Mercedes-Benz to build X3 competitor
 

Mercedes-Benz is expected to build a small SUV called the X-Class. Smaller than the M-Class, the X-Class will compete with the BMW X3 and Land Rover Freelander.

According to AutoWeek magazine, it will be developed on the next-generation C-Class chassis.

Initial speculation is that it will have two rows of seats with a rear bench that will slide back and forth and possibly be removed to expand cargo capacity.

Engines could include a 2.2-liter four-cylinder, and several V-6s from 230 to 270 horsepower, along with a 326-horsepower 4.7-liter V-8 in the U.S. The X-Class is expected to go on sale in Europe in 2007 with rear- and all-wheel drive versions and would likely be available in the U.S. a year later. An official announcement is expected this year.

Source

Interesting... but, by 2008, the X3 will be on its second generation, and surely, much better than the current one. MB is fighting an uphill battle here. Should be interesting, though... we'll see.

Juan