All-wheel drive, a wagon body style, and a 7-speed automatic transmission are newly available for the E-Class. The sedans were redesigned for 2003 and are joined for '04 by revamped wagons. Both come as E320 models with a 221-hp V6, and as E500s with a 302-hp V8. The E55 AMG sedan has a supercharged 469-hp V8. Mercedes' 4Matic AWD is standard on the E500 wagon and optional on other E-Class models except the E55. E320s, E500 AWDs, and the E55 continue with a 5-speed automatic as their sole transmission. The rear-drive E500 sedan trades that for an industry-first 7-speed automatic designed to improve acceleration and fuel efficiency. Both transmissions have a manual shift gate; the E55 adds manual-shift steering-wheel buttons. All models come with antiskid/traction control and ABS. Standard on V8s and available on E320s is driver-adjustable suspension firmness. E320s come with 16-inch wheels, E500s with 17s, the E55 18s.

Front and rear side airbags, head-protecting curtain side airbags, and Mercedes' TeleAid assistance are standard. Options include voice-activated cell phone and navigation and Mercedes' Distronic cruise control designed to maintain a set following distance. The optional bi-xenon headlamps are now steering linked. Also available are heated/ventilated front seats and Dynamic Drive massaging front seats with bladders that inflate to counter cornering forces. Optional on sedans is rear-obstacle warning and a twin sunroof (conventional sunroof over the front seats and a glass panel over the rears; a solar-cell version runs an interior cooling fan). Mercedes' optional Keyless Go credit-card-sized transmitter unlocks and starts the car. The E55 has exclusive trim and sport suspension, exhaust, and seats. Available for E320s and E500s is an Appearance Package with body cladding and unique wood trim. All models are prewired for newly optional dealer-installed satellite radio. Due during 2004 as an early '05 model is the E320 CDI sedan with a turbocharged 6-cyl diesel engine.