2008 Mercedes-Benz C-Class Test Drive

Best Baby Benz Yet

With the new C-Class, Mercedes-Benz once again takes dead aim at the BMW 3 Series.

An epic battle in showrooms across the country may crown a new king of the compact luxury sedan market. Mercedes-Benz has jumped back into the ring with its all-new 2008 C-Class, pitted against arch-rival BMW’s popular 3 Series. The purse in this luxury face-off will be millions of dollars in car sales.

When it comes to large luxury sedans, Mercedes-Benz beats BMW nearly two to one in sales — Mercedes sold just over 30,000 S-Class sedans in 2006, compared to 17,000 7 Series Sedans sold by BMW, according to CNW Marketing Research. But with smaller luxury vehicles, the long-heralded BMW 3 Series still rules: More than 120,000 3 Series Convertibles, Coupes, Sedans and Wagons were sold in 2006, whereas Mercedes sold just over 50,000 C-Class Sedans and 16,000 CLK-Class Coupes and Convertibles (the CLK-Class competes with the 3 Series, too).

See Mercedes-Benz C-Class specs

These figures illustrate how Mercedes dominates when it comes to top-level luxury — a hallmark of the large-sedan segment — while BMW has basically helped define sporty driving dynamics, a crucial component in the compact car class.

But with its 2008 C-Class, and especially the C350 Sport, Mercedes-Benz has a true contender in the super-heated compact four-door sport/luxury segment.

The new C-Class has a few distinct personalities: The base C300 Sport offers an engaging driving experience at the lowest price point in the line-up; the well-appointed C300 Luxury brings more features and comfort while it dials back the driving excitement; and the edgier C350 Sport adds a more powerful V6 engine for top performance. The C-Class comes standard with rear-wheel-drive. All-wheel-drive is available on the C300 Sport and Luxury. Mercedes would not confirm by publication time whether AWD will eventually be offered on the C350 Sport.

See Mercedes-Benz C-Class pricing

Despite being completely redesigned, the performance-oriented C350 Sport is powered by the same 3.5-liter 24-valve V6 as its forbear. The engine generates an identical 268 horsepower and 258 pound-feet of torque. The C350 Sport comes standard with a smooth and efficient seven-speed automatic transmission that can be shifted manually when desired. A manual transmission is not offered as it was on the previous C350 Sport because so few American buyers have opted for it in the past, Mercedes says.

The C300 models likewise feature the same engine as the C280 they replace, a 3.0-liter 24-valve V6 good for the same 228 hp and 221 pound-feet of torque. The C300 Luxury gets the seven-speed automatic as standard equipment. The C300 Sport is now the only C-Class variant to come with a standard six-speed manual transmission; the automatic is optional.

Although Mercedes discontinued the manual transmission on the C350 Sport, it retained the manual transmission on the C300 Sport, the least expensive C-Class variant, because it fits the pricing structure. "It makes sense to offer it to an entry-level customer, who is more willing to opt for a manual transmission," a spokesperson said.

Compare the Mercedes-Benz C-Class to its competitors

This year marks the 25th anniversary of the original small Mercedes-Benz, the 190. Four generations later, the C-Class has become Mercedes-Benz's North American sales leader. And since the previous generation C-Class went on sale in 2000, Mercedes-Benz has sold more than two million of them around the world, making it the company’s highest volume vehicle ever.

Up until now, the Mercedes C-Class has favored luxury over sport. With the introduction of the new C-Class, particularly the C350 Sport, Mercedes-Benz steps up the driving experience to make its compact sedan a better match for the athletic and engaging BMW 3 Series. But will the C-Class finally come out ahead?