A new V6 engine signals the arrival of the E350 model for 2006. The E-Class line offers diesel- and gas-powered engines and rear- or all-wheel drive. E350s have a 268-hp 3.5-liter V6 and replace E320 models, which had a 221-hp 3.2 V6. The E320 CDI has a 201-hp 6-cyl turbodiesel. E500s have a 302-hp V8. High-performance E55s have a supercharged 469-hp V8. The CDI is a sedan; all others are available as sedans or wagons. Mercedes' 4Matic AWD is standard on E500 wagons and available in place of rear-drive on other models except the CDI and E55. CDI, E55, and 4Matic versions have a 5-speed automatic transmission. All other models have a 7-speed automatic. Both transmissions have a manual shift gate; E55 adds manual-shift steering wheel buttons. Emissions regulations prevent the CDI's sale in California and four northeastern states. ABS and traction/antiskid control are standard. Standard on E55 and E500 models, optional on E350s is an air suspension with driver-adjustable shock absorbers.

Front and rear side airbags, curtain side airbags with rollover sensors, and Mercedes' Tele Aid assistance are standard. Options include steering-linked bi-xenon headlamps and adaptive cruise control. Also available: voice-activated cell phone, navigation system, heated/cooled front seats, and massaging front seats. Mercedes' optional Keyless Go system uses a pocket transmitter for unlocking and engine starting. Rear obstacle detection is available for sedans, so is Mercedes' full-length Panorama glass sunroof with a power tilt/slide panel above the front seats. The E55 has sport suspension, exhaust, and seats.