2007 Mercedes-Benz E320 Bluetec

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Optional bi-xenon headlights rotate slightly with the steering to better illuminate curves.

The E320 BLUETEC drives through M-B's seven-speed adaptive transmission, which allows manual gear selection by moving the lever slightly left to downshift or right to upshift (there's no separate gate). We questioned the usefulness of this normally much-appreciated feature, however, given the diesel's relatively narrow torque band. To protect the engine from over-revving, it won't downshift above about 2000 rpm, and it won't hold a gear while accelerating. Instead, it merrily upshifts whenever it pleases. Our test car's transmission also was reluctant to downshift from second to first to take advantage of that strong diesel torque to shoot a gap in traffic, a shortcoming worsened by the turbo's substantial low-speed lag.

We found the chassis dynamics well up to M-B standards and slightly improved over previous E-Class sedans, partly due to quicker response (2.8 turns lock-to-lock vs. the previous 3.3) from the speed-sensitive power rack and pinion. The standard ten-way power front seats were supportive and comfortable throughout a long day's drive. Standard safety features include M-B's "PRE-SAFE" system - which senses an impending crash, tightens the belts, repositions the front passenger seat to a more favorable position, and even closes the sunroof - plus eight airbags, active front head restraints, rollover protection, and "Tele Aid," which locates the car via GPS and calls emergency response in case of a severe collision.

The biggest surprise of all, given this sophisticated new diesel V-6's inherent higher cost and all its expensive emissions-cleansing hardware, was the E320 BLUETEC's modest $1000 premium over a comparably equipped gas-powered E-Class sedan. Its starting price of $52,325 is hardly trivial, but it's a flat-out bargain for what it is. We're guessing it's substantially subsidized to make it more attractive until its U.S.-market reputation is assured.

2007 Mercedes-Benz E320 BLUETEC

Base price: $52,325

Engine: 3.0-liter DOHC diesel V-6, 208 hp/388 lb-ft

Transmission: Seven-speed automatic, rear-wheel drive

Length x width x height: 191.0 x 71.7 x 58.4 in

Wheelbase: 112.4 in

Curb weight: 3860 lb

Fuel economy (EPA city/hwy): 27/37 mpg

Major standard features: Dual-zone automatic climate control; glass sunroof; Harman/Kardon Logic 7 premium audio with six-disc CD changer; power tailgate (wagon); heated windshield wipers and washer fluid; multi-function display; ten-way power front seats

Safety features: M-B Pre-Safe system; dual front, front and rear side, and curtain airbags; anti-lock braking, stability control and tire pressure monitors; active front head restraints; daytime running lights (DRLs); Tele Aid emergency response system

Warranty: Four years/50,000 miles

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