The current generation C-Class has had an undistinguished and sometimes disappointing performance record. The C-Class has been plagued by quality and electrical problems. It wasn't the subject of the major recall of the E-Class that sent Mercedes-Benz into a loss a year ago, but electronic gremlins have plagued the C-Class.

The current C-Class is the third generation of the "small" Mercedes. I owned a 1988 190E 2.6 and as I look back, this first-generation "small" Mercedes was really well engineered for the time. But it was the last time the engineers built a car and then the car was priced based on what it cost to make. The cost accountants took over when the 190-Class was replaced with the current alphabet designation system used by Mercedes. Now, all Mercedes-Benz automobiles/trucks are engineered to a cost. If something costs more than the prescribed budget, it takes a major management decision to increase the line item budget for that part.

Mercedes is not alone in this "engineered-to-a-price" concept. Almost every manufacturer is in a constant struggle with suppliers to reduce costs for all parts. We see factories being built in low-cost areas where wages, benefits and capital investment are as low as possible. This works for less expensive cars; but when you start playing in the lofty near-luxury and luxury levels, people expect more -- particularly from Mercedes. You pay a premium for the slightly-tarnished three-pointed star to be on the hood or in the grille of your ride.

The exceptions to the engineered-to-a-cost rule are the usual Italian suspects where price is no object - think Ferrari and Lamborghini. Of course, ultra-luxury brands like Rolls-Royce or Bentley have a more flexible structure. For example, if a suspension part costs an extra $1,000 which would increase the price of the car by $5,000, it wouldn't work for a $35,000 car; but when the sticker price of the car is already $300,000, it's not such a big deal.

Porsche originated the concept of paying for everything you need as an option. That's why the base sticker price of any Porsche has to be increased by $20,000 in upgrades so that the car is outfitted to suit the tastes and expectations of the US market. If you don't believe me, just look at a Porsche option list. The prices are insanely inflated. But we still buy the cars. After all, it's a Porsche -- is there a more arrogant company on the planet?

Mercedes doesn't play in Porsche's league, but sometimes features you would expect as standard equipment - power seats, navigation, auto-dimming mirrors, rain sensors, etc. are only offered as part of expensive option packages. In order to bring the C-Class in at a low MSRP, a lot of content is missing. Let's look at the 2006 C-230 "sports sedan":

MSRP is $29,975. The "230" badge has meant for years that you get a 2.3 liter, 4-cylinder engine that usually is combined with a "kompressor" or supercharger to give the engine some umph. That's not the case any longer. In order to match BMW, all Mercedes C-Class sedans have V-6 engines. BMW does it with one 3.0 liter in-line six while Mercedes uses three V-6 units. In the case of the 2006 C230, you get a 2.5 liter V-6 engine with 201 hp. That base price sounds pretty good for a V-6 Mercedes; but you have to pay extra for many things. Here's a short list of options and their cost.

I priced a new C230 with options I'd want and that $30k entry price magically jumps to $40k.

• Automatic 7-speed transmission - $1,390
• Driver's Seat Package [power driver's seat only, steering wheel memory & right hand tilt-down mirror] - $600
• Entertainment Package [6 CD changer, Harmon Kardon speakers & surround sound] - $970
• Sun Roof Package [power glass moon roof, garage door openers, outside left-hand and inside rear view auto day/night mirrors, power rear sun shade, rain sensing wipers] - $1,790
• COMAND System [DVD navigation system] - $2,210
• Satellite Radio [Sirius] - $500
• Restraint System [rear side impact air bags] - $385
• Full Leather Seat Trim - $1,500
• Heated Front Seats - $680
• Split Folding Rear Seats - $290
• Metallic Paint - $680

It's insulting to pay extra for metallic paint, safety air bags and something as simple as folding rear seats. It's also important to note that almost every C-Class comes to the US with both the Sun Roof and Entertainment packages. I think it would almost impossible to find a 2006 C-Class sedan with no options. So you would have to special order a C-Class if you actually want to buy one that actually costs $29,975.

The other sedans available have different engines as well as 4-matic models. Mercedes isn't selling a C-Class wagon this year. [I always liked the wagon design better than the sedan.] The C280 sedan has a 3.0 liter V6 with 228 hp and the top C350 has the 3.5 liter V-6 kicking 268 horses. [You can get a C-55 AMG with the 5.5 liter V-8 - but this is very expensive and pretty rare at the C-Class level.] The 3.5 liter engine is now the standard, entry-level engine for the ML-Class, E-Class and CLK-Class.

A new C-Class should be coming soon. Perhaps we will get a 2008 model sometime in 2007. The C-Class is the volume car for Mercedes-Benz. It's not as profitable as the bread-and-butter E-Class; but it gets volume to move through the showroom and the natural hope is to move the customer from a C-Class up the Mercedes food chain until you are able to afford an S-Class sedan.

That original concept would work if C-Class customers were satisfied with the experience of owning or leasing the C-Class. My friend who leased a C240 for three years couldn't wait to get rid of it. Sometimes the power driver's seat would go all the way forward and then not go back. He's over 6 feet tall and he couldn't even drive it in for service! He is very happy with his 2005 BMW 325iC. It's going to be hard to get him back into a Mercedes at the end of that 3 year lease!

His experiences aren't unique. The electric gremlins have created many problems for Mercedes and much annoyance to thousands of customers. Try driving when the driver's window doesn't go down. It gets worse when you discover the problem is intermittent and the computer diagnostics don't detect the problem when your car is in the shop. There are also issues of interior "creaks" and noises that can't be located or eliminated. And then there is the problem of cheap plastic knobs, fascia, covers and parts that break or fall off. No Mercedes-Benz should suffer from these problems - ever. You won't see the C-Class getting any recommendations - new or used - in Consumer Reports annual auto issue.

Spare yourself the headache and consider alternatives like the new BMW 3-Series or a VW Jetta GLI. And you get lots of car for the money with an Acura TSX, Lexus IS, or an Infiniti G35. In fact, the new Lexus IS offers a stunning array of safety and luxury features standard that put Mercedes to shame. The Volvo S60 isn't a bad package if you like a bit of austerity. If you have to have a Mercedes, please consider waiting for the new generation C-Class.

Mercedes seems to be on the ball these days with new DCX Chairman Dieter Zetsche on the job. The new management team seems keenly aware of the past mistakes and new products like the all new ML, the R-Class and CLS are pretty nice - major improvements. The new S-Class looks and feels much more substantial and of much higher quality than the exiting model. Let's all hope that the electronic systems work and that better materials are used inside and out for the next C-Class. So stop, think, and consider NOT buying or leasing a new C-Class sedan!