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A New Season In Michigan?(ISSUES & INSIGHTS)(EDITORIALS)(Editorial)

Investor's Business Daily

| December 01, 2005 | COPYRIGHT 2005 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Automobiles: For more than 30 years, Detroit, once a fountainhead of ingenuity, blundered through a tedious wasteland of poor car design. By no coincidence, auto industry profits suffered as well.

Uninspired design, of course, isn't the only thing keeping Detroit from making more money. It has had tremendous difficulty containing costs in a highly unionized industry, and owes billions of dollars of benefits to its retirees.

But a failure to make cars that rouse buyers to fly to car lots with a demand that drives up prices has been a problem, as well. Detroit has to offer incentives on many of its models to nudge reluctant buyers. That keeps profit margins low.

Now comes the Pontiac Solstice, long awaited by the industry and car enthusiasts. It has an order list of 13,000 buyers, half of whom won't get the car this year. Pontiac is adding a third shift at its Wilmington, Del., plant just to keep up with demand. The Solstice is a masterstroke for troubled General Motors.

"If all we did was judge a car by its looks, the Solstice would win hands down," Auto Week says. "The Solstice, with its rounded curves and bulging fender flares, is just plain sexy. Plus, it doesn't look like anything else on the road. . . . Driving one causes a stir."

The Los Angeles Times calls the Solstice "Bold and Beautiful" in a headline over a review that, while not gushing, freely compliments General Motors for offering "a tantalizing glimpse of what's possible when the company gets serious about design."

Forbes declares the Solstice is "eye candy that turns heads wherever it is driven." Cleveland Plain Dealer auto editor Christopher Jensen says "the striking ...

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