Mercedes created quite a stir in 1997, when it introduced a sport utility vehicle with a luxury nameplate: the M-Class. Unlike its reputation for world-class German-built sedans, the M-Class was built in Alabama and soon known for poor build quality and reliability woes. In fact, J.D. Powers surveys placed the M-Class right on the bottom of the quality list.

That first M-Class had body-on-frame construction, much like other truck-based SUVs at the time, with a starting price in the low $30s. Since that time, other luxury-brand automakers like BMW, Lexus, Cadillac, Lincoln, Volvo, Volkswagen, Infiniti, Acura – even Porsche – have joined in as credible rivals, offering consumers a wide choice in the luxury field. The M-Class remained virtually unchanged in appearance for eight years and watched sales declined amidst better-handling and better-looking luxury SUVs.

For 2006, the M-Class has been redone from the ground up. The big change is that it is now built off of a car-like platform versus the full truck-frame style design. The new unibody construction gives it a more car-like feel with new front and rear suspension setups. Since few buyers of the M-Class never went off-road, the change to unibody allowed engineers makes the 2006 model lighter, despite an increase in size by 5.9 inches in length, 2.8 inches in width and in the wheelbase by almost 4 inches to 114 inches. Despite the boost in size, the third-row seat is gone and no longer available, increasing front and rear legroom by 2 inches each.

For three rows of Mercedes comfort, the new R-Class with a 126-inch wheelbase is a step up from the M-Class. Built at the same Alabama plant, the M-Class comes in two models: the ML350 (with a starting price of $40,470) and the ML500 ($49,220). Both models are full-time all-wheel-drive and include a $720 destination charge.

We tested the ML350, which comes with a new 3.5-liter V-6 of 268 horsepower. The 5.0-liter V-8 is a carryover that generates 302 horsepower. We expect the addition of an AMG performance model, most likely with the 6.3-liter V-8 Mercedes, is developing. Our V-6 tester seemed to have plenty of power and easily came up to speeds for highway or when passing another vehicle.

Both models come with the identical and new seven-speed automatic transmission that we seriously disliked. The shifts were hard, abrupt and with a slight delay. Mercedes replaced the common shifter and introduced an electronic column-mounted shifter similar to that being used by BMW. The short stalk felt awkward and took some getting used to. Be sure to keep your foot on the brake until you know for certain which gear the vehicle is in, which isn’t as easy as one might think.

Unlike its predecessor, the M-Class now looks more like an SUV than a loaf-shaped mini-van. The new model looks like it spent time at the fitness center with a more chiseled, aggressive appearance similar to the sporty SLK roadster.

The headlamps are multi-element projector type and tail lamps larger. The bolder grille is black on the ML350, silver on the ML500; both consist of three side louvers with air vents that display the familiar three-pointed Mercedes-Benz star prominently in the middle.

Inside the M-Class, everything is new and passengers are treated to a luxurious, well-appointed cabin. Four huge, round air vents compliment the dash. There’s even a new multi-function steering wheel with wood on the top half, leather below. Seats are comfortable, well-positioned and should accommodate anyone comfortably. Eight-way power seats and tilt-telescoping steering wheel are standard. Front visibility is excellent; however, rear visibility is hampered by the larger D pillars.

The rear seat is split 60/40 that flip and fold forward for added cargo space. Cargo volume is 42 cubic feet with the seats up and 75 with the seat folded.

Despite a firm suspension, the new M-Class rides better than most cars you can buy and does a good job of absorbing bumps and jars. Expect some moderate body roll on corners and sharp curves. Mercedes offers an optional ($1,575) air suspension package that allows the driver to select one of three suspension levels of firmness.

As expected in a luxury vehicle, the list of standard equipment is long with enough features to satisfy most buyers. This is, however, a Mercedes-Benz where extra cost (and pricey) options are there for the privileged. Our tester came with the optional trim, entertainment and sunroof packages that totaled almost $5,000. Heated front seats added another $690; DVD navigation, $1,240; Sirius satellite radio, $500; trailer hitch, $490; and another $690 for the Iridium silver paint finish.

Safety features include electronic stability control, traction control, anti-lock brakes, side-curtain airbags with rollover sensors, a rear obstacle detection and warning system and swivel headlamps. Neither the federal government nor the private Insurance Institute for Highway Safety have conducted crash test ratings as of yet.

While it is too soon to know if Mercedes has corrected its quality and reliability problems of the previous generation M-Class, we can confidently say that the new model is a huge overall improvement and certainly well worth considering. At a minimum, Mercedes has caught up and, in most cases, surpassed its luxury SUV competition.

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