Kelley Blue Book ® - 2004 Mercedes-Benz E-Class Overview

After a complete remake in 2003, the E Class returns to the market in 2004 with a host of model and engine changes. Rejoining the sedan this year is the wagon variant, available on both the E320 and E500 models. 4MATIC all-wheel-drive is back on the option list as well, a fact that should make many snowbound Benz owners very happy.

Perhaps the most important new offering for the sedan line is the return of diesel power. Introduced at this year Detroit Auto Show, the E320 CDI will make its debut in the spring. The CDI engine (Common-rail Direct Injection) employs the latest clean diesel technology and when the new regulation governing low-sulfur diesel fuel take effect in 2006, Mercedes is fairly certain that the E320 CDI will meet all 50 states' emissions standard.

For our road test, we chose the most powerful of the E Class line, the E500. Now we know that later this year, the AMG E55 will be available, but we view this version of the E Class the same way we do BMW's M cars or Jaguar R series.

Your first look at the E500 tells you this is no run-of-the-mill car. Strikingly elegant, the E500's gorgeous profile gives it an almost coupe-like appearance that is further enhanced by the large alloy wheels and wide tires. The impression that the E500 gives is one of solidity and stability, both of which would be 100% accurate assumptions. You'll find the doors and trunk lid shut with a resounding "thunk" and the body panels fit together so perfectly it seems as if they were carved out after the car's assembly was completed. We also think you'll appreciate some of the more subtle exterior designs features, such as the stand-up three-star hood ornament, the side-mirror's integrated turn signal indicators and the chrome door pulls.

Step inside the E500 and you'll find yourself surrounded by rich leather and handsome wood trim. The instrument cluster features a clever speedometer ring that places the indicator needle at the outer circumference while its center is used to display trip computer and cruise control functions. Controls for the power seats and mirrors are conveniently located on the front edge of the door for ease of operation and all of the switches and controls are backlit in a soothing pale orange glow. You may find that the cruise control stalk is located too close to the turn signal stalk, a design which had us accidentally activating the speed control on more than one occasion. We also think Mercedes could do with a lesson in American drink cup holders 101; the E500 has only one cup holder for the front passengers and its an overly engineered pop up unit that once unfolded can hold little more than a medium latte.

If you've been shopping the high-end automotive market lately, you've probably noticed a trend toward more complex operating systems inside the cockpit. In a world where even the most economical passenger cars now have power windows and leather seats, luxury manufactures have been trying to separate their vehicles from lesser models by heaping on loads of technology that includes integrated navigation systems with video screen controls to operate everything from the audio to the ventilation; it can really become quite confusing for the driver. If you agree with our assessment, we think you'll find that the interior of the E500 is one of this car's strongest assets and may very well be the key selling point for people who have grown tired of driving rolling computer terminals. Mercedes seems to be of the mindset that any feature whose operations diverts the driver's eyes from the road is not a welcome feature to have and we applaud their efforts to simplify this new technology without watering down its appeal.

You can find examples of the E500's user-friendly controls throughout the cabin. The audio system features a small LCD display, a rotary volume knob and intuitive controls for bass, treble, fade, balance and station setting; steering wheel mounted redundant controls allow you to change stations or turn down the volume without removing your hands from the wheel. The same thoughtful engineering has gone into the heating and ventilation controls that feature twin rotary knobs for driver and passenger that change air flow from the floor to the vents to the windshield; the same setup exists for the temperature, fan speed and climate settings.

The rest of the E500's story can be told by its performance on the road which is nothing short of spectacular. The powerful 5.0-liter V8 never fails to impress us with its 302-horsepower might, and the equally impressive automatic ticked off flawless shifts with little fuss; the E500's automatic also feature a clutchless shift feature that allows you to select your own gear changes. You'll find the engine's power is perfectly suited to the car's suspension, which features the ability to change dampening rates for either a sporty firm ride or a soft luxurious one. Though some thought the E500's steering feel is a bit on the heavy side, all of our drivers agreed that the steering was precise and accurate and that the E500 exhibited very little in the way of body roll or lean during hard driving. Even at its firmest setting, the E500's ride remained well within the boundaries of a premium luxury sedan.