By Tim Plouff

Daimler’s kingpin division, Mercedes-Benz, suffered through its first red-ink financial quarter in over a decade earlier this year as the luxury brand struggled with the indignity of its largest product recall ever: more than 1.3 million new Mercedes vehicles. After years of universal admiration and recognition, Mercedes has lost market share to other makers as quality woes, questionable investment strategies and a placid lineup took its toll.

Under the direction of CEO Juergen Schrempp, who has been pushed into early retirement, Mercedes “took-over” the former Chrysler Corp., spent billions of dollars on Mitsubishi as a potential Asian partner (a project that has failed) and created a separate small-car brand called the Smart Car that has not realized the dreams of its originators. Ironically, the man that Schrempp sent to America to run Chrysler, Dieter Zetsche, is returning to Germany to take his place at the head of the corporation.

While the conservative German industrialists pine for Zetsche to return Mercedes to its former glory, he at least starts on reasonably solid footing. This handsome CLS500 is one of several new Mercedes products set to roll out over the next few months, each of which will be a significantly new design or a much improved version of a previous offering.

Joining the CLS in Mercedes showrooms is an all-new M-class sport utility that rides on a uni-body chassis instead of a truck-based ladder frame. A groundbreaking wagon/minivan/SUV vehicle called the R-class also will be built in Alabama alongside the M-class. The new R is a svelte looking sportwagon/ luxury mobile that promises to be everything that the Chrysler Pacifica is not: agile, powerful and roomy.

Mercedes fans will see a new compact C-class sedan and a bolder S-class full-size sedan by next spring.

The sleek CLS mimics the flowing graceful lines of a coupe while embodying the practicality of a four-door sedan. Muscular yet refined in appearance, the CLS features a low greenhouse with short windows and sculptured accents that flow from stem to stern. A hand washing revealed the numerous subtle design shapes and contours that make up such a one-of-a-kind automobile; cues that are only obvious under the close attention that hand-rubbing generates.

Painted a deep black, the CLS is both voluptuous and menacing, all at the same time. Everyone was taken by the car’s stance, frequently mentioning that the CLS “has eyes.” And several drivers even yielded the fast lane on the highway to the fast approaching Merc, a respect that most cars never earn.

The extensive Mercedes lineup has multiple coupes, convertibles and sedans in a dizzying array of alphanumeric badges. The uninitiated might find the model selections frustrating to remember (what are the differences between a CLS, a CLK and an SLK?), but Mercedes is strategically pursuing the new-world marketing plan of many builders: make lots of special interest products and hit every niche in the marketplace.

GM and Toyota are doing it, Lexus is venturing outside the dots and every German automaker will soon have a four-door coupe like the CLS, including venerable sports car maker Porsche.

While Mercedes has employed parts from several models, the CLS is not simply a case of badge engineering. This is a unique model meant to grab luxury buyers that previously could only choose such a car from Jaguar or BMW.

As elegant inside as it is sexy on the outside, the CLS coupe comes with space, comfort and the trappings necessary to reach an audience that has big expectations when they part with this much cash.

The CLS interior offers an adult-sized back seat, not a token perch for temporary passengers. A leather-clad floor console runs through the center of the cabin while real Burl Walnut trims the dash door to door. An electric sunshade glides upward from the rear deck while beverage slots rise from the console to better coddle your drink.

Ten-way power leather seats with three-position memory, heating and cooling action, and multi-adjustable lumbar support, seduce you into long distance travel. The leather and wood steering wheel powers out and down to meet your pre-selected position plus glides away when you exit.

The infrared SmartKey demands only its presence to operate the car. Keyless entry, exit and ignition are all possible with the keyfob nestled in your pocket or purse. You can even program the SmartKey to recognize which driver is approaching the vehicle so it automatically moves your seat, mirrors, and steering wheel into the correct placement before you enter. You also can request SmartKey to activate the seat heaters or cooling fans as you approach.

The wonderful sounding stereo powers 10 speakers and provides a weatherband for mariner interests. Speed sensitive volume, Sirius satellite radio, and a multi-function steering wheel with audio controls complete the layout. Voice commands can direct the cell-phone, navigation system, and Mercedes Tele-Aid system.

For the most part, Mercedes presents all of this electronic wizardry in a user-friendly format, leaving the futuristic and overly complicated I-drive style controllers to arch rival BMW’s I-drive. The CLS not only looks special, but it makes its owner feel that way, too.

At this point, you’re asking if the CLS drives as beautifully as it looks.

That depends on your expectations of a luxury sedan. If you are generally a fan of European car lines, you’ll love the responsiveness of the CLS. Its ride and handling package is nimble without being cruel, but you must recognize that this is a touring sedan, not a Porsche-fighter.

If you are a converted Buick owner with a bigger budget, you’ll be surprised at how taut the CLS chassis feels and how crisp its on-road manners are. In general, the adjustable air suspension does let you tailor your ride dynamics so you can be softer or firmer, depending on your mood. Unless you are at the extreme of either ride spectrum, too firm or too soft, the CLS is a comfortable compromise.

Tickle the Mercedes throttle and the 5.0-liter V-8 makes big power. Not just lots of peak power but lots of power where most of us really use it: right in the middle of the rev range. From 2,700-rpm’s to 4,700-rpm’s, the Merc cranks out an impressive 339-lb./ft. of ground-pounding torque. Overtaking slower traffic is never a challenge. Fail to maintain constant vigilance on the speedo and you’ll quickly find yourself thrumming along at a stupendous rate of speed as the CLS serenely does its work.

The seven-speed automatic is perfectly matched to the engine’s prodigious output, too; shifts are barely perceptible even under full-wide open. This is a sweet ride no matter how you slice it.

This swoopy coupe puts the bright lights back on Mercedes-Benz in a very positive fashion. Stylish trendsetters tend to do that, no matter what the business.