Ford's New Top Seller? - December 23, 2008

In an effort to revitalize their market position within the struggling auto industry, Ford (F) received a letter of certification for their all-new 2010 Fusion Hybrid from the Environmental Protection Agency (EPA) today.

In what is now the highest rated, mileage wise, mid-sized sedan, the new Fusion has an estimated 41 miles per gallon in the city, and 36 miles per gallon on the highway. The company introduced the car earlier today, in efforts to compete with rival Toyota (TM) and their hybrid Camry.

With the Big Three in dire straits, the auto industry needed a shot in the arm, and Ford was able to provide that today.

The introduction of the new hybrid today makes it the second most fuel-efficient car on the road today, behind the Toyota Prius which gets somewhere in the neighborhood of 60 miles to the gallon.

"Consumers are completely reconsidering everything about buying a car, in terms of what attributes they're looking for," says Stephen Berkov, executive director of client strategy at consumer website Edmunds.com.. "Now, the No. 1 factor would be fuel efficiency — that's a paradigm shift. Automotive marketing has always been about performance, and now it's about fuel efficiency."

Ford’s new Fusion can travel upwards of 47 mph on battery power alone. Once that speed is reached, the car switches over to gasoline power, the company’s new four-cylinder engine, which in turn recharges the battery.

The smaller, lighter nickel-metal hybrid battery produces 20% more power than the company’s previous technology, which accompanies the Escape Hybrid models. The battery is also 50 pounds lighter than the previous version.

Another improved technology in the new hybrid system is the conversion of the air conditioner from gas to battery operated. In previous models, the ac unit was driven by the gas-powered engine. In the new Fusion, the ac is powered solely from the battery pack, improving gas mileage even further.

One of the greatest improvements to the car comes from the braking system. In what is referred to as “regenerative” braking, the new system captures energy lost in the braking process and stores it for future battery use. Ford claims that the new Fusion braking system recovers 94% of the energy lost in braking.

Although the price of gas has retreated from its all-time high of $4.11 a gallon in July, consumers were blindsided by the price then, and have now become more leery of gas prices. Fuel economy is now one of the highest selling points for new and used cars these days.

As one of the Big Three, Ford slides right into the media spotlight with a vehicle that provides consumers with an alternative to the top-selling hybrids from Toyota. Moreover, it gives the Detroit automakers a positive spin in a time when Congress was giving them grief for not producing enough “green” cars.

Upon receiving their final certification from the EPA, the Ford Fusion Hybrid was originally unveiled at the L.A. auto show last month, along with the Mercury version of the Milan Hybrid.

In trading today, shares of Ford were pummeled, falling more than 14% to trade at $2.23 per share.

For more information on the stock and options markets check out the wealth of information at BetterTrades.