Mercedes-Benz claims to be the world’s oldest automaker, starting with the Patent Motorwagen of 1886. And it was a pioneer as well in exploring the potential for smaller, less expensive entry-luxury cars, having introduced Americans in 1983 to the four-cylinder 190 Baby Benz.The 190 was underpowered, undersized and certainly understyled, and the ones still on the road look more like used-up Toyota Corollas than Mercedes-Benzes. Even with the succeeding C-Class models introduced in 1993 and 2000, it seemed as if Mercedes was determined that no one would confuse the tot with the adults, such as the definitive E-Class or its uber-brother, the S-Class.

The great unwashed could buy a C-Class, but they had to use a Mercedes Jr. charm on their key chain.

Times have changed. Perhaps the most striking element of the latest C-Class, all new for 2008, is that it doesn’t look like a C at all; at first glance you might think you’re gazing at an E-Class that was run through the dryer, shrinking slightly in all dimensions. My wife has a 2006 E350 in the same pewter color as one of the C-Class test cars I recently drove, and when the E and C were parked nose-to-tail in our driveway, it took more than a glance to tell them apart.

The C is an important model for Mercedes, being both its volume leader and an entry point for first-time customers.

The new model is offered in three distinct versions: the C300 Luxury, the C300 Sport and the C350 Sport. All have four-cam, aluminum-alloy V-6 engines with four valves for each cylinder. The 3-liter engines in the 300 models produce 228 horsepower and 221 pound-feet of torque, and the 3.5-liter unit in the 350 makes 268 horsepower and 258 pound-feet. The C300 Luxury and C350 Sport come with a seven-speed automatic; a six-speed manual is standard on the C300 Sport.

Both Sport versions sit a half-inch lower because of their sport-tuned suspensions. They also have body modifications from the company’s AMG performance division and dual exhausts.

Fuel-economy ratings for all three versions are almost identical: 18 mpg in town and 25 on the highway for the C300 Luxury, 18/26 for the C300 Sport and 17/25 for the C350.

The new C-Class is bigger in every dimension than the car it replaces: 3.9 inches longer, 1.7 inches wider and 1.4 inches higher. There is a bit more shoulder room in the front and rear and a slight bump in trunk size.

The styling is assertive, with a downward-slanted nose and upswept trim lines along the sides. Striking 17-inch five-spoke wheels are standard; 18-inch rims are an option on Sport models.

The three-pointed star is now set into the front grille on Sport models — the first time a Mercedes sedan has received this treatment.

The Luxury model has a hood ornament bearing the tristar emblem, like other Mercedes sedans. The C300 Sport starts at $32,750, the C300 Luxury at $34,450 and the 350 Sport at $38,050. The C300 also comes with 4Matic all-wheel-drive starting at $35,990 (Sport) and $36,250 (Luxury).

As attractive as these base prices may seem, by the time various option packages are added (like a $2,950 entertainment package, including navigation or the $2,750 Premium II package of luxury appointments), a $40,000 C-Class is easily achieved.

I tested rear-wheel-drive versions of all three models on a daylong 300-mile excursion through central Oregon. Each car had a distinct personality. The C300 Luxury, while roomy and comfortable, didn’t like to be pushed hard; its front end did not respond as quickly as I would have liked in high-speed turns, and with both 300s there was a slight delay when the gas pedal was depressed — a familiar Mercedes characteristic.

Both Sports felt crisper, with less body roll, and the throttle response of the C350 was nearly instantaneous. The combination of a slick six-speed manual and a stiffer suspension made the C300 Sport by far the most rewarding version for spirited driving.

Not that the BMW 3 Series should be quaking in its run-flat booties, but the C350 is definitely honking at its door. Whereas the BMW is a car with a sporty edge, offering its luxury accouterments begrudgingly, the C350 makes a luxury statement first and adds performance as a bonus.

Car and Driver recorded a 0-60 time of 6.0 seconds for the C350, compared with 5.6 seconds for the BMW 330i six-speed. The Sport makes its intentions clear with a silver instrument cluster, brushed aluminum trim and a three-spoke steering wheel.

As much as I prefer driving a manual transmission to any type of automatic, it is clear that manual gearboxes will soon be viewed as fossils. In most forms of driving, especially daily commutes in stop-and-go traffic, an electronic automatic is vastly superior to a three-pedal setup. The seven-speed automatic in the C-Class (standard in the Luxury and 350, a $1,440 option on the 300 Sport) shifts crisply and unobtrusively.

Still, given how good the transmission is, the lack of paddle shifters behind the steering wheel is a glaring omission. Yes, you can shift by tapping the console-mounted lever, but given the performance pretensions of the Sport models, the lack of paddles is inexcusable.

Past Mercedes of any class have not been noted for being technological-friendly, so the new C-Class is a big step forward. In comparison with BMW’s near-pathological adherence to its confounding iDrive control system, Mercedes is trying to straddle the fine line between having efficient electronic interfaces and being easy to use.

Clever touches abound. With the multimedia-navigation package, a button conjures a 7-inch liquid-crystal screen out of the dash. The controls are fairly intuitive, in contrast to most German cars.

Further, the navigation system has a built-in hard drive with the capability to download songs from an iPod or MP3 player and to burn CDs from them. There is a slot for a memory card, a glove-box-mounted iPod connector and a spare power outlet. (The glove box is climate-controlled in case you want to chill your hot tracks.)

Oddly, when the $375 iPod/MP3 interface is installed, the portable device can be controlled only by buttons on the steering wheel.

The trunk is spacious; a split folding rear seat is optional. Six air bags are standard, as are anti-lock brakes and stability control.

Of the three models, the C300 Sport with manual gearbox will be the choice for most first-time Benz owners who haven’t completely matured out of their BMW boy-racer phase. It is the least expensive, yet has enough look and feel of the upmarket E- and S-Class to let your friends know you’ve arrived, at least to the entry point of the star-emblazoned automotive world.

2008 Mercedes-Benz C-Class

BASE PRICE $32,750 for C300 Sport, $34,450 for C300 Luxury and $38,050 for 350 Sport (prices include $775 destination charge)

TYPE Front-engine, rear-wheel-drive, five-passenger, compact sedan

ENGINE 3-liter, double-overhead-cam, 90-degree V-6

MILEAGE 18 mpg (city), 25 mpg (highway)

TOP SPEED 130 mph

LENGTH 182.3 inches

WHEELBASE 108.7 inches

CURB WEIGHT 3,560 pounds

BUILT IN Germany

OPTIONS Multimedia package (includes navigation system, six-CD/DVD player in the dashboard, Harman Kardon Logic 7 Surround Sound, 4-gigabyte hard drive) $2,950; leather seat trim $1,500; seven-speed, automatic transmission $1,440

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