introduced last year--the $39,900 E300D, powered by a 3.0-liter dohc 24-valve 6-cyl.

diesel, and the $43,500 E320, with a 3.2-liter dohc 24-valve inline six. The only

styling element that sets the E420 apart from the other members of the line is its

5-spoke alloy wheels.

The new E-Class cars are slightly larger than the previous model line, which means

more head, leg and shoulder room. Shaped in wind tunnels, the body has a coefficient

of drag (Cd) of just 0.29, which is at the forefront for any car sold in the U.S. A

low Cd means better fuel economy, as well as reduced wind noise.

The E420 is packed with the usual Mercedes luxury features--think of one, it's

there--but the heart of its story is the new engine, which is loaded with leading edge

technology.

One of the most intriguing items under this heading is the variable camshaft

timing, which adjusts the opening and closing of the intake valves to optimize power

and torque throughout the operating range of the engine. That means high output with

low emissions, a smooth idle, higher midrange torque and increased power at peak rpm.

As is common these days, the E420 replaces the traditional ignition distributor

with direct ignition. There is one dual-firing coil for each pair of cylinders, with

detonation (knock) sensors mounted directly over the sparkplugs. Ignition timing can

be altered from one engine revolution to the next, for optimum combustion efficiency.

Again, the benefit is more power, better emissions performance, better fuel economy.

Obviously, there's an exceptionally sophisticated electronics system involved

here. The new Bosch Motronic engine management system controls the ignition and fuel

injection systems, and is also linked to the control units for the automatic

transmission, the traction control system, the antilock brakes and the new Electronic

Stability Program (ESP). This electronic link lets the individual systems -talk+ to

each other and interact as necessary.

The Electronic Stability Program (ESP), an E420 option, is one of the great safety

developments of recent years. Using a system of electronic sensors and sophisticated

computer logic, ESP reviews the car's behavior every micro-second to determine if it's

going in the direction it's being steered. If not, the system selectively brakes one

or more wheels and/or reduces engine power to get the car back on track.

In most situations, the driver probably won't even realize that ESP is at work.

But there will be no doubt of its helpful hand if a serious skid develops. The

system's ability to restore stable driving is just this side of magic.

The new V8's robust 275 hp flows through a new 5-speed automatic transmission on

its way to the rear wheels. It's computer-controlled, of course, and adapts to varying

conditions as well as the driver's style. The shift program is constantly adjusted

according to dynamic factors like load, road incline and throttle movement.

A lockup torque convertor operates in the top three gears to optimize fuel

efficiency, and a winter shift program, which starts the car off in second gear,

virtually eliminates wheelspin on slippery surfaces.

Also standard on the E420 are dual front airbags, plus side airbags mounted in the

front doors. The steel structure surrounding occupants is more rigid than the previous

E-Class cars, and there are larger front and rear crumple zones to absorb the energy

of a collision. Automatic seatbelt tensioners hold occupants firmly in place during an

impact.