The Ecotec 2.4L four-cylinder engine features variable valve timing and puts out a right respectable 169 hp and 160 lb-ft of torque. And to make the most of that power and torque, the 2008 Malibu LTZ is fitted with a six-speed automatic transmission, a rarity in the segment (only the Volkswagen Passat and forthcoming Mazda6 offer six speeds). Lesser 2.4L Malibu models make do with four-speeds, but as production ramps up, the six will proliferate throughout the lineup. Not surprisingly, the Malibu offers the broadest gear ratio spread in the segment, which portends sprightly acceleration. Countering that expectation, however, is a fairly hefty curb weight of 3503 lb -- that's 165 lb heavier than the largest-in-class Hyundai Sonata. With the hammer down, the extra cogs help the Malibu overcome its 8.4 percent weight-to-power deficit, accelerating to 60 mph in just 8.7 sec and crossing the quarter-mile mark in 16.7 sec at 84.3 mph. After all, if you need jack-rabbit acceleration you'll pop for the 252-hp, 3.6L V-6 Malibu. Driven more normally, the transmission is programmed to maximize fuel economy by shifting up to the highest practical gear as quickly as possible. It pays off on the EPA dynamometers with ratings of 22 mpg city/30 mpg highway (among chief rivals with automatic transmissions, only the Hyundai Sonata and Nissan Altima top Malibu's combined thrift), but out in the real world this strategy gives the car a slightly lethargic demeanor.

Great combination of sport and luxury bettered only by Camry. America's best and segment's best-looking.

Peruse the test data, and the Accord and Malibu perform about as similarly as possible: 0 to 60 is a push; the quarter mile goes to the Accord by a tenth; 60 to 0 to the Malibu by four feet; lateral acceleration separated by a scant 0.01 g; and a figure-eight advantage to the Chevy by 0.4 second. It's plausible that the numbers represent two runs by the same car. But that's where the similarities end. Whether it's the curvaceous sheetmetal and 18-inch alloys or the paddle shifters and ergonomically sound layout of the luxurious interior, the Malibu emerges as the more engaging of the two. On a curvy road, the Chevy heightens the fun factor, providing superior ride composure, the ability to perform fingertip shifts, and communicative, albeit slightly heavy, steering that carves tighter, crisper lines. Hop on the highway, and the Malibu continues to separate itself, delivering a softer, quieter ride and power that, while down 14 horses, seems to pull more strongly and naturally. Of course, the Chevy isn't without fault. The brake pedal was deemed mushier than the others'. Its observed fuel economy of 16.3 mpg was the worst of the bunch, possibly a byproduct of its portly 3684-pound curb weight. The back seat, while roomy, suffered from lackluster comfort, no headrest for the middle passenger, and the least shoulder room. And when shifting into manual mode, the transmission doesn't automatically drop down to a lower gear.

Clean lines. Tight body panel gaps. Nice detailing. And how about that interior? Maybe they've got something here.

The LTZ's 6.4-second 0-to-60 time is class-competitive, and the ride/handling balance feels sophisticated and spot-on for this market segment. The base powertrain is a 169-horse, I-4, and, for the first time in a Malibu, there's a hybrid model as well. Several editors comment the steering is artificially heavy: lots of dialed-in weight, not to be confused with road feel. And a few of those interior plastic bits still aren't up to the best of the Japanese, although its controls are a lot easier to navigate than the Accord's.

What they did right: The combination of the 252-horsepower DOHC V-6 and six-speed automatic is one of the best power teams offered in any midsize car. Room for improvement: Where's the navigation option?

All model variants get OnStar with turn-by-turn navigation, XM radio, six airbags, ABS and traction control, a rear window sunshade, and a 110-volt power outlet as standard. Mid-level LTs can be had with suede seat inserts and two-tone interior trim; LTZs get a choice of two-tone leather seating with Jaguar/Connolly hide-inspired contrasting piping. These are the dressiest Chevy interiors this side of the $8005 optional Draexlmaier Corvette package. It even sounds upscale inside, where dramatic acoustic countermeasures -- laminated windshield and front-side window glass, side-door acoustic vapor barriers, composite fender liners, and absorptive pads in the carpet, dash, and trunk liners -- bring a library-like hush to all models at highway speeds.

I drove this Malibu more than 130 miles in one day, and the trip computer indicated that I averaged 29 mpg--not too bad in a biggish sedan like this. A Toyota Camry Hybrid would get better even mileage (as we found in our Four Seasons test), but the Toyota's base price is about $1000 more than the Malibu Hybrid's. Still, the Camry's 34-mpg combined EPA rating is worth that premium when you consider the Malibu Hybrid's less impressive 27-mpg combined economy rating. (Why the big difference? The most noticeable difference is that, unlike the Camry, the Malibu's engine doesn't turn off in coasting situations. The Chevy's powerplant does switch off while you're waiting at traffic lights, though.) With better steering and a slightly tighter suspension setup, the Malibu is more fun to drive than its most obvious competitor, and I like its looks better as well.

