New Ford hybrid sedans post 41 mpg in the city

Ford Motor Co. said today that its Ford Fusion and Mercury Milanhybrid sedans have been certified by the EPA at 41 mpg city/36 highway.

The ratings put the hybrids' fuel economy at the front of the mid-sized pack, Ford said in a statement. Ford engineers spent three years revamping the gasoline-electric powertrain that debuted in the 2004 Escape Hybrid crossover.

The announcement underscores efforts by the Detroit 3 to bring more fuel-efficient vehicles to market.

During recent congressional hearings for federal bailout funds, the Detroit 3 were criticized for their past adherence to larger vehicles with poor fuel economy.

The latest version of Ford's hybrid powertrain again uses a one-speed continuously variable transmission. The size of the gasoline engine has been increased to 2.5 liters from from 2.3. The nickel-metal hydride battery pack is smaller and lighter but puts out 20 percent more power.

The Fusion Hybrid arrives in dealerships next spring with a base price of $27,270, excluding delivery charges that have not been announced. No price has been announced for the Milan Hybrid.

Competition is stiff among fuel-efficient cars.

Volkswagen's compact diesel-powered Jetta sedan delivers 30 mpg city/41 highway, while the Honda Civic Hybrid sedan gets 40 city/45 highway. The Toyota Camry Hybrid, similar in size to the Fusion and Milan, is rated at 33 city/34 highway.

But Ford may have the edge when it comes to driving on pure electric power. The Fusion Hybrid and Milan Hybrid can reach speeds of 47 mph on electricity alone, a higher speed than other hybrids.

"The Fusion Hybrid's ability to run at much higher speed in electric mode allows drivers to maximize fuel efficiently in many driving situations," said Praveen Cherian, Fusion Hybrid program leader. "This would allow drivers to travel around their subdivision and parking areas in all-electric mode."

Chevrolet's new compact car to be called the Cruze

General Motors is calling its new compact car for Chevrolet the Cruze, the automaker confirmed late today.

"The name is a derivative of the word cruise," says Nancy Libby, GM spokeswoman.

GM will unveil the production version of the Cruze at the Paris auto show this fall, Libby confirmed.

On June 2, Automotive News reported that GM would build a new compact car to replace the Chevrolet Cobalt at its plant in Lordstown, Ohio. The next day, GM CEO Rick Wagoner confirmed that Chevrolet would get a new compact.

The Cruze will be built on GM's Delta compact car architecture. It will use a new 1.4-liter global engine that GM developed and recently announced in Europe. The turbocharged four-cylinder engine will be used in several GM vehicles worldwide.

GM says the engine will be capable of developing 120 to 140 hp. Sources say mileage could exceed 40 mpg.

Production of the Cruze is slated to start in the middle of 2010 as a 2011 model.

Libby sees the Cruze's main competitors as the Honda Civic, Volkswagen Jetta, Mazda3 and Ford Focus.

The Cruze will be sold globally and will be similar in size to the Cobalt, Libby said. The five-passenger car will be about 15 feet long.

"We're coming to market as a sedan," Libby said. "There's no news yet on any other variants that could be spun from that vehicle."

Libby said the engine will be built in Flint, Mich.

GM unveiled the Cobalt in late 2004 as a 2005 model. It's been a top-selling car since its launch, selling more than 200,000 vehicles annually. Through June, amid a spike in gasoline prices, Cobalt sales are up 18.5 percent to 114,250. In June alone, Cobalt sales rose 21.6 percent versus June 2007.

The demand for the Cobalt has prompted GM to add a third shift at its plant in Lordstown starting on Aug. 4.