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The E320 CDI's engine makes 201 hp at 4,200 rpm, and 369 lb.-ft. of torque through the range of 1,800 to 2,600 rpm.

The emissions question hasn't been fully resolved as yet. As it stands, the E320 CDI meets the requirements of 45 states. It cannot yet be sold in New York, California, Maine, Massachusetts, or Vermont. Mercedes-Benz expects to meet 50-state emissions standards in 2007. By then, new regulations will be in effect, which order a dramatic drop in the amount of sulfur that's permitted in diesel fuel.


Only occasionally while on the road can you discern that you're driving a diesel. The E320 CDI's engine starts normally and the sedan drives normally. You might hear a slight engine rattle now and then, and only for a moment. The diesel sedan accelerates smoothly and effortlessly, but rather uneventfully. Speed rises with some rapidity as you push on the pedal, but there's little sensation of accelerating hard. Because the engine's torque peak is at low speeds, there's little need to operate at high rpm. Don't expect any odors, either, like diesels of the past. Everything is quiet and serene, just about like any E-Class model.


Achieving the EPA's highway rating of 37 mpg isn't so easy. Any driver should be able to top 30 mpg without much trouble, however—and approach 35 mpg by maintaining a gentle throttle foot.


Dealerships should have the E320 CDI by mid-April, but only 3,000 will be available in the U.S. this year. Priced at just under $50,000, the E320 CDI is just above the figure for a gasoline-powered E-Class sedan. No Sport or Appearance Package will be available on the diesel.


Mercedes-Benz will be courting both the 200,000 existing diesel owners and new prospects. These are people who "pride themselves on making smart choices," Makris said, and typically feel a kinship with other diesel enthusiasts. (www.mbusa.com)


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E-Class highlights
Price range: $49220 - $81575
Best fuel economy: 27 city / 37 hwy, mpg
Horsepower range: 201 - 469

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