Operating with full electronic fuel injection, the E320 CDI's engine produces 201 horsepower at 4,200 rpm, and a whopping 369 pound-feet of torque through the range of 1800 to 2600 rpm. That's enough to yield 0-60 mph acceleration in an estimated 6.8 seconds, which is slightly quicker than an equivalent gasoline-powered E-Class sedan that uses a 271-horsepower engine with far lower torque output.

Mercedes-Benz has the figures to show that the diesel engine is actually quieter than its gasoline equivalent, and claims that exhaust smoke is no longer visible. The Environmental Protection Agency estimates that an E320 CDI will achieve 27 miles per gallon in the city, and 37 mpg in highway driving. In contrast, the gasoline E-Class is rated at 19-mpg city and 27-mpg highway.

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