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New images of Mercedes's new small SUV, likely a direct threat to BMW's X3, surfaced on the UK's Autocar. The mini M-class model was spotted on the N rburgring, as it was receiving a sound flogging ahead of a planned 2008 launch. Autocar reports the new ute, expected to inaugurate the "X-Class" moniker, will be priced above the C-Class wagon, but below the E-Class wagon โ€” which is where the M-Class currently resides. We'd Figure it in the $33,000 to $40,000 range, give or take a DVD/nav system or two.

Mercedes readies an answer to the X3 [Autocar]

New Mercedes-Benz C Class Could Hit in 2007 [internal]