The New S550: Sportier, Sexier, More Expensive

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A lot has been written about how complicated it is to make these sorts of adjustments on German cars, especially using BMW's I-Drive system. But I didn't find the Mercedes command system hard to use. As with a BMW, you manipulate the control knob to scroll through various menus. The Mercedes' advantage is that the commands actually register when you push down on the knob, which didn't always happen during my experiments with BMW's I-Drive.

CONTROLLED CRUISING.

You can learn the basics of the Mercedes system just by fiddling around with it for a few minutes, but you'll have to study the 700-page owner's manual to make full use of the S550's technology. There are override buttons if you really get stuck, and you can use voice commands if you're into talking to your car (I'm not). But the best way to learn how to do even simple things -- like operating the radio or using the navigation system's destination and search functions -- is via screen commands.

Several of the S550's most advanced features are worthy of special mention. The optional adaptive cruise control ($2,850) requires a real leap of faith to use, but it works. It locks the S550 in on the car directly ahead of you, braking and accelerating automatically to maintain a set distance behind the other car. It has an easy-to-adjust top speed setting -- so if the car ahead of you suddenly accelerates to an unsafe speed, the S550 won't just blindly follow along.

Mercedes says about half of all buyers so far are opting for the night vision system, which costs an extra $1,775. It's great fun -- the resolution is so good you can read street signs -- but I'm not sure how useful it is. It showed an image of the road and surrounding area that extended a little farther and wider than I could see. But looking down at the little screen was so mesmerizing that it was more distracting than safety-enhancing. I wasn't able to test the system in heavy weather, but Mercedes says it works in fog, rain, and snow, which would be very useful.

WAIT AND SEE.

A couple of comfort features are also worth singling out. The separate front and rear sunroofs give the cabin an airy, open feel. And the S550's ride is exceptionally smooth, largely due to an electronic damping system that easily absorbs even major potholes. For an extra $3,900 you can add Active Body Control, which steadies the ride even more during cornering and braking.

But as much as I love this car, I can't give it five stars. For one thing, it remains to be seen whether Mercedes has resolved the quality problems that plagued the previous S Class sedans. The S550 is also very pricey, even compared to rival German luxury cars. It starts at $86,175 and easily tops $100,000 with options. The AMG version of the car will probably cost about $25,000 more, while the S600 (which only comes fully loaded) goes for a whopping $140,675.

JUST A DREAM.

By comparison, an '06 BMW 750i starts at $72,495 and a long-wheelbase version of the '06 Audi A8 Quattro at $72,810 -- while a fully loaded Cadillac STS can be had for around $60,000 (see BW Online, 12/7/05, "Caddie's STS: From Zero To Wow").

The bottom line: The S550 can match or beat its main rivals on just about everything but price. If price is a concern -- and when isn't it? -- the S550 is a wonderful car, but a bit of a flight of fancy.

Click here to see a slide show of the 2007 Mercedes-Benz S550

Thane Peterson reviews cars for BusinessWeek.com.