While Ford managed to avoid federal bailout money, it will be held to the same standards as other domestic manufacturers.

Better fuel economy is the order of the day. Ford already had the Lincoln MKZ in the pipeline before the crisis hit and to Ford’s credit it was already designed with improvements and enhancements to make it better than the previous model.

So Lincoln takes the same route as Lexus and other manufacturers by upgrading a standard-issue sedan from the mainstream line and transforming it into a luxury vehicle.

Sometimes this works – and sometimes it doesn’t. Last year it did not work – the 2009 MKZ (Ford Fusion) is a case in point – but this year the new 2010 MKZ is more than just a new grille, taillights, nice leather and Lincoln badges.

For 2010 there is new sheet metal and signature design cues starting with a new nose led by Lincoln’s handsome split-wing grille. The rear has been freshened and sports larger LED tail lamps that look less Saturnlike. The optional 18-inch alloy wheels add a luxury touch.

Let’s get to the MKZ’s heartbeat. Lincoln uses the 3.5-liter Ford V-6 Duratec engine. In the MKZ this engine provides 263 horsepower at 6,250 rpm and 249 feet-pounds of torque at 4,500 rpm on regular gasoline.

The power is directed through a six-speed SelectShift automatic transmission outfitted with low gearing in the first couple of gears for better acceleration and higher gearing on the back end for better highway mileage. The new standard Select- Shift transmission provides you with the option to shift for yourself.

The front-wheel-drive MKZ model delivers respectable fuel economy at 18 mpg city and 27 mpg highway. My test car was the all-wheel-drive version that gets slightly less per gallon at 17 city and 24 highway.

Buyers will be pleasantly surprised by the interior because Lincoln did a major makeover and upgrade. The MKZ’s cabin displays a more upscale look featuring genuine aluminum and real wood (instead of cheap plastic look-alikes) depending on the trim package. Looking straight ahead, the retro gauges in square housings have been replaced by an all-new instrument panel with easier-to-read round gauges and a contemporary 8-inch high-resolution navigation screen. Other changes include new lighting, chimes, tuxedo stitching on seats and Bridge of Weir leather, the world-renowned luxury leather from Scotland.

While the MKZ is a luxury vehicle, the seats could be more supportive. The rear seats are a little short on the bottom and leg room is a little tight. Overall the MKZ is quieter and more solid feeling due several new sound-reduction measures.

Another noticeable improvement is the MKZ’s ride and handling. Lincoln changed the control point of the rear suspension’s lower control arm to move the roll center closer to the center of gravity, which improves the ride-handling characteristics. The turning circle has been reduced as well.

My AWD test vehicle had the optional 18-inch alloy wheels with 225/45 Goodyear tires that provided decent grip. The all-wheel-drive system has been retuned for better traction and lower noise, vibration and harshness. The AWD system works in conjunction with brake traction control to provide more confidence to drivers. Ford’s AdvanceTrac with electronic stability control is standard and keeps you in command as well.

Taking the MKZ out on the road, I liked how the new engine provided improved performance. Stomp the pedal and you’ll be rewarded with a new 0-60 mph time of 7.1 seconds, down from 7.7 seconds, according to Lincoln’s stopwatch. I could feel the extra performance; the car also felt more responsive than the previous model when pulling away from lights.

The MKZ is packed with segment-exclusive features, including a first-in-class blind spot information system with cross traffic alert, which adds electronic aids to help navigate traffic and parking lots easier and safer.

The system tracks vehicles in the blind-spot zones on either side of the vehicle using two multiple-beam radar modules behind the rear fenders. Indicator lights located in the outside rearview mirrors warn the driver when a vehicle enters the defined blind-spot zone, extending from the side mirror to 10 feet behind the vehicle and 10 feet away from the vehicle. This feature actually saved me while driving on the Edens Expy. when a Mini zipped into one of my blind spots and the system warned me before I started my lane change. In addition to this new technology for midsize sedans, MKZ offers SYNC with 911 assist and vehicle health report, next-generation voice-activated navigation, keyless entry, the easy fuel capless fuel-filler system, THX-branded audio and adaptive HID headlamps.

My test MKZ vehicle had a base price of $36,005 and an as-tested price of $43,345 after $6,390 of options was added along with the $850 destination charge. The MKZ’s list of goodies included the technology package, navigation package, power moon roof, leather wheel, dual-zone climate control, floor mats and aluminum trim.

The verdict: All the changes make this much a better car for 2010. It looks better, rides better, is faster and offers more high-tech features.

2010 LINCOLN MKZ

ENGINE: 263-horsepower 3.5-liter V-6 Duratec

TRANSMISSION: six-speed automatic

DRIVETRAIN: all-wheel drive

FUEL ECONOMY: 17 city/24 highway

BASE PRICE: $36,005

AS TESTED: $43,345

WEB SITE: Lincoln.com