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The tools for fixing Ford North America are in the company’s grasp, but it still has to go step by step to avoid angering local employees by farming too many jobs out to overseas plants already producing the best products for today’s needs. Each really big Ford is now like an anchor dragging the company to the icy depths, while European products like the new Ford Kuga small crossover will sell in abundance everywhere on earth.

Built at Ford’s C-platform plant in Saarlouis, Germany, alongside the Focus and C-Max small minivan (another one Mr. Mulally wants for North America, in addition to the larger S-Max), the Kuga was first shown at the 2006 Paris Motor Show as the Iosis X concept, a vehicle designed by Martin Smith.

After a successful stint as head of GM Europe design, Smith jumped to Ford Europe in early 2004—right after Ford executives woke up one morning to find the company was in the deepest doo in the company’s history. Smith has overseen a lot of success stories, and the Ford Europe designs are gradually giving Detroit something great to talk about during the long crawl out of the depths. The Fiesta world compact car is just the start, and these Focus-based products like the Kuga will be the next in line.

So far as the exterior goes, the Kuga defines the “kinetic design” approach being used by Smith and his various teams. We find the look a little busy overall (we dislike the unnecessary accent bulges in the engine hood and busy rear half contours that carry around the rear corners), but the packaging is still attractive and sporty enough to draw in those in need of more eye candy. It was a good sign that people along our drive were honestly admiring the Kuga with glances not unlike those given a new sports car. Well, we were in Italy, where open admiration for any new car goes way beyond that shown in any other nation.

Inside, the Kuga resembles the C-Max small MPV, and all is well apart from the strategy for rear-seat passengers. Rear legroom and hip and shoulder room are compromised by the Kuga body because it sits on the Focus architecture. There are two defined seating spots in the rear in an attempt to be realistic, but even the smallest member of our traveling trio eventually complained about the uncomfortable situation back there, from the squab design itself to the truly limited leg space. (Ford quotes 37.4 inches of length in back, but this is when set at the maximum with the front seats uncomfortably pressed to the windshield.) At this vehicle’s dimensions, such a tradeoff will undoubtedly be a common cause for complaint. However, you have to love our tester’s optional panorama glass roof. At least until the finches crap on it.

Just as North America is weaning itself off the SUV and going nuts for more car-like and frugal crossovers, so is Europe moving up from station wagons to these taller points of view. When we asked a few European colleagues why the Kuga is such a hit on their continent, they said that the Kuga is simply a safer, more comfortable and convenient Ford Focus for smaller families. And we would agree with this in general. We oddly never found a comfortable position for our elbows in this taller Focus during long highway cruising, and this is an interior detail that Ford needs to work on—and not just according to us. Looking down slightly on all of the lower cars scrambling hither and thither on the Italian roads was a good feeling, however.

Whenever a Kuga becomes available for Mr. Mulally and North America, we certainly hope that it can maintain the high quality touchability of all of its surfaces, as well as the full standard features list. All plastics and faux or real leathers feel substantial, and the build is of the highest level. Meanwhile, a full complement of airbags (front, side, and curtain), automated dual-zone climate control, ABS with electronic brake distribution, ESP with traction control and emergency brake assist, and an onboard travel computer are all present at no extra charge.

Our Kuga was a full-time all-wheel-drive loaded Titanium version, and it stands the same 67.3 inches in height as the front-wheel-drive setup. Regardless of any narrowness here and there, the drive feel is tremendously sure of itself, just as on the Focus we’ve always appreciated. Standard wheels and tires are seventeen inches, but our tester came with pleasant eighteen-inch optional rims and treads. (The factory offers up to nineteen inches.) Much like with the Focus, there is a sense on any road surface that you’re in a very stable and sturdy carriage with tires firmly planted. A BMW X3 and Volkswagen Tiguan feel better still, but not by much, and the Kuga price is a good deal when weighed against these fellow Germans. It will look even better once the surely expensive Audi Q5 and Mercedes GLK hit the streets.

At this time, the Kuga is offered with only one engine: the much-liked 134-horsepower 2.0-liter TDCi Duratorq transverse four-cylinder diesel. You’ll hear no complaints from us on this lack of choice, and not just because average mileage hits nearly 35 miles per gallon. While the power builds linearly and assuredly from 2000 to 4000 rpm, the engine’s 236 pound-feet of torque is all available from about 1800 to 2200 rpm. The response from the powertrain is attention-grabbing, and during in-town maneuvering we were wishing for a little more ability to modulate the power/torque outlay. In all other driving situations, however, the reactions of the Kuga are ideal for overtaking and coming out of curves or ascending any gradient of road. To complement the great chassis dynamics and powertrain behavior, Ford has shoed the Kuga with an equally attention-grabbing brake system. Front vented discs are only 11.8 inches in diameter but felt like fifteen-inch ceramics on a Ferrari, and they could also do with a wee bit more modulation in and around town.

The six-speed Durashift manual is the only choice for the time being, and it was not sensational, but not bad either. Within a brief period, there will be a six-speed automatic offered as well as a smaller diesel and the next-generation 2.0-liter gas engine, the latter sounding perfect for North America in 2010.

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Magazine Issue: Winding Road Issue 36