2011 promises to be another good year for Ford’s Fusion family sedan. Introduced in 2005, the Fusion has re-invented the concept of an American car, much like the Taurus did some 20 years ago. Ford, more than any other American automaker, has challenged Honda and Toyota’s longstanding dominance of the family sedan segment by producing a genuinely competitive product that real consumers (not just rental fleets) want to buy.

The Fusion remains basically unchanged for 2011; last year’s major freshening was deemed enough to keep the model current in an evolving marketplace. With attractive, edgy sheet metal and a slew of engine and trim choices (including a hybrid trim), the 2011 Fusion indeed provides stiff competition for the Toyota Camry and Honda Accord, while lagging just behind the all-new (and shockingly competent) Hyundai Sonata.

Much of the 2011 Fusion’s appeal lies in its driving dynamics. Recent American sedans have lacked the sharp handling and smooth drivetrains that lured scores of customers to Honda dealerships, yet Ford has managed to endow the Fusion with a sprightly, almost European demeanor. Though NVH (Noise, Vibration and Harshness) levels are not quite up to the buttery standard set by the Camry, the Fusion’s playful nature and solid construction make it an attractive alternative. Handling is firm rather than plush, and body roll is well controlled. Though it understeers predictably when pushed, the front-wheel-drive Fusion acquits itself quite well on twisty roads with accurate steering and plenty of grip. All-wheel drive (AWD) is optional on upper trim levels and provides an even more surefooted stance.

The base engine for the 2011 Fusion is Ford’s stalwart Duratec four-cylinder. Enlarged to 2.5 liters last year, the inline engine (shared with Mazda) punches out 175 hp and 172 lb-ft of torque. With all-aluminum construction and 16 valves, the four-banger compares well on paper with similar offerings from Honda and Toyota. In practice, however, the glassy idle quality and rev-happy smoothness of the Japanese engines just isn’t present here; the Duratec feels a tad gritty at full whack. The base engine mates to either a manual or automatic transmission, both offering six speeds. While the stick shift is a welcome choice in an American vehicle, it too cannot match the syrupy smoothness of the Honda. The automatic, however, is excellent; shifts are crisp yet smooth, and fuel economy is stellar at 34 mpg highway.

Two V6 motors are offered for the 2011 Fusion. The first, a 3.0-liter variant that makes 240 hp and 223 lb-ft of torque, greatly improves the Fusion’s midrange punch. At the top of the range, a 3.5-liter unit borrowed from the Taurus churns out 263 hp and 249 lb-ft of twist, nearly matching the Camry’s class-leading output and providing very brisk acceleration. Both sixes are much closer to the competition in smoothness, revving quietly and quickly on regular gas. Sadly, no manual transmission is available with either V6. Instead a SelectShift manu-matic version of the six-speed automatic is standard. Six-cylinder Fusions offer optional AWD (a new system of Ford’s own design) with an electronic center differential that sends power fore and aft as needed.

The final power-train choice for the 2011 Fusion is a hot-selling hybrid unit co-developed with Toyota. This eco-friendly system uses a modified variant of the 2.5-liter I4 engine (running on an Atkinson cycle that improves efficiency) that combines with an electric traction motor to deliver 41 mpg in the city and 36 mpg on the highway. Mated to an electronic CVT (continuously variable transmission), the hybrid drivetrain is every bit as sophisticated as those from the market leaders and features a very slick computerized display screen in the instrument cluster that makes extracting maximum mileage downright fun.

With four engines, three transmissions and optional AWD, there is a Fusion to fit every need. However, the versatility evident in the powertrain choices does not extend to the chassis; the 2011 Fusion is available only as a four-door sedan. Though the market doesn’t seem to be clamoring for it, we think a Fusion wagon would be a great alternative to Ford’s bulky SUVs. That said, the Fusion sedan features plenty of cabin space with dimensions that line up well with the Camry and Sonata, while falling slightly short of the limousine-like Accord. Trunk space is also generous; 16.5 cubic feet are on tap, and the rear seats can be folded down to accommodate outsize cargo.

Interior design hasn’t been a strong point for American carmakers of late, but Ford is doing its best to improve matters. Last year’s freshening spruced up the Fusion’s already attractive dashboard with higher quality soft-touch plastics and a new instrument cluster. The clean, symmetrical dash design and comfortable seats make the Fusion a pleasant place to whittle away the miles. Ergonomics are good, if not quite up to Toyota standards, and Ford’s slightly gimmicky "ambient lighting" actually does improve the mood inside. The optional SYNC music system and available navigation are nice touches, but the most impressive technological aspect is the Hybrid model’s interactive instrument panel. As we mentioned above the computerized display not only features crisp, legible readouts for speed and fuel but also offers a leaf-shaped "green-meter" that shows the driver how efficiently he or she is driving. Achieving maximum mileage through gentle acceleration and careful planning is almost as fun as blasting through corners at full throttle.

The 2011 Fusion is available in four trim levels. The base Fusion S is offered only with the four-cylinder motor and starts at just under $20,000, with such niceties as power windows and locks, air-conditioning with cabin filter and 16-inch aluminum wheels. Moving up to the Fusion SE allows buyers to select the smaller, 3.0-liter V6 and comes standard with 17-inch alloys, a six-speaker CD stereo and a chrome-tipped dual exhaust. The SEL trim features the same engine choices as the SE, while making AWD available and adding standard dual-zone automatic climate control, leather upholstery, power seats and unique machined alloy wheels. The penultimate Fusion Sport gets the big, 3.5-liter six standard and adds 18-inch wheels with performance tires, a rear spoiler and firmed-up sport suspension. The top trim level for 2011 is the Fusion Hybrid, which not only nets buyers the nifty instrument display, but also gets special eco-friendly cloth seats, a reverse sensing system and a 6-CD changer.

All 2011 Fusions share a comprehensive suite of safety and security features, including front, side and curtain airbags, seat-belt pretensioners and stability control. Fusion Hybrid models also get a driver’s-side knee airbag that deploys from under the steering column to protect the driver’s legs in a crash. In government crash testing last year’s Fusion received five stars for the driver and passenger in frontal collisions. In side impacts the Fusion earned five stars for front-seat passengers and four stars for rear-seat passengers.

Ford is very close to the bullseye with the 2011 Fusion. While Honda and Toyota continue to set the pace in the family sedan market (with upstart Hyundai’s Sonata nipping at their heels), consumers looking to buy American are no longer faced with the prospect of a cheaply made penalty box on wheels. With a few more refinements (and either a wagon or hatchback version, please!) the Fusion may one day enable Ford to reclaim a position of leadership in the marketplace.