Ford Fusion Hybrid

DETROIT, Nov 17 (Reuters) – Ford Motor Co’s  Fusion mid-size sedan was named Motor Trend magazine’s 2010 “car of the year” on Tuesday, adding to the perception that changes to the No. 2 U.S. automaker’s vehicle lineup are gaining traction.

The Fusion was chosen best of 23 new or significantly upgraded vehicles that were eligible for the award after a week of testing, Motor Trend said.

Motor Trend said the full range of Fusion models was impressive to the judges, from the four-cylinder entry level vehicles to the all-wheel drive sport and hybrid versions.

The Fusion, which has become one of the top 10 selling vehicles in the United States and was redesigned for 2010, exceeded its previous annual sales peak earlier in November. The car was launched initially by Ford in 2006.

Ford posted a nearly $1 billion third-quarter profit that surprised Wall Street analysts this month and is the only large U.S. automaker not to reorganize in bankruptcy with U.S. government support in 2009.

The automaker’s shares reached a more than two-year high on Tuesday, a day after billionaire investor George Soros’ hedge fund disclosed taking a 7.3 million share stake in Ford during the third quarter.

U.S. 2009 sales of the Fusion were up 15 percent through October at 148,045 but trail Toyota Motor Corp’s (7203.T) Camry and Honda Motor Co Ltd’s (7267.T) Accord in the mid-size sedan segment, one of the key areas in the U.S. market.

Dearborn, Michigan-based Ford has looked to set itself apart from U.S. rivals General Motors Co [GM.UL] and Chrysler Group LLC, which reorganized under government-funded bankruptcies this year, and increasingly uses Toyota and Honda as benchmark competitors.

Ford’s sales of the Fusion surpassed the previous full year sales record of 149,552 vehicles earlier in November. That record was set in 2007.

Sales of the vehicle have helped keep Ford’s U.S. sales declines for 2009 slower than the drop in the industry overall. Through October, Ford’s U.S. sales are down 20.4 percent for the year, while the industry is down 26 percent.

Ford shares were up 22 cents, or 2.5 percent, at $8.93 Tuesday on the New York Stock Exchange. Earlier on Tuesday, the stock reached $9, a more than two year high that is also a nearly 29 percent rise since Ford posted its third quarter earnings in early November.