Merc's $4 billion four-door

The E-Class is the traditional mainstay of the Mercedes-Benz line-up, representing 25 per cent of total sales worldwide.

This is why the luxury carmaker has put so much effort into the new model, which goes on sale in New Zealand later this year.

The all-new E-Class replaces one of the most successful Mercedes-Benz models ever, one which has sold about 1.5 million units over seven years.

Its average annual sales of about 200,000 cars worldwide since 1995 makes it the most successful luxury class saloon in the world, says the company.

But reaction to the car in the mid-90s was at first subdued. Unlike previous models, which had money thrown at them in a policy of over-engineering, the present E-Class had been built to strict cost controls.

The bugeting showed. The doors didn't close with their customary bank-vault clunkiness and the overall build quality of the car seemed to have slipped.

But the carmaker says the new car - developed over four years at a cost of more than $4 million - is not only a giant leap in comparison, it sets new standards for safety, comfort and handling dynamics.

Technical innovations include:

Electro-hydraulic brakes borrowed from the top-line SL roadster.

Air suspension

Intelligent protection systems for occupant safety

Fuel consumption reduced by up to 0.9 litres per 100 kilometres

A world first multi-contour seat, which adapts to driving forces.

The design of the new E-Class borrows styling cues from the C- and S-Class but continues aspects of the 1995 model that were seen to be controversial.

The twin headlamps, with which the E-Class started a design trend, have been redesigned and slightly angled back for a sportier look.

Mercedes-Benz says the the same message is conveyed by the side view: typical E-Class, but with a lively new image.

Compared with the previous model the body structure of the new E-Class is stronger and has even larger deformation zones at the front end.

The company says the zones ensure an even better energy absorption during an accident, allowing the passenger cell to remain substantially undamaged even during a severe impact.

The proportion of high-strength alloys, which provide maximum safety with minimum weight, has been virtually doubled in the new saloon.

The bonnet, front wings, boot lid and front-end/rear-end modules are made of aluminium, a first for the company.

Five different engines will initially be available for the new model: three six- and eight-cylinder petrol engines with an output range from 130kW to 225kW, and two CDI engines with four or five cylinders and an output of 110kW to 130kW. The maximum torque of the diesel engines has been increased by up to 8 per cent, reaching a new peak of 425Nm in the E270 CDI.

The direct-injection diesel units are second-generation CDI engines which feature a number of improvements like twin balancer shafts to reduce noise and vibration.

Ride and handling has been improved, says the carmaker, by a new four-link front suspension and a multi-link independent rear, mostly made of aluminium.

The air-suspension system uses electronics to control both springing and damping.

Sensors monitor the road conditions, driving style and car load and select the best possible shock absorber and spring settings.

This air suspension is standard equipment in the top-line E500 V8 and optional in the other models.