The M-class is reworked with an all-new model. Mercedes creates two new classes for their lineup: The CLS-class and the R-class. The CLS is a curvy sedan based on the E-class platform. The new R-class arrives as a large wagon with three rows of seating. A new 3.5L V6 engine and 7-speed automatic appear across the line. The C-Class drops to a sedan-only lineup. An entry-level SLK280 model is added.

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