Mercedes intros a new four-cylinder diesel with the launch of the 2014 E250 BlueTec.

When it comes time to bring out an all-new version of the mid-range E-Class, the Mercedes-Benz product team doesn’t have much room for error, not when you consider the various sedans, coupes and wagons that make up the line account for a whopping 25% of the German maker’s U.S. volume.

The 2014 Mercedes E-Class is a deserving update, as we’ve previously reported, adding some welcome sporting touches to a nameplate traditional known as the more cushy of the midsize European luxury imports. With the addition of the E250, Mercedes goes a step further, proving that you can also deliver spirited performance out of a sedan that also manages to be surprisingly fuel-efficient, thanks to its new 2.1-liter inline-four BlueTec diesel.

Better yet, with the addition of 4Matic all-wheel-drive, the new “oil burner” provides the sort of traction that not only grips the pavement firmly in snowy climes while also adding a bit more performance edge for those Sunbelt buyers likely to never see conditions worse than the occasional cloudburst.

Fire up the new diesel and what you notice – make that what you don’t notice – is the lack of the traditional clatter that has long haunted diesels, even at start-up or  when idling. On the open road you’d be hard-pressed to believe this is, in fact, a diesel.

The E250 is just the latest addition to the growing E-Class family of sedans, coupes, wagons, cabrios and performance models.

Americans are only slowly beginning to appreciate diesels again, after having been justifiably soured by some of the awful offerings of the ’70s and ’80s. Part of the challenge for manufacturers is getting past the numbers. At first glance, the 195 horsepower the new Mercedes diesel produces might  appear underpowered by today’s standards where luxury sedans in the E-Class range routinely make 300 hp or more. But horsepower only tells part of the story.

What you get from a diesel is grunt. Stomp the throttle at a light and the BlueTec’s twin turbochargers kick in imperceptibly fast, quickly bringing the oil-burner up to its full 369 pound-feet of tire-spinning torque. That gives the E-250 a delightfully fast launch, as well as plenty of zip for passing or moving away from a cluster of vehicles on the freeway.

To ensure responsive power over a broad speed range, the new engine is equipped with a two-stage boost system that’s comprised of a small high-pressure turbocharger and a large low-pressure turbocharger. In order to meet the emission regulations in all 50 states, the BlueTEC system uses AdBlue – or urea – injection to make the diesel as clean as a state-of-the-art gasoline engine. The engine is also matched up with a seven-speed transmission and Mercedes’ 4Matic, all-wheel drive system is standard fare on the E250 package.

A closer look at the 2.1-liter turbodiesel.

The final EPA-certified fuel-economy number for the E-250 haven’t been released yet  but are expected to come in at 24 miles per gallon in city, 33 miles per gallon on the highway and 28 miles mpg combined, which certainly isn’t bad for a luxury sedan designed to deliver a comfortable ride.

The good news is that Mercedes has put a little more testosterone in all versions of the 2014 E-Class remake, including the E550 gas model, the E400 Hybrid and, of course, the bolder AMG edition.

No, buyers won’t lament the smooth, quiet ride that has traditionally been Mercedes’ focal point. But the Teutonic maker is tired of seeing all the performance buyers migrate to BMW and Audi showrooms.

The good news is that even traditionalists are likely to appreciate the more well-planted ride and handling, the more agile and connected steering and the bigger brakes that Mercedes has delivered.

And the maker is also betting that the majority of E-Class customers will opt for the new “Sport” face of the 2014 model. Unlike the traditional, or “Classic,” it replaces the tri-star hood ornament with an oversized logo mounted on the new, larger grille. That’s framed by completely restyled headlights that incorporate all functions within a single lens. The changes to the front underscore the performance feel of the 2014 E-Class and finish it with a more contemporary appearance.

The "Sport" face is expected to dominate orders for the 2014 Mercedes-Benz E-Class.

Mercedes-Benz also has equipped the E-250 with the company’s “Intelligent Drive,” system, including accident-prevention technology designed to help prevent collisions with crossing vehicles or pedestrians. In an unusual step, many of these features actually are debuting on the 2014 E-Class months before they show up on the remake of the Mercedes flagship, the S-Class.

One of the more intriguing of these technologies is Active Lane Keeping Assist, which pairs with the latest version of the onerous sounding Distronic Plus. On the freeway, for example, you might be tempted to take your hands off the wheel and feet off the pedals – don’t, Mercedes officials quickly caution, but they combine to move the E-250 a couple steps closer autonomous driving. The system can, for example, keep the sedan placed firmly in the middle of its lane and traveling at the pace of traffic. In fact, it not only is watching the moves of the car in front but the next vehicle beyond that.

I experimented a bit and let the car drive itself, which it managed to do quite successfully through some heavy-duty traffic. If the traffic opened up and started moving, the car automatically kept pace. When the traffic piled up the automatic system took over, applying the brakes and slowing the car to an appropriate speed – even to a complete stop, then starting up again when the way forward was clear.

The new E250 makes up in torque for what it's missing in horsepower.

Basically, the E-Class drove on the equivalent of autopilot for about three miles on an urban freeway up until the point where I had to exit towards my destination.

Certainly, the system is bit unnerving since it takes a measure of faith in the technology to put it into operation. But its benefits are quite apparent. Long stretches of stop and go driving are quite taxing on any driver and the autopilot can relieve some of the stress  and tension that are part of long commutes. I also suspect, though I have no data to back it up, that it reduces the wear and tear on the vehicle. Certainly, it is could help avoid every-day fender benders and pedestrian collisions.

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The encounter with Mercedes-Benz’s Intelligent Drive system was an eye opener as it provided a look at some of the benefits that could come from more sophisticated driver assistance systems.

(Daimler and Nissan will jointly build luxury vehicles in Mexico. For more, Click Here.)

Certainly, it helped that the E-250, which sells at retail for $54,000, also features a quiet, nicely appointed cabin specifically designed to pamper the driver. That’s something we couldn’t imagine Mercedes ever abandoning. If there’s a gripe, even the latest Mercedes COMAND infotainment system still seems a bit awkward to use and not quite on par with some of the competition.

That said, there’s little one can find to complain about with the 2014 Mercedes-Benz C250. Add the benefits of all-wheel-drive and the fuel-efficiency of the new BlueTec diesel and we can only expect the 2014 E-Class line-up to increase its appeal.

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