sleek sedan moves off with authority. As the tachometer needle climbs, it's

increasingly obvious that the car under you wants to get on with it. There's a

restless urgency here that's rare in a luxury car.

That's the result of a 4.2-liter aluminum V8 with twin overhead camshafts and 32

valves, an engine that's made the latest addition to the Mercedes-Benz E-Class--the

E420--one of the most delightful combinations of performance and luxury in its class.

BMW's 540i used to have sole possession of the honor. Now it can be viewed as a tie

ballgame.

There's more here than the new engine, of course. And, where it counts the most,

less. When the E420 rolled into showrooms in April, its $49,900 pricetag was $2600

less than the previous model. Adjusted for additional new standard equipment,

including door-mounted side airbags, that represents a 9.7 percent price reduction.