Positioned as an upscale alternative to the Ford Fusion Hybrid, Mercury's Milan Hybrid promises to offer plenty of cabin space and luxury in a fuel-efficient package. Built around a 2.5-liter inline four-cylinder engine coupled to an electric motor, the Milan Hybrid debuted as a 2010 model.

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"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."

The Milan Hybrid can operate up to 47 mph in pure electric mode, approximately twice as fast as some competitors. Plus, the city driving range on a single tank of gas is expected to be more than 700 miles.

Mated to a CVT transmission, the hybrid delivers 155 horsepower and 136 pound-feet of torque. An upgraded nickel-metal hydride battery is said to be 20 percent more powerful than previous batteries used in Ford hybrids.

Mercury says the hybrid Milan will trump the Toyota Camry Hybrid by at least 5 mpg in the city. The Camry is EPA-rated at 33 mpg.

Standard equipment includes a single CD player with MP3 capability, cloth or leather seats, and six airbags (dual front, dual front side impact, and dual curtain). Options include a touch screen navigation system, a new hands-free system dubbed "Sync" that allows the driver to make phone calls or control the audio system via voice commands, and a metallic interior trim package.