I had an opportunity to briefly drive a Malibu LTZ equipped with the new powertrain. Launch acceleration is crisp and strong, but with only 169 hp on tap, acceleration from 30 to 60 mph is a bit slow, so I put the gearshift lever into M, for Manual mode, and used the steering wheel-mounted paddle shifters to downshift (push them forward) or upshift (pull them back). With that maneuver, there was plenty of power, and the gearbox easily held revs past 6000 rpm. Unlike most of GM's four-cylinder engines from the past twenty years, this one actually feels and sounds refined and quiet. I was able to drive the car for only about 10 minutes on a freeway loop, but it appears to be a well-engineered piece and an effective challenger for the highly regarded four-cylinder powertrains in the Toyota Camry, Honda Accord, Nissan Altima, and Hyundai Sonata, none of which is offered with a six-speed automatic. The six-speed has gains in efficiency, too, increasing the four-cylinder Malibu's highway fuel economy from 30 mpg to 32 mpg, which beats Camry and Accord, which both are rated at 31 mpg. The six-speed automatic Malibu gets 22 mpg in the city, the same as it gets with the four-speed automatic. The six-speed automatic initially is exclusively offered in the top-spec LTZ model, which will cost $26,545, including destination, as a 2008 model.

It takes only a quick scan of the Malibu Hybrid's window sticker to see its appeal. At a base price of $22,790, the Chevy undercuts the hybrid versions of the Nissan Altima and the Toyota Camry by some $3000, making it one of the least expensive hybrid vehicles in America. The Nissan and the Toyota each return an impressive 34 mpg in the EPA combined fuel economy cycle, while the Malibu manages only 27 mpg. But driving pleasure is a different story. The Japanese sedans both feel compromised in their pursuit of ultimate economy, but the Malibu Hybrid has a smooth, unobtrusive powertrain and a nicely tuned chassis. The Chevy also wins in the steering department, although its electrically assisted rack won't keep Porsche engineers awake at night. Furthermore, the Malibu's acceleration suffers due to the long gearing of its antiquated, four-speed automatic transmission. GM needs to integrate its six-speed automatic, posthaste. Overall, though, the Malibu Hybrid drives just like the four-cylinder Malibu. And that's high praise, indeed.

There is nothing wrong with electric power steering, as Volkswagen has proved with the new GTI, but GM can't seem to perfect it. Aside from that, the Malibu's properly tuned front-strut, rear-multilink suspension and long, 112-inch wheelbase help it ride better than the softer, floatier Camry. The Chevy soaks up dips in the road fluidly, with little secondary jiggle, and the brake pedal feels firm, with progressive movement. The LTZ model gets eighteen-inch tires, the LT has seventeens, and the base LS has sixteens. GM's 2.4-liter Ecotec four-cylinder is on duty, with a 252-hp, 3.6-liter DOHC V-6 optional on the LT and LTZ models. For most of the model year, the four will be mated to a four-speed automatic, but a six-speed auto will gradually come on-stream. The V-6 gets the six-speed automatic at launch and, naturally, is all the better for it, although that engine's tonal quality is still not quite as refined as the Camry's silky V-6. The same hybrid powertrain that's available in the Aura is also offered.

"This is the best Chevrolet family sedan I've ever driven." No, that's not from a Chevy TV ad; it was uttered spontaneously by one of our drivers after a twenty-mile thrash on challenging roads. Enough of us agree with that assessment to put the good-looking new sedan on the All-Star list with cars costing several times more. The Malibu might not be quite as good as Bob Lutz claimed after the car's Detroit show introduction, but it's not far off. Smooth, quiet, very well-finished, and more than able to keep up with more powerful cars, it represents a true sea change in what GM is offering the public. Substance, not appearance, is what makes the Malibu an All-Star. Its six-speed automatic is worlds away from the two-speed Powerglides of yore, and it contributes to the relaxed feel of the car. The Malibu's V-6 gives away sixteen horses to the Honda Accord yet kept up with it effortlessly.

The all-new Chevrolet Malibu has all the size, room, features and conveniences a middle-of-the-market sedan needs to be competitive, and the fits and finishes inside and out are world-class. They have indeed built a car we can't ignore. We think the new Chevy Malibu stands up well to the best in its class, including the Toyota Camry and Honda Accord.