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The familiar sedan you see here is the most fuel-efficient BMW sold in the United States since the 13-hp Isetta of the late 1950s. And before you look at the specs, where you might expect to see some yawn-inducing straight-line performance numbers, we should point out that the 335d will whup the first- and second-generation M3s in a stoplight drag race. In fact, the 335d nearly keeps up with the muscle-car 335i, a twin-turbo bully of a 3-series that gives the current M3-V-8 and all-a run for its money.

I first drove the newest Mercedes-Benz C-class in Europe in the summer of 2007. I was impressed. The steering was a big step up from the old car's yet the baby Benz still felt like a proper Benz. My impressions of the car in the USA later in 2007 weren't as good. I found the ride quality a bit harsh on U.S. roads, the interior plastics not up to spec, and the steering not as linear as the model I tested in Europe. This latest C-class test car reminded me that the small Mercedes is indeed a very nice car. Sure, I prefer the way the newest BMW 3-series drives when pushed, but this latest C-class runs the BMW much closer than ever before. I'd still like to see nicer dash materials, and the seven-speed automatic transmission is sluggish, but if you want a Mercedes but don't want to spend big money, the C-class delivers.