Spend an extended period in the company of Mercedes-Benz top brass and it's easy to believe that power has gone to their heads. It's almost as if they've twigged that they can instigate a power race that only they can win, leaving the rest of the market struggling in their wake. At the top end of the model range, that's probably fair comment, but the overall effect has cascaded down amongst the sort of cars you or I might buy - cars like the Mercedes E350.

In a previous incarnation, this vehicle was 224bhp worth of Mercedes E320. Although this was ample power for most, Mercedes developed a far more powerful 3.5-litre engine that found its way into bright young things like the SLK350 and it was only a matter of time before they spread it a little further across the range. With 272bhp on tap, this is a serious piece of metalwork.

Mercedes took extensive measures to improve the quality of this E-Class, introducing more advanced technology across a number of its systems but it's not immediately apparent that the current model is such a heavily revised vehicle. True Merc anoraks may spot the front bumper, v-shaped grille and revised headlights but that's about it externally. Inside, it's more of the same with a revised steering wheel and climate control panel being about the size of it.

Under the skin, it's a different story. Handling and steering have been improved and the adaptive braking system has been borrowed from the S-Class. This hydraulic dual-circuit braking set-up provides better safety and comfort features. Safety is a standout E-Class feature and the latest models feature the PRE-SAFE system which primes the seatbelt and airbag if it thinks the car is about to be involved in a collision. The NECK-PRO head restraints move forward within milliseconds of a rear shunt, protecting the driver and front passenger from whiplash injuries. Flashing brake lights are also featured, illuminating during particularly heavy braking.

"This 272bhp 3.5-litre engine is a serious piece of metalwork"

The E350's aluminium 3.5-litre V6 engine supplies a sporty soundtrack to the E-Class. Whereas the old E320's powerplant was rather lazy in its power delivery, this engine is markedly different in nature, with a more infectious feel and sharper responses. The engine's four-valves per cylinder are permanently optimised, thanks to the continually adjusting intake and outlet camshafts - a world first feature for a V6. An enhanced two-stage variable inlet manifold, which automatically adjusts the length of the inlet tract for improved output and emissions control, operates without the driver noticing any changes.

Drop into the driver's seat and you'll be greeted by buttons, hundreds of the things, slathered all over the centre console, on the front of the steering wheel, on the fronts of the seats, by the doors, up on the head lining. Inveterate fiddlers will have found their nirvana. Almost everything seems to be adjustable, heated, ventilated, tweakable and tuneable. The test car we drove was fitted with seats that could not only roast your backside but also waft it with cool air and massage your lower back to keep your spine supple. The side wings of the seat could even be inflated to generate a sort of Teutonic death grip.

You may need them too. Rumble up behind a dawdler, spot a clear section of road ahead and plant the throttle and an extraordinary transformation occurs. Instantaneously. The clever gearbox can drop a couple of gears and the E350's power will despatch unwary Sunday drivers with real alacrity. As with any E-Class, the faster you go, the happier the car feels. It's almost as if it's shrinking around you until it feels no larger than a Focus-sized hatch. This is a trick only the best cars can pull off and is a result of a superb chassis.

The performance figures speak for themselves. With an electronically limited top speed of 155mph, the E350 will be fast enough for all but the most committed autobahn stormer. 60mph from rest will detain you for just 6.7 seconds whilst the overall fuel consumption figure of 29.1mpg is, in the light of these figures, pretty remarkable. Even around town you should see over 20mpg while on a gentler run over 40mpg is achievable. The estate version isn't quite so economical but it's still a very creditable performance. Emissions are reasonable at 231g/km for the saloon and 236 for the estate.

The estate's sleek styling means that total 'seats-flat' luggage capacity has actually fallen by 65 litres over that of the old E-Class, a shortfall that Mercedes have disguised by adding an extra 90-litre underfloor storage compartment and upping the total carrying capacity with all seats in place to 650 litres. The payload is a useful 575kg. Your dealer will want you to pay extra for the optional 'EASY-PACK' retractable load compartment floor - an idea 'borrowed' from BMW's 5 Series Touring. Here, the base of the estate compartment can be moved 400mm towards you at the push of a button, allowing easier reach of items at the back of the boot or creating an optional picnic bench from which you can watch the kids play football. Should you be carrying heavy loads, you should appreciate the benefits of the hydro pneumatic self-levelling suspension, a system based on fully supporting air reservoirs that keep the vehicle at the same level, regardless of load.

Mercedes have tried for some time to replicate the class domination they've enjoyed with their S-Class in other model ranges. The E-Class has long been the unsung star of the range and the E350 is possibly the most impressive model in the whole line up. If you don't get on with the looks of the latest BMW 5-Series or Audi A6, count yourself very fortunate indeed.