2012 Mercedes-Benz S350 BlueTEC 4MATIC

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Using the same BlueTEC 3.5-liter V6 diesel seen in its M-Class and GL-Class SUVs, the S350 BlueTEC will be rated at 210 horsepower and 400 lb-ft. Although EPA fuel economy figures haven't been released, look for around 28-29 mpg on the highway, a vast improvement over the 21 mpg offered by the S550 and even a small boost above the S400 Hybrid.

The S350 BlueTEC will also feature Mercedes-Benz's 4Matic all-wheel-drive as standard.

The S350 will serve as the entry-level model for Mercedes' North American lineup, although the automaker isn't expected to release pricing until much closer to its on-sale date during the first quarter of 2011.

The last diesel-powered Mercedes-Benz in North America, also called the S350, was offered through the 1995 model year. The automaker is intent on expanding its diesel presence worldwide - and we wouldn't be surprised to see other luxury automakers follow suit in the full-size class, namely BMW and Audi.