Ford Motor Company's mid-range Mercury brand has long occupied the middle ground between somewhat more affordable Fords and more upscale Lincolns. That is not expected to change going forward, but Mercury will become more European in size, style and character and more slanted toward fuel efficiency. So, not surprisingly—since Ford has redesigned its already excellent parallel hybrid system and is expanding its availability to substantially upgraded Ford Fusion and Mercury Milan mid-size sedans—the 2010 Mercury Milan Hybrid joins its Ford cousin, and the Ford Escape and Mercury Mariner (compact crossover) Hybrids double both the size and volume of the company's hybrid lineup. Official EPA ratings put these fine new Fusion and Milan Hybrids at 41 mpg city and 36 highway, beating Toyota's '09 mid-size Camry Hybrid by eight and two mpg, respectively.

The conventional Fusion and Milan, nicely restyled and much improved for 2010, offer the mid-size segment's best gasoline four-cylinder fuel economy, more powerful available V-6s, class-exclusive technologies—including the Blind Spot Information System with Cross Traffic Alert and Ford SYNC—and more total passenger and luggage capacity than the Camry. "The Milan has been a strong part of the Mercury lineup since its initial launch and has helped attract more consumers to dealer showrooms," said John Felice, general manager, Ford, Lincoln Mercury Marketing. "For sophisticated consumers looking for a stylish hybrid, the Milan now offers them the most fuel-efficient hybrid sedan in its class."

"Our approach was to build upon the Milan's strengths—to improve rather than reinvent," adds Chief Designer Darrell Behmer. "We wanted to clarify the design, making it cleaner and more modern." Exterior changes focused on the grille, fenders, hood, and front and rear fascias. The chin was pushed forward and the fascia pulled down to give it a wider, sportier look, while substantial underbody work make it cleaner and more aerodynamic.

The interior looks more contemporary and technical, with new metallic finishes on the instrument panel, center console, doors and steering wheel. Two-tone coloring continues as a Milan signature, with satin aluminum accents and a wood finish around the center stack. A new instrument panel offers soft upper and lower skins—less hard plastic than typical Japanese sedans—and cool, ice blue lighting. The gauges have daytime backlighting, a black lens and 3-D elements simulating the high tech, jewel-like look of a fine watch. And we love the new leather-wrapped steering wheel, with form-fitting "palm swells," and the very comfortable new seats, with improved contours, more side support, smoother side bolsters and leather inserts with contrasting stitching. The available ambient lighting system even offers the option of illuminating both front and rear footwells and the front cup holders.

The 2009 all-new Milan Hybrid is exciting news for fuel economy fans. Driving one on city streets and in urban freeway traffic near Ford's Dearborn, MI Product Development Center on a bitter cold winter afternoon, we were impressed by its efficiency "coaching" instrumentation, which Ford calls SmartGaugeTM with EcoGuide, and by how seamlessly and transparently it transitions from gas to electric power, and back. We averaged between 34 and 48 mpg depending on how slowly and carefully we feather-footed our way along.

Among this next-generation hybrid system's key features are an ultra-efficient gasoline and electric power combined will produce 191 net horsepower. The new 2.5-liter 4-cylinder "Atkinson cycle" engine itself is good for 155 hp and 136 lb.-ft. of torque mated to an electronically controlled continuously variable transmission, or "e-CVT." Intake Variable Cam Timing (iVCT) enables those seamless transitions from gas to electric and vice-versa, while both spark and cam timing are varied according to engine load to optimize efficiency and emissions. Enhanced electronic throttle control reduces airflow on shutdowns, which reduces fuel need on restarts, and a "wide-band lambda sensor" analyzes air-fuel ratios and adjusts the lean/rich mixture to keep the system in balance and minimize emissions.

The new smaller, lighter nickel-metal hydride (NiMH) 275-volt battery is optimized to produce 20 percent more power than Ford Motor Company's first generation hybrid system. Cooled by cabin air, improved chemistry allows it to run at higher temperatures, and a variable voltage converter boosts voltage to the battery for more efficient motor and generator operation. "Smarter" climate control with an electric air-conditioning compressor minimizes engine usage by running it only as needed for heating and cooling.

The brake system delivers full regenerative braking (when the drive motor becomes a generator), backed up by friction braking as needed, to capture nearly 94 percent of the energy normally lost through friction in braking and send it back to the battery. And, as we noticed during our drive, it delivers much improved brake pedal feel compared to the previous system.

The hybrid system also allows the Fusion and Milan Hybrids to operate longer at higher speeds in electric mode than competitive systems. Driven extra gingerly, they can run up to 47 mph in pure electric mode, approximately double the speed of some competitors. "Because our hybrid can run at a much higher speed in electric mode, you can do so much more in city-driving situations," says Ford Hybrid Applications Manager Gil Portalatin. "Under the right conditions, you can drive in your neighborhood or in mall parking lots without using a drop of gasoline." And the city driving range on a tank of gas is expected to be more than 700 miles.

The bottom line of all this advanced technology is a very "normal" driving experience requiring little sacrifice in exchange for superior fuel efficiency vs. Toyota's Synergy Drive or anyone else's similar system. And then there's Ford's SmartGauge with EcoGuide, which cleverly coaches drivers on how to optimize their hybrid's efficiency performance.

It uses two high-resolution, full-color liquid crystal display (LCD) screens flanking the speedometer that can be configured to show different levels of information. The approach is multi-layered: A tutorial mode helps drivers learn about the system and its instruments in a whimsical way, while tech enthusiasts will enjoy detailed gauges that help them become more efficient. The system even "grows" leaves and vines on-screen to reward efficient driving.

Drivers can choose one of four data screens: The basic "Inform" screen displays fuel level and battery charge status; "Enlighten" adds an electric vehicle mode indicator and a tachometer; "Engage" adds engine output power and battery output power; and "Empower adds power to wheels, engine pull-up threshold and accessory power consumption. All levels can show instant fuel economy, fuel economy history, odometer, engine coolant temperature, transmission gear and trip data—trip fuel economy, time elapsed fuel economy and miles to empty. There's even an engine coolant temperature indicator that turns green when the engine is warm enough to allow engine shut-off and restart for full EV operation.

The 2010 Mercury Milan Hybrid is differentiated from conventional models by "road and leaf" hybrid badging on the sides and rear, eco-friendly seat fabric made from 85-percent post-industrial yarns, a standard 110-volt power outlet and unique 17-inch, eight-spoke wheels. Anyone considering investing in a mid-size hybrid sedan should give this one a serious look and an extended drive. It should arrive in Mercury dealer showrooms by spring 2009.