Well, it depends on if we're comparing the 2009 Fusion to the 2009 Malibu. While my preference would lie with the Fusion based on the fact that I can nab it with a 2.3L MZR and a 5-speed manual, yeah, that makes a lot of sense. But otherwise, I may end up leaning toward the Malibu when you start packing the options on. Especially if we're talking about the LTZ model.
But, the tables turn completely with the 2010 model. I think the only car in GM's current lineup that will be able to compete with it in terms of quality, looks and performance, it will be the new Buick LaCrosse. Which starts weeeel above that of the Fusion. Until the Insignia shows up in some tangible way as a Malibu replacement, GM is going to need to work very hard to improve the current car to make it better than the Fusion.
Lets be honest:
A 2010 Fusion SE with the 2.5L I4, a 5-speed manual, and the Mondeo five-spoke wheels rolling on sport rubber and the sport tuned suspension... Available at $22,600 (with the sales tax available as a write-off for 2010). Wow. Its a steal. Beyond that, where the Fusion price leaves off, that's where Malibu pricing starts. Poop.