Detroit's New Push for Better Interiors

After years of ignoring interiors in favor of horsepower, Detroit is finally discovering its inner beauty

by Jim Henry

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Finally, it seems Detroit is figuring out what Japanese and European automakers have known for years: Inner beauty is the path to success.

For too long U.S. automakers kept costs down by focusing more on what was under the hood than on what was under the roof. They believed if their typical buyer had to choose between horsepower and design aesthetics, the ponies would always win. The resulting interior of the average American car was a bland expanse of poorly fitting, low-quality plastic and cheap chrome.

But after years of talking about improving their interiors, at long last Detroit is doing it. The recent North American International Auto Show in Detroit was a strong indication that Detroit is now pushing to compete with the Toyota Motors (TM) and BMWs (BMWG) of the world, both inside and out. Two cars at the show provided strong examples of how U.S. carmakers are beginning to get it right.

GM's Malibu Makeover

The 2008 Chevy Malibu, one of General Motors' (GM) most important releases in years, has lived up to the enormous hype of its monster marketing campaign. Externally, the car is a big improvement over the bland outgoing model, but the inside is the real revelation.

In fact, a panel of journalists chose the 2008 Chevrolet Malibu as the North American Car of the Year at the show. "For me, the whole inside is what tipped me over. I like the outside, but the interior is just so nice and so well-proportioned and so modern, it's just a joy to be in," says Jim McCraw, a freelance journalist and one of 45 members of the Car of the Year jury. "They've upgraded the quality of the materials," he says.

Manufacturing tolerances are tighter for the new Malibu than for previous models, says Chevrolet's General Manager Ed Peper. The improved fit and finish reduces squeaks and rattles and increases customer-perceived value. Peper bragged that improved quality, plus a high level of standard features including satellite radio and an upgraded version of GM's OnStar communication system will make people feel like they're getting a "$40,000 car for $20,000."

The Malibu is aimed squarely at the reigning midsize sales champs, the Toyota Camry and Honda Accord (BusinessWeek.com, 11/19/07), both known for offering simple, comfortable, and well-made interiors at competitive prices.

Much of the reason GM can afford to spend more money on interiors is that it's cutting costs in other areas, by sharing parts such as wiring, windshield wiper motors, and air-conditioner compressors that are out of the sights and minds of customers, and putting that money into higher-quality interiors.

Ford's High-Quality Concept

The other American-made standout was the subcompact Verve concept from Ford Motor (F) that's expected to come to market in the U.S. by 2010. The Verve, which was designed in Europe and reflects a European design aesthetic, will be sold globally.

The interior is simple and sporty, with high-quality materials that look and feel good, especially for a small car. Wing-shaped buttons in the center "stack" control heating, ventilation, air conditioning, the telephone, and other features.

Carmakers are also betting that cool new technology features will be as well received as more stylish dashboards. For example, working with Microsoft (MSFT), Ford has developed Sync, a factory-installed, voice-activated command system that lets drivers make hands-free calls, listen to audible text messages, and play music from the radio or a mobile device.