The race to make cars stylish, frugal — and fun

DETROIT — In secure conference rooms, engineering centers and design studios across Detroit, Chrysler, Ford and General Motors are working to create a new generation of fuel-efficient vehicles without repeating their mistakes of the past.

They are honing new technologies, refining designs and scouring the Earth for fun, fuel-efficient cars they can build or sell in North America. From Chevrolet Corvettes and Ford F-150s to small cars engineered in Europe and Asia, every vehicle is being rethought as fuel prices skyrocket and new fuel-economy rules loom.

Haunting their efforts is the ghost of failures past. Detroit's automakers reduced emissions and fuel consumption in the '70s and '80s, but at the cost of style, performance, quality and reliability — the things that make a car desirable.

The things that keep a car company in business.

Chrysler, Ford and GM can't afford to blow it again, and getting it right this time presents huge opportunities. Unlike the 1980s, when small Japanese cars started the race a full lap ahead of the Detroit Three, the new technical challenges are equally daunting for everyone. "They've all been dealt the same hand this time," said Michelle Krebs, editor of AutoObserver.com. "Now it's a matter of how they play it."

Every automaker is scrambling. Even Ferrari just announced it is eyeing two technologies GM and Volkswagen already offer and that Ford will use to boost F-150 fuel economy.

In labs and on test tracks around the world, GM and Toyota are racing to be first and best on the road with extended-range electric vehicles, cars that go up to 40 miles on battery power and use their engines only for occasional recharging.

Ford and GM have tapped their European operations for compact and subcompact cars such as the Ford Fiesta.

GM has imported its Opel Astra as a Saturn, and Asian engineering centers are working on a funky little Chevrolet to challenge Toyota's hip Scion brand.

"Any manufacturer that doesn't make vehicles that are appealing and enjoyable will suffer," said Rebecca Lindland, analyst with Global Insight of Lexington, Mass. "Somebody else will build that car, and the American people will buy it."

But, how?

The answer lies in advanced engine technologies, widespread use of technologies borrowed from hybrid cars, lightweight materials and creative design. Along the way, the big SUV will virtually disappear and well-equipped small cars like those that dominate Europe will become common.

The automakers that offer style, fuel economy and fun will win. Those that don't may be left at the starting line.

"A car that's fun doesn't have to be blindingly fast," said Jim Hall, director of 2953 Analytics, a Birmingham, Mich., consulting and forecasting firm.

The public's view of Detroit products remains one of gas guzzlers and lousy quality, regardless of improvements already made. Now, the massive, fast changes every automaker must make in the next few years could be Detroit's last chance to hit the reset button on how the American public sees them.

Those are the stakes. Here are the tools they'll use:

Auto stop. Systems that shut engines off at stoplights and when the vehicle is idling are already key to hybrids' fuel efficiency. They will become nearly universal on all new vehicles. Look for widespread applications in high-volume cars soon.

Booster batteries. A new generation of small, powerful batteries and electric motors will provide extra power for acceleration, much like today's "mild hybrids," allowing vehicles with engines as small as 1.0 liter.

This boosts fuel economy significantly because the little engine provides all the power necessary for steady-speed cruising. The batteries and motor supplement them to provide confident acceleration from a stop and on highway entrance ramps. GM will launch the batteries in 2010 and plans to use them in large numbers of vehicles around the world.

Turbocharging and direct injection. V8 power from four-cylinder engines. The Pontiac Solstice GXP wrings 260 horsepower from a turbo DI 2.0-liter engine. Ford will offer the combination in virtually every model it builds, including a V6 F-150 pickup in 2010.

Diesel. Imagine the head-snapping acceleration of 297 pound-feet of torque and 40-plus mpg. That's what GM scored in European tests of a 1.9-liter twin-turbo Saab 9-3.

Compression-ignition gasoline engines. Look for fuel-efficiency improvements up to 50 percent from gasoline engines that run like diesels but produce fewer emissions. GM is pursuing the technology aggressively.

Transmissions. Every leading compact car will move to six-speed automatics. Larger cars will have even more gears.

Dual-clutch systems. These combine the efficiency and sporty character of a manual with the ease and comfort of an automatic. They are currently common in VW cars and loom large in Ford and Chrysler's plans.

Plug-in hybrids. Electric power isn't just about fuel efficiency, Car and Driver editor Csaba Csere recently pointed out. The Chevrolet Volt's "battery has enough juice to produce 644 horsepower for one minute," Csere wrote, predicting that plug-in hybrids would become "the hot rods of the 21st century."

Aerodynamics. The science and art of crafting fuel-efficient shapes has come light years since the 1980s jellybean look.

"Brand identity is vital," said Michael Simcoe, GM chief of exterior design for North America. "Aerodynamics won't drive the sameness of design you saw in the past. " Designers will spend more time on vehicle underbodies to reduce drag and tweaking trim in ways that have little visual impact but improve aerodynamics significantly, he said.