The Ford Fusion, and its sister vehicles the Mercury Milan and Lincoln MKZ, have been among our greatest product successes this year. These vehicles are a key element in Ford's Way Forward strategy to deliver highly competitive and desirable products, and they reflect our renewed commitment to providing superior car-based products. They also meet the growing demand for more fuel-efficient vehicles that do not compromise on style, performance or functionality. We designed the Fusion to be a leader in design, quality, safety and value – four key factors in consumers' purchase decisions. Based on the new sedan's sales, reviews and awards, we believe we have succeeded.
The Fusion represents the best of Ford's renewed commitment to bold American design. It features bold exterior styling, including a new brand signature three-bar grill and cat-eye headlights. The Fusion's interior has been rated superior to other vehicles in its category, including the Toyota Camry. It has been cited for excellent fit and finish, and superior ergonomics.
Perhaps even more important, the Fusion is one of the highest-quality vehicles available. In our own Global Quality Research Survey, the Fusion had the lowest record of "things gone wrong" of any new vehicle we have ever launched. In addition, it beat the Toyota Camry and Honda Accord, long-time leaders in quality ratings.
The Fusion is also leading Ford vehicles in its low number of warranty claims. With an average of 116 repairs per 1,000 vehicles after three months in service, the Fusion has the lowest retail warranty repair rate of any Ford vehicle ever sold. Warranty numbers for the powertrain are just as impressive: averaging 16.5 repairs per 1,000 vehicles, it has the lowest levels ever achieved at Ford.
The Fusion also has excellent safety performance. As of early 2007, it comes with standard side air bags. It also has optional all-wheel drive. It is the only vehicle in its class to offer this performance and safety feature, which is an important purchase consideration to a growing number of consumers. The Fusion received high crash-test rankings from the Insurance Institute of Highway Safety; it received the highest ranking of "good" on front and side collisions, and the next-best rating on rear collisions.
The Fusion has been rated a "best buy" by Consumer's Digest and Smart Money magazines. In addition, it was listed as a "best family car of the year" by AAA and Parents magazine for its combination of safety, quality, value and functionality.
While these rankings and awards are important, consumers and drivers are still the most important judge of a vehicle. The Fusion is excelling with these reviewers as well. In a recent Car and Driver test-drive comparison involving more than 300 drivers, the Fusion beat the Camry and Accord in four key areas: styling, quality, performance and handling. Sales for the vehicle have also been excellent. In the United States, Fusion sales have increased 15 percent each month since its launch in 2005. In Canada, it contributed to a 21.5 percent increase in car sales through October 2006 and an overall sales increase of 7 percent. In Brazil, the Fusion has been outselling the competition by 40 percent and has up to three-month waiting lists.
Perhaps most important, more than 40 percent of Fusion buyers are "conquest" buyers – people who were previously driving competing vehicles but who chose the Fusion over the competition.
The Fusion is also an important step in improving our near-term environmental performance. It offers our customers a more fuel-efficient option that compromises nothing in style, performance, safety, quality or functionality. And the Fusion will continue to build our environmental performance in future model years. Hybrid versions of the Fusion and Mercury Milan are planned for 2008. This new hybrid will showcase some of Ford's latest developments in environmentally friendly materials, including recycled, recyclable and renewable materials. In short, the Fusion is leading the way toward the kinds of products Ford will be building for the future.
