In the 1950s and 1960s, GM was a design powerhouse under the leadership of a stylist named Bill Mitchell. Today, the Cobalt and other recently introduced GM models clearly indicate that the automaker is figuring out what makes segment leading products tick, if not how to innovate.

Inside, the 2005 Chevrolet Cobalt is nearly flawless in design. It’s not exciting, but this interior represents a quantum leap over the hoary old Cavalier and is above par for the compact class. Clearly, GM realizes that it must spend time, money, and effort creating great interiors because that’s where you spend the most time.

As proof, check out the matte-finish plastic surfaces inside the Cobalt. Look at the lovely mesh cloth headliner that would be perfectly at home in an Audi. Examine the graining and tones of the various panels and delight in the fact that they either match or are visually complementary. Use the stalks, which no longer feel like saplings snapping under your fingertips. Press the buttons, which all feel solid and refined in action. See how the restrained use of chrome trim gives the Cobalt a just-right degree of sophistication and class. Pictured above is the Cobalt LT with its fake wood trim. On base, LS, and SS Supercharged, it’s replaced by metallic-look plastic.

Not only is the Cobalt’s cabin appealing, but it’s also assembled with care. We found nary a nit to pick, no matter how much poking and prodding we did. Our Cobalt test sample represented extraordinary build quality for GM, and for small cars in general.

Likewise, the layout and design of the controls represents the simplicity and ease of use that anyone can appreciate. The stereo has big volume and tuning knobs, as well as a nice dot-matrix display that keeps information from appearing like a 1980s Casio digital watch. The climate controls are three simple rotary knobs that are easy to see and use. All secondary controls are located right where you expect to find them, are logically labeled, and work with a degree of refinement usually reserved for Asian competitors. Plus, at night, everything is lit up like a Christmas tree, making features and functions easy to find in the dark.

Now, if Chevy could just do something about the Cobalt’s cloying GM new-car smell, which instantly calls to mind every beaten-up, base-model rental car from Avis and National you’ve ever had the displeasure to drive.