The money class: Luxury sedans the Infiniti M35 is tops. And the new 'Clean Diesel' Mercedes E320 has that sweet smell of success.(luxury sedans)(Product/service evaluation)

The Infiniti M35 retains its spot as the class leader in our tests of mid-luxury sedans. But the other big news is that two versions of the freshened Mercedes-Benz E-Class are close in its rear-view mirror, with the new diesel-powered E320 BlueTec edging out its gasoline-powered twin, the E350.

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We tested the rear-wheel-drive base M35 as an update to the all-wheel-drive M35X that we had previously tested and that was our 2007 Top Pick for luxury cars. Not only did this version score nearly the same as the M35X, but it's one of the least expensive cars in the category. (See CloseUp on the facing page.)

The Mercedes-Benz E320, which outscored the E350 by a point, is the first of a new wave of "clean diesel" cars that we've tested. It achieved an impressive 29 mpg in overall fuel economy. (See "Hybrid vs. Diesel" on page 69 for a comparison of the E320 and Lexus GS 450h Hybrid.)

For this mid-luxury group, we also tested the freshened BMW 535i, now powered by a new twin-turbocharged engine; the redesigned Volvo S80; and the Lexus GS 450h. Prices for this group range from $45,305 for the Volvo to $60,172 for the Lexus. We tested two-wheel-drive versions; each model is available with all-wheel drive.

We also performed a two-car face-off of ultra-luxury sedans.The new Lexus LS 460L, $76,572, achieved the highest score of any vehicle we've recently tested, top-ping the $90,200 Mercedes-Benz S550. (See page 70.)

Of the eight models included in this issue, four are recommended: the BMW 535i, Infiniti M35, Lexus GS 450h, and Lexus LS 460L. The Mercedes-Benz E-Class and S-Class have subpar reliability records, and the Volvo S80 is too new for us to have sufficient reliability data.