The rear-wheel-drive E250 BlueTEC is rated at an impressive 28 mpg in the city and 45 mpg on the highway, while the 4MATIC all-wheel-drive variant returns 27/42 mpg.
That means the E250 BlueTEC is significantly more efficient than its predecessor, the E350 BlueTEC, despite packing only slightly less underhood muscle. The E250 BlueTEC utilizes a 2.1-liter turbodiesel four-cylinder with 195 horsepower and 369 lb-ft of torque, while the E350, which was good for 22/33 mpg, featured a 3.0-liter turbodiesel V6 with 210 ponies and 400 lb-ft of twist.
Mercedes' latest oil-burner is also within striking distance of the 32/45 mpg rating earned by the smaller, less powerful BMW 328d, with its 180 horsepower, 280 lb-ft 2.0-liter turbodiesel four.
The E250 BlueTEC will be positioned as the base model of the E-Class range, carrying a starting price of $52,325 - $500 less than the gas-powered E350. The E250 BlueTEC 4MATIC ccommands an MSRP of $54,825.