International Report

First Drive: Mercedes-Benz E-Class WagonMercedes-Benz' new E-Class wagon is already on sale in Europe, but it won't make its U.S. debut until the fall of 1997, as a '98 model (about the same time Mercedes debuts its other family hauler, the M-Class "All-Activity Vehicle"). Based on our recent test drive in Germany, however, the wagon should prove well worth the wait for those who need a bit more passenger and cargo capacity than is available in its sedan counterpart. M-B wants to debut the wagon here concurrent with the introduction of its upcoming new-generation 3.2-liter V-6 and 4.3-liter DOHC V-8 engines, which will be fitted to the E-Class sedans in late 1997.

While a powertrain decision for the wagon has not yet been made, factors weighing in favor of the V-6 are its more affordable price and accommodations for Mercedes' all-wheel-drive system, which is expected for '98 E-Class models but isn't compatible with the V-8. The new series engines will have about the same peak output as the current 3.2-liter/217-horsepower inline-six and 4.2-liter/275-horsepower V-8, but will be lighter, more fuel efficient, and have a broader torque curve.

The new wagon offers more cargo room than its predecessor, a reinforced rear body structure, and three rows of seats to accommodate up to seven passengers. In addition, the versatile split-back second-row seat can be folded flat, or its lower cushions can be removed entirely; doing this on the right side and folding the front passenger seat down results in a nearly-flat load surface almost 10 feet long.

As with the E-Class sedan, the wagon's list of standards includes traction control, side airbags, ABS, dual-zone automatic climate control, three-position memory system, and burled-walnut trim. From behind the wheel, the wagon provides the same solid feel, strong power delivery, and excellent driving characteristics that earned the sedan Motor Trend's 1996 Import Car of the Year award.

A V-6 wagon is expected to be priced around $47,000, while a V-8 model would likely run in the low- to mid-$50,000 range. The company expects to sell about 3000 wagons per year, mostly to current Mercedes wagon owners. -- Rik Paul

First Test: Hyundai Elantra GLSThe slogan "Yes, Hyundai" has taken on new meaning for us since driving the all-new Elantra. Throw all Excel-derived prejudices and other misconceptions out the window; this soft-lined sedan has made a Darwin-defying evolutionary leap forward from its eminently forgettable predecessor, becoming a tightly constructed, ergonomically designed compact at an affordable price.

Hyundai engineers must have sacrificed vacations to spend every waking hour dissecting the competition and scrutinizing their best qualities. The contemporary yet perhaps benign exterior styling promises to age gracefully. Slip in behind the wheel, and you survey a smoothly sculpted dash that's as visually appealing as it is functional. Rich textures and fluid switch movements add a quality feel. The molded bucket seats are comfortable, though we found the seating position to be a tad high for some drivers in relation to the stereo, climate controls, and windshield frame.

Lined up against its core market competitors-the Dodge Neon, Honda Civic, and Saturn SL-the Hyundai leads in several key categories of interior space, notably front legroom, overall passenger volume, and total interior volume. Other key measurements are roughly on a par with those of the competition. As an added bonus, the rear seat can accommodate two average-size adults in comfort-not something to be taken for granted in this category.