Ford's new hybrids tell Toyota: Catch me if you can

LOS ANGELES -- It's the latest example of U.S. automakers trying to "out-hybrid" Japanese brands that had a head start with the gas savers.

Also today, South Korea's Hyundai is expected to announce that in two years it will market its first U.S. hybrids. They will use a revolutionary lithium polymer battery that the company boasts will hold 20 times the charge in half the size of rivals' present hybrid batteries.

Both announcements are being made at the Los Angeles Auto Show, the first major car forum of the season and a traditional showcase for unveiling high-mileage, low-pollution alternative technologies.

When it comes to hybrids, the developments show how other automakers are hustling to try to get ahead of competition from Toyota's next-generation Prius, to be unveiled in Detroit in January, and General Motor's plug-in Volt, which starts production in 2010.

"This is simply an evolution of what's been happening for a while, but it's accelerated because of gas prices. Prices are down now, but nobody expects they will stay there," says Ron Cogan, publisher of the Green Car Journal and creator of the Green Car of the Year award, to be announced here Thursday.

Hybrids make up only about 3.5% of the U.S. automotive market, Ford says, and even less overseas. But the forecasted return of high gas prices and an increase in government-mandated gas-mileage standards are driving automaker interest.

Ford says it benchmarked its new Fusion and Mercury Milan Hybrid midsize sedans against the Toyota Camry Hybrid.

The new Fords will get government fuel mileage ratings of at least 39 miles per gallon in city driving, a 6 mpg improvement over the similar-size Camry Hybrid, says Nancy Gioia, Ford's hybrid chief. In highway driving, the Fords should be at least 2 mpg better than Camry.

"What we're going to target is customers who do a lot of city driving, (who) really see the benefit of hybrids," Gioia (JOY-ya) says.