THE STATE OF PERFORMANCE; For OEM performance divisions, things are looking up.(Special Report)

From the earliest days of the automobile, leadership has been measured in terms of vehicle performance. Whether the yardstick was horsepower, handling, racing victories or aerodynamics, an automaker's prestige-and the ability to sell more cars or command higher prices-went hand in hand with performance.

Regulatory and marketplace pressures to address issues of safety, pollution and fuel efficiency took priority and commanded most of the OEMs' engineering resources in the 1970s and '80s, though. These were the nightmare years for performance enthusiasts. Dismal prospects in the showrooms opened the door for the rapid expansion of the aftermarket performance industry, which became a gigantic business that gathers annually at this time of year under the banner of SEMA, the Specialty Equipment Market Association.

But OEMs couldn't abandon the segment. Sales and image demanded that they have their own high profiles. So they acquired big aftermarket companies (as Mercedes-Benz did with AMG) or developed their own skunkworks and marketing arms (such as BMW M Sport or Ford SVT) to stay in the game.

Today, the OEMs are again under pressure, with the accolades that used to come with performance cars going to pioneers in alternative drivetrain technology and high fuel efficiency. Toyota's halo car is now neither a luxury nor a performance model but the Prius hybrid. An energy bill now wending its way through Congress almost certainly will demand steep increases in fuel efficiency.

Will stricter regulations and the greening of the market bring a new dark age for performance-car lovers?

AutoWeek surveyed the performance divisions of top automakers. The results, on the following pages, indicate the state of performance is good. Rather than a new dark age, makers foresee a surge in the segment.

"We are at the dawning of a second muscle-car war,'' says Jamal Hameedi, chief engineer of Ford's SVT. He points to the Ford GT500, Chevrolet Camaro, Nissan GT-R and Dodge Challenger. Ford, he ...