When Mercedes-Benz departed from its usual approach to building expensive luxury cars by debuting the entry-level 190 sedan in the 1980s, it proved to be a good strategy. A decade later, it had sold more than 1.88 million of them.

Firmly established as a mainstream Mercedes, the second generation of the 190 came along in the fall of 1993, and was renamed the C-Class to fit in with Mercedes general letter-class marketing scheme. By 1999, with 1.6 million of the C-Class prowling the world’s roads, it accounted for 35 percent of all Mercedes-Benz passenger car sales.

The entry-level segment represents 70 percent of the total luxury market, making it far and away the most competitive. To maintain and expand its share, Mercedes committed a staggering $1.3 billion in design and development money to retool the 2001 version of the C-Class. It was money well spent.

Although the family resemblance of the new C-Class, which comes in only two versions — the C240 and C320 — is obvious, with a visual design similar to Mercedes’ flagship S-Class, engineers paid more than usual attention to aerodynamics. The A-pillars, windshield wipers and side mirrors are all specifically designed to reduce drag and minimize wind noise in the passenger cabin. And even though it appears to be a larger car, the C is only 0.8 in. longer than the previous version, riding on a wheelbase that has grown only an inch.

I’ve had two recent opportunities to drive the all new C-Class — one on a Mercedes press introduction which took us from Vancouver, B.C. to Whistler, across the mountains and back to Whistler, and then locally for an extended period due to a scheduling fluke.

My driving partner and I took C240 from Vancouver to Whistler. And although our test model was equipped with the 6-speed stick (an excellent 5-speed automatic with the manual Touch Shift is optional) and the 168 horse 2.6-liter, V-6 — which handled very well, we both agreed was slightly under-powered for both the kind of driving we were doing and our particular driving styles.

However, the 215 horse, 3.2 liter V-6 under the hood of the C320, coupled to the automatic which we drove over the mountains and back to the resort, and which I drove again locally, was quite another story. The more I drove this car, the more I liked it.

Over the winding mountain highway, the new C felt very tight, was extremely stable and very quiet. My driving partner was an experienced sports car racer who had the skill to push the car much harder than I did — especially on the tightest of multiple curves. It held the road like a champ.

My time behind the wheel was geared more towards pure acceleration and braking exercises than handling. Again, the C excelled, passing slower cars in the shortest of stretches without breaking a sweat and held the pavement even in the face of severe air blasts from semi-trucks speeding in the opposite direction. We both came away impressed with both the car itself and the improvements in handling over the previous version.

Interiorwise, the C-Class has a number of S-Class features along with some high-tech touches. New instrumentation includes a multifunction display viewed in the speedometer window that provides complete information from the usual odometer and trip computer to the car’s most vital signs right down to washer fluid levels. All the information is accessed by using two rocker switches on the steering wheel. As you would expect, leather seats and soft charcoal plastic trim with wood inserts are also standard.

Underneath the new C-Class is an improved chassis that boasts a new front suspension that replaces the old double-wishbone. It features MacPherson struts and two separate lower links, plus an additional strut for better control of wheel movement. The rear setup is a multilink independent suspension designed for improved response to enthusiastic driving. Four-wheel ABS discs are standard and the C rides on standard 7-spoke aluminum wheels with 205/55R-16 all-season radials.

Whines: My usual comment about all Mercedes and the placement of the cruise control lever. It’s way too easy to hit this instead of the left turn signal.
Kudos: Acceleration is excellent, handling is very confident, feeling like the car is glued to the asphalt. At 100 mph, the C is quiet, refined and extremely responsive. The automatic works flawlessly and smoothly with the 3.2-liter, delivering plenty of torque whenever the driver needs or wants it.
Bottom Line: A real value in an entry level luxury car priced at a reported $31,750 for the C240, and $35,950 for the C320. Mercedes S-Class luxury, and sports car handling at a price that will put many of its competitors on the defensive.