The small new Mercedes-Benz GLK350 SUV is just the thing for a lousy economy, with technology necessities such as Bluetooth included standard, and a base price that undercuts the BMW X3 by $5,000. The GLK gives Mercedes-Benz a competitor in the fast-growing compact, or entry-premium, SUV segment. The GLK stands out with its navigation system, wide range of entertainment options, and the ability to omit all-wheel-drive and save $2,000. You can drive off in a reasonably equipped GLK350 for less than $40,000.

Mercedes-Benz GLK350 Slideshow: Click Here

In a test drive in and around Santa Barbara, Calif., the GLK350 with its 268-hp V6 engine and seven-speed automatic transmission was a pleasant vehicle to drive no matter how twisty the back road. Actually, Santa Barbara makes it pleasant to be driving in most any vehicle with a valid inspection sticker. But the GLK is really at home anywhere as a comfortable place for four to travel around town or cross country and be nicely entertained while under way. Mercedes-Benz is also doing its best to undermine the longstanding reputation of German automakers for sticking us with lousy navigation systems by reaching out to Mitsubishi for a very nice navigation system that uses both the Comand controller (their version of iDrive) and voice input. This system debuted in 2007 on the Mercedes-Benz C-Class and was rated third best among 79 vehicles in the 2008 J.D. Power Navigation Usage and Satisfaction Study. The GLK-Class SUV is based on the C-Class chassis and shares common traits ranging from the navigation system to the cramped location of the Comand controller on the center console (and hard for the passenger to access if bottles are in the cupholders) and the placement of the Comand function buttons (radio, navigation, phone) on the center stack rather than next to the controller.

Common tech offerings (Bluetooth comes free)
Bluetooth comes standard. To connect your iPod, you'll need a $375 adapter kit. You'll probably want to step up to the all-encompassing $3,350 Multimedia Package which adds the hard drive-based navigation system, Harman Kardon Logic 7 upgrade audio and a useless six-disc CD changer (useless because that's why there's iPod), 6GB allocated to music storage (also rendering the six-disc changer useless), Gracenote music lookup, and a rear view camera. Every GLK comes with a center-stack LCD display, 5 inches diagonal without navigation, 7 inches with. This makes more sense than having engineers create a separate audio interface if you don't have a navigation system.

If you travel with back seat passengers, you can also get a rear entertainment system with two screens ($1,880). The back seat is adequate for adults; if you go on a long trip, they'll wish they rode in the bigger ML- or GL-class SUVs. But that's what you get in a vehicle 178 inches long, not 190 or 200. You'll appreciate that when you're parallel parking.

A telematics and Mayday calling service, TeleAid, is a standalone option ($650), as is parking sonar ($790). All the safety you want comes standard, including front, side, side air curtain, and knee airbags plus the usual (for this class of car) stability and traction control assists.

Buy Options You Don't Need to Get Options You Want
Who wouldn't want a 115-volt power socket for your laptop or charging your cellphone? Or Sirius satellite radio? But is it worth $3,150 extra? They're bundled into the grab-bag $3,150 Premium 1 Package: panorama sunroof (very big, vice nice), power liftgate, garage door opener, rain-sensing wipers, a compass, and an auto-dimming side mirror. My suggestion: Put the radio satellite radio and AC outlet in with the multimedia gear and call it a technology package. As a practical point, it doesn't matter that much because a lot of GLKs will be sold with the Premium 1 Package, perhaps more than of the Multimedia Package.

There's also a Lighting Package ($970) but those options are sensibly linked: steerable Bi-Xenon front headlamps, cornering lamps, headlamp washers, and LED taillamps are all from the same general food group as opposed to a self-dimming side mirror and a power outlet.

Plenty of Competitors
By 2010, the market for premium compact SUVs with two rows of seats (never three) is expected to reach 140,000 units, up 72% in three years. Market mainstays include the BMW X3 and Acura RDX; vehicles such as the Toyota RAV4 are sized similarly but priced and equipped $10,000-$15,000 less, falling into a different segment. Other 2009 entries to the compact (or entry) premium SUV segment include the new or revamped Audi Q5, Lexus RX 350 replacement, Volvo XC60, and Cadillac SRX. Mercedes-Benz hints it would like 10% of that market and believes as many as 40% of world production is bound for American soil.

The GLK350 will likely win points on styling and uniqueness - it looks like nothing else on the road except a bit like a Jeep SUV (the front fender look) - and the name. Fuel economy is a wash in this segment at 16 mpg city, 21 mpg highway. The GLK350 desperately needs a diesel, especially since the larger M-Class and even larger GL-Class SUVs both offer clean diesels and get better mileage.

Should You Buy?
The entry premium SUV segment is getting crowded in a hurry. With the GLK350 and GLK350 4Matic (all-wheel-drive version), Mercedes-Benz has a pricing advantage over the BMW X3 of about $3,500 comparing all-wheel-drive models, or $5,500 if you opt for the rear-drive Benz (BMW is only all-wheel-drive). Stylistically, the GLK looks significantly different from the other MB SUVs. And with its creased front fenders, raked windshield, and big tri-star emblem, the also GLK looks unlike any non-Mercedes. With BMW, it's easy to mistake the baby X3 for the bigger X5 that costs $10,000 more. Although that's more of an ego problem for the X5 owner; few X3 owners mind being mistaken for X5 owners.

If I were buying or leasing, first I'd check the competition, and check real selling prices with rebates. Mercedes-Benz says its GLK pricing is meant to avoid having to offer rebates. If I wanted an affordable - so to speak - GLK, I'd order the rear-drive version (save $2,000) with non-metallic paint (save $720) and with MBTex upholstery (read: vinyl that looks like leather, saving up to $1,750). I'd add MultiMedia and Lighting packages along with TeleAid, and grudgingly leave off parking sonar since the Multimedia Package has a backup camera already. Total cost, $39,782. For a Mercedes-Benz, that's almost cheap.

Mercedes-Benz GLK350
Mercedes-Benz USA, www.mbusa.com
EPA Economy: 16 mpg city, 24 mpg highway (premium)
Price: $34,775-$52,602
Pros: Navigation, range of AV offerings, ride and comfort, option to omit all-wheel-drive, base price vs. BMW X3
Cons: Options packages make you buy more than you need. Awkward Comand controller location.
Bottom line: The fourth and smallest SUV in the Mercedes-Benz lineup is a winner. You'll love the navigation system if not the placement of the Comand control knob.

Technology features:
All-Wheel Drive: $2,000 (4Matic)
Cockpit control wheel: Comand standard
Active Cruise Control: N/A
Blind Spot Detection: N/A
Bluetooth: Standard
Chassis electronics: automatic stability control, traction