Great car, good design, they have combined the IMA with diesel, but with enough motor power to do more. I would like to see more battery capacity for better regenerative braking, but that is not necessary. The size is right and the mileage is excellent.

A 2012 gas E300 MSRP is $48-%56K. The hybrid will be a wee bit more. At least the 1% will have good gas mileage. Maybe a C class will follow in a couple of years.

Very impressive - lets hope it is not too expensive.

Also,over the years, it would be nice if they could increase the battery capacity to give a little more e-driving.
and/or reduce the price.

@SJC - I do not think you need a larger battery for engine regenerative braking - 0.8kwH should be enough.

A larger battery for further e-driving would be another thing ...

This is better than the Camry hybrid because no trunk space is lost. OEM conversion kits for existing vehicles shouldbe next.

@SJC,
0.8 kWh battery is quite small for the size of the vehicle. 1.6 kWh would be optimal, however, I think that they try to fit this 0.8 kWh Lithium battery into the existing slot of the former lead-acid battery. A bigger battery, or additional battery capacity, can be placed in the place of the spare tire for better hybrid performance and gas saving. Even limited PHEV is possible with this approach, like the Prius PHEV.

Modern cars with tire pressure warning system does not really need a spare tire. A small tire inflator with pressure gauge placed in the trunk, with optional leak sealant for larger leaks, would suffice. Because of modern tire pressure warning system, most of the time, the driver can drive the car to the shop and have it repaired without having to change the tire in the street, which can be very hazardous.

This is essentially the BAS-II evolution I suggested earlier, minus the larger battery.  No surprises, it was obvious given the way tech is going.

Cable runs to the trunk and connectors for removable expanded battery packs are an obvious upgrade path.  Want the cargo space?  Unplug the expanded pack and put it in the garage.  Safety could be handled by contactors at the forward end and in the expansion battery to de-energize the cabling for handling.  Energizing the contactors could be done via a separate low-voltage power and communications circuit.

The form factor of the motor isn't terribly important, nor is its technology (though induction motors avoid the rare-earth magnet issue).  I detailed the notion here.

So, it is possible to make a diesel hybrid after all...

@mahonj
Diesels and downsizing is what makes life so difficult for hybrids in Europe.

Roger,

"furthermore having a second electric motor connected to the transmission and separated from the engine by a clutch. The second motor acts as torque converter, allowing the engine to idle or to run the vehicle at low speeds without mechanical linkage to the vehicle."

I see no mention of a "second electric motor" in this design nor BAS.

Peter,

Yes it apparently is possible. If you look at the earlier posts back to 2008, you will see the previous design evolved into this, which was what some of the respondents commented on.

http://www.greencarcongress.com/2008/09/daimler-will-la.html

@Roger,
I'm pretty sure Mercedes S 400 Hybrid (on which this hybrid system here is based) does NOT have another starter, but uses the ISG for everything (start, torque boost, as generator, for regen braking). Additional starter, as you suggested may be used in recent Hyundai/Kia hybrids (not sure). With just one motor they need to finely control clutch slip when restarting engine, when car is moving on electric power, especially when accelerating - it's tricky.
I think that BMW uses almost identical system in their ActiveHybrid models - supposedly ZF supplies the hybrid system for both makers.

@MG,
How can you be so sure that the MB S400 Hybrid has no starter?

Without a dedicated starter, the engine must be started by the clutch using the car's kinetic energy, meaning a very noticeable jerk will be felt every time the engine is started. This is a no no in a luxurious make like MB.

Or, the single motor can be de-clutched from the transmission, comes to a stop, clutched to the engine via another clutch, starts the engine, and then clutched back to the transmission...This type of delay in power delivery is a no no in a high-end performance model. The customer wants instant power delivery when stepping down on the gas pedal.

Furthermore, with only one motor, you will need two clutches, one between the engine and the motor, and another one between the motor and the transmission.
You save yourself the cost and weight of a smallish 5-kW starter-alternator but in return you need a second clutch, between the motor and the transmission that will probably cost not a whole lot less nor weighing any less than a 5-kW starter, while losing a lot of advantages like engine-starting smoothness and rapid power delivery. The 5-kW starter-alternator can also give the engine more torque boost if needed, beside the 20-kW main motor.

The starter-alternator can be mounted right onto the crankshaft and serving also as a flywheel, thus incurring no weight nor space penalty, and causing no friction nor reliability issue like in a BAS design.

In a hot summer day in slow traffic, the A/C will consume a lot of power, needing the engine to stay on to deliver that power to the A/C compressor, meaning that you will need a dedicated engine-mounted alternator to supply that extra electrical power while the car inches along in congested traffic. Otherwise, the battery will get depleted quickly, got over-heated, and can't get re-charged if the car only inches along at 5mph...how can you run the engine fast enough at 5 mph while supplying enough electricity to the A/C compressor motor? if you only have one single motor/generator churning at 5mph car speed even in lowest gear?