Monday, January 5, 2009

Fusion receives a major upgrade

LOS ANGELES -- Ford Motor Co. thinks its 2010 Fusion has the makings of a contender in the cut-throat midsize car market segment.

The Fusion, which debuted in 2006, underwent a major refresh for the 2010 model year. Ford changed powertrains -- adding more efficient (and powerful) four- and six-cylinder engines and six-speed transmissions -- as well as introducing two new models to the Fusion family: The Fusion Sport with a 3.5-liter V-6 and the Fusion hybrid, which hits at least 39 mpg in city driving.

"We knew going into the refresh that it would be a major reworking," said Frank Davis, executive director of North American product development for Ford. "We have a great fuel economy story to tell and believe that when the new Fusion arrives we'll be able to gain market share at our Japanese competitors' expense."

That's a tall order. Through November, Ford has sold 137,295 Fusions compared with sales of 411,342 for the Toyota Camry, 350,441 for the Honda Accord and 252,357 for the Nissan Altima, according to Autodata Corp. Even adding in sales of 29,174 for the Mercury Milan, the Fusion's sister vehicle, Ford's figures pale in comparison.

Ford banked on the original Fusion, and the short-lived Five Hundred sedan, renamed the Taurus, to spark a revival in its mid-size car sales.

"It's going to be difficult for any American company in this current climate," said Jack Nerad, a Kelley Blue Book industry analyst. "There are so many questions about the ongoing viability of any of the domestic companies."

Jim Hall, director of analysis for 2953 Analytics LLP in Birmingham, however, said the Fusion just might grab a few of those customers.

"They have a chance to do it because they'll have fuel economy to do it," Hall said.

Consumers still reeling from $4-a-gallon gas prices this summer will continue to search for cars with better fuel efficiency. The Fusion, which has a base model price of $19,270, will stand out as a value when stacked up against midsize stalwarts such as the Toyota Camry and Honda Accord, Ford hopes.

Additionally, Ford has continued to improve its image by winning quality awards from the likes of J.D. Power and Associates and recommendations from influential magazines such as "Consumer Reports," said the Fusion's chief engineer, J.D. Shanahan.

More than that, Shanahan said that his team has "significantly improved" the car's driving dynamics, making it a fun alternative to the Camry.

"We've cut more than a second off the Fusion's zero-to-60 time while adding four to five miles per gallon to its performance," Shanahan said.

Nerad said improved performance and style might help the Fusion more than improved fuel economy in the immediate future.

"Some people are saying we're going to be looking at a dollar a gallon gas," he said, "that may or may not resonate with consumers, probably not "

Ford said the car's makeover addresses the previous models' interior shortcomings.Additional features such as blind spot detection and a back-up camera have been added, among other items. The new Fusion also is noticeably quieter while driving because of additional sound deadening materials, thicker side windows and a noise reducing windshield.

"Quiet is quality," said Davis, of the way customers perceive a vehicle's image through its ride.

Davis wouldn't say how much Ford expects Fusion sales to rise, but he said Ford expects to see about 70 percent of its volume in four-cylinder models, perhaps the lineups' most improved model.

While the car market remains stagnant due to the weak economy, Hall said when customers return to dealerships, and eventually, they will, the Fusion could be on more shoppers' list.

"This is the car Ford should have introduced in 2006, and now it's arriving in a very bad market," Hall said. The original Fusion arrived with decent fuel economy and decent performance, but it lacked anything that made it stand out against the competition. Now it does.

Scott Burgess is the auto critic for The Detroit News. He can be reached at (313) 223-3217 or sburgess@detnews.com.

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