and the transmission showed us quick, positive shifts up and down. The brake pedal feel and power were very good for a vehicle this heavy.

The Flex’s ride quality was also very good, without a lot of body roll. The low ride height makes it easy to get in or out. The simple instrument package, the 8-inch display screen, the center stack, and the wood, leather and chrome trim all fit together well and are easy on the eyes, with tight gaps throughout the interior.

With its refreshing design, easy-to-live-with low ride height, big tires and wheels, quiet and spacious interior, and the all-around solid performance, we think the new Ford Flex should be a big success in the marketplace. Especially in a competitive field that looks old and stodgy by comparison to this entirely new shape, size and style of family wagon.

This ‘85 GMC K-2500 comes from Jim Emmert of Molalla, Oregon. A swapped-in 6.5L turbodiesel with ATS turbocharger motivates the truck, while a Pro Comp 4-inch lift makes room for 35-inch Dick Cepek Mountain Cat tires. Used daily on a farm, Jim can’t help but count down the hours each week before packing his gear and heading up into the nearby Cascade Mountains for weekend ‘wheeling trips. Jim tells us the turbodiesel gets great fuel mileage and offers better performance than the stock 6.2L.

Ed Williams, lives in Kodiak, Alaska. The photos he sent in were taken in Cordova, Alaska, in front of Sheridan Glacier. His rig is a combination of parts that seem to work well in the chilly Northern regions. A ‘69 Ford Bronco frame was mated to a ‘74 body, and runs a 351 Windsor V-8 engine with a Holley 650 Truck Avenger carburetor. A Jacobs ignition and K&N air filter boost power while a C4 transmission and Dana 20 transfer case provide the gearing. Axles are stock except for a Detroit Locker and 4.88 gears. A 3.5-inch lift came from Bronco Graveyard, and dual Rancho 9000s help smooth out the ride. Beefed-up steering, custom-built bumpers, and a six-point cage round out the list of backyard ingenuity.

This ‘03 Grand Cherokee Laredo belongs to Tyler Raymond from Glenburn, Maine. Sporting an FIPK, a Power-Aid 1-inch throttle-body spacer, and a 2-inch body lift, this Jeep is a perfect daily driver for a region where lifts greater than 3 inches are illegal. Other mods include a Kevin’s Off Road transfer-case skidplate and a set of General Grabber AT2 tires.

David and Ben Weisensel of Granite Quarry, North Carolina, are both longtime readers, and these are the rigs they enjoy abusing each week. David drives the F-350 Crew Cab (affectionately referred to as “Black Thunder”) with a 460 with a rebuilt top end. Power goes through a rebuilt E4OD tranny with a shift kit. A front Dana 60 and rear 10.25 both are equipped with 4.56:1 gearing. A set of 35-inch Interco SSRs provide traction. David’s son Ben prefers old-school brute and drives the ‘77 F-250 Hi-Boy. Known around town as “Big Red,” this rig is equipped with a 400 V-8, stock C6, and a stock transfer case. Dana 60s front and rear sit atop 37-inch Boggers on Alcoa polished-aluminum rims.

Jeanne and Chuck Sylvester of Rochester, Massachusetts, own this sweet red rocket ship. Well, maybe it’s not a rocket ship, but we bet it moves like one. Under the shiny red hood lurks a 5.0L Mustang powerplant mated to a four-speed automatic transmission. From there, a trusty NP205 splits the fire between a front Dana 44 with a Truetrac and a custom Ford 9-inch with a locker out back. Both feature Moser axles and 4.10:1 gearing. There’s also a 6.5-inch lift from Rusty’s Off Road. Chuck says the 5.0L has no problem spinning the 35-inch BFG M-Ts.

Jennifer Buch of Tigerton, Wisconsin, drives this ‘90 Dodge Ramcharger equipped with a 4-inch Rough Country lift, 36-inch tires, and a high-output 318 V-8. This shot was taken on the Pipeline Trail of Wisconsin. Jennifer says she got stuck because she had to hit the hole a second time to get a good picture. Nice, Jennifer. Blame the camera …

Seth Hopper is a Marine stationed in Twentynine Palms, California. His ‘72 Jeepster Commando is affectionately known as a “Bullnose.” For now, it’s completely stock, though in the future Seth plans to upgrade the AMC 304 V-8, TH400 transmission, and Dana 20 transfer case with rebuilds. The stock axles are open and feature 3.73:1 gearing for now. We hope to see another photo of Bullnose once Seth gets around to performing the restoration.

Over the 25,000 miles we put on the Super Duty, we were impressed with the reliability and power of the 6.4L V-8 and the comfort of the ride. While there is no mistaking it for a car, the exceptionally laid-out interior, ample size and quiet cab make for an incredible long range hauler. Hook a trailer to it, and the Super Duty is in its element. With 650 lb-ft of torque making towing effortless, even when passing, downshifts are rare and the backup camera makes single-person hitching a breeze. We have put as many as 17 straight hours in the saddle, through all types of weather, and hardly felt worse for the wear. The FX4 package gives a good mix of capability on and off highway, while retaining the Super Duty’s on-road manners.

Complaints mostly centered around the clean diesel particulate filter’s regeneration mode with testers commenting in the logbook, “One can re-set the trip computer mpg function at fill up, then enjoy 18 mpg on the hwy for a while, only to see the numbers plummet to the single digits as soon as the engine controller dials up another trap cleaning-guess it’s not hard to figure out why the mileage isn’t the same as the old trucks,” and “Throttle response, intake sound and exhaust note all change for the worse during a DPF regeneration cycle, but the 500-degree exhaust tips are perfect for heating burritos”. We also noted a rough ride over broken roads, but otherwise we’re hard-pressed for complaints.

Minor damage was incurred when our Super Duty was rear-ended by an inattentive driver in the rain.

Reliability, as we noted in previous reports, was great with only a rear door-lock solenoid and a tire pressure monitoring sensor needing replacement.

Over the course of this past year, Ford’s Super Duty has given us exceptional service and has reinforced our positive feelings for the big truck. We saw none of the early-6.0L diesel gremlins that our readers asked us to be on the lookout for, and in day-to-day use, the 6.4L has proven itself trustworthy and capable of carrying on the Power Stroke banner. If this year of experience with the F-350 proved anything, it was that we made the right choice in crowning it our 2008 PTOTY winner.

Report: 4 of 4

Previous reports: July ‘08, Nov. ‘08, Mar. ‘09
Base price: $36,850
Price as tested: $56,095
Four-wheel-drive system: Two-speed, part-time electronic, shift on the fly

Long-Term Numbers
Miles to date: 25,845
Miles since last report: 9,016
Average mpg (this report): 13.44
Test best tank (mpg): 15.07
Test worst tank (mpg): 6.61 (towing)

Maintenance
19,896-miles: 20K service and fuel filters, $475.34
23,043-miles: Recall and replace TPMS sensor, warranty
24,975-miles: Service and rotation, $153.38
Problem Areas: Door lock solenoid, tire pressure sensor

What’s Hot, What’s Not
Hot: Clean diesel, outstanding visibility, exceptional as a tow rig
Not: Clean diesel fuel economy, rough ride on broken roads, not much

Logbook Quotes
* “Cruise control cut out and truck went down on power. Restart cleared it – no more problems.”
* “The mirrors are outstanding, as is the overall visibility.”
* “The ride can be stiff at times, but get it out on the highway with a load on the hitch and it is as smooth as anything.”
* “I am impressed with the 6.4L, it has proven to be a solid motor with no lack of power.”

1. First, the truck is secured on the hoist and the transmission is removed.

The folks at Centerforce invited us out to their facility in Prescott, Arizona, and graciously offered to install a new Centerforce Dual Friction performance clutch in our Ranger. The Centerforce Dual Friction clutch offers super street characteristics, while significantly improving holding capacity and durability over stock. They do this by offering the DF clutch disc with a full-facing proprietary compound on the pressure-plate side and segmented composite facing on the flywheel side, providing the desired result of higher holding capacity, while still offering stocklike pedal effort.

Thanks to the new clutch setup, Project RangeRunner has the ability to crawl over obstacles without the clutch slipping under load. It also fires off smoother shifts under wide-open throttle with the supercharger at full wail. Follow along for an overview of our installation.

2. With the transmission removed, the factory clutch assembly is exposed.	3. Our flywheel surface was worn unevenly and showed telltale signs of overheating.	4. The stock pressure plate also showed signs of overheating.
5. Before resurfacing the stock flywheel, we made sure it was clean and free of any debris.	6. After resurfacing, our flywheel was as good as new and ready to be installed.	7. On the right is the chewed-up stock clutch disc; on the left is the new Centerforce Dual Friction disc with its segmented facing visible.
8. The Mazda/Ford M50D/R1HD manual transmission is notorious for slave cylinders going bad. Since these are internally mounted, it is always recommended to replace them with the clutch.	9. With the bellhousing gutted and cleaned, it was ready to accept the new clutch slave cylinder.	10. On the engine side, the newly resurfaced flywheel was installed.
11. Next, the new DF clutch disc was put into place.	12. The last piece of the clutch assembly to be installed was the pressure plate.	13. With the transmission lifted into place, the RangeRunner was ready to go blast down the trail again.

With 3.50:1 axles and a three-speed transmission, we felt that the drivetrain made for “smooth easy running, but doesn’t hack it off road,” adding that 4.11:1s were an optional “step-up” ratio. “Handling and steering are great on the road,” we said of the Bronco, though braking required “extra effort,” and off-road performance was a mixed bag: With the tallish gears, “going down sand roads [was] a bit hairy,” and “trying to get up soft sandy hills . . . was also a problem.” Still, we felt the bobtail Bronc’ was “one neat vehicle, and we’d hate to see anything untoward happen to it.”

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They are buying Ford’s cars and trucks.

Ford gained more than two full percentage points of market share in the United States last month. What’s more, Ford achieved the gain while lowering incentives, such as cash-back rebates, by nearly 30%.

The positive momentum underscores why Ford contends it can make it through the economic downturn without federal assistance.

Ford executives first began pointing out the company’s unique position last December, to distinguish Ford from GM and Chrysler, who received federal loans.

In a campaign partially coordinated by Ford, dealers began running personal letters in their hometown papers about how Ford has distinguished itself both with high-quality, fuel-efficient products and from the other Detroit Three automakers by not taking federal loans.

“Ford Motor Co. has isolated themselves from the other two, as they have not accepted any federal money,” Crown Ford said in a letter to its customers in Nashville, Tenn.

That message has clearly been resonating with consumers.

Now, Ken Czubay, Ford’s vice president, sales and marketing, said Ford’s newest promotion, “Drive the Ford Difference,” combines the “Ford is different” public relations strategy with the Ford b