sophisticated package, with twin single overhead camshafts and two spark plugs per cylinder. Made of

aluminum, it's 100 pounds lighter than the old V6. Horsepower is up from 217 to 221, and fuel economy has

been improved as well. In current form, it meets the LEV, or Low-Emission Vehicle, standards, and with

only minor changes should meet the challenging Ultra-Low-Emission mandate California is about to put

into effect.

With plenty of torque at the low end, the new V6 seems better suited to U.S. driving conditions than

the old powerplant. It's mated to a slick 5-speed automatic. Our only grumble is that it takes too long

to downshift for a quick pass.

A new turbodiesel engine gets 26/34 EPA mpg city/highway, yet delivers 174 horsepower, up from last year's

134-hp normally aspirated diesel.

The popularity of sport-utility vehicles has led to heightened awareness of the advantages of four-wheel

drive. So Mercedes is offering a new all-wheel-drive system for the E-Class this year. It has a full-time

35/65 percent front-to-rear torque split, meaning most of the power goes to the rear wheels when cruising

down the highway. But if those rear wheels start to lose traction and spin, a computerized traction control

system shifts torque to the wheels with the best traction; it does this by regulating the brakes. This is a

$2750 option, bringing the base E320 AWD in at $49,250. That seems like a bargain compared with the old

$61,700 300TE 4Matic.

Another new active safety feature is called Brake Assist. After studying countless accident reports,

Mercedes engineers discovered drivers often fail to apply enough brake pressure in emergency situations, or they ease off when they feel the brake pedal pulsating as the anti-lock braking system cuts in. These people crash harder than they would have had they used the brakes to their fullest potential. Brake Assist's computer system has a complex algorithm built in designed to recognize panic stops and, with lightning speed, it applies full braking force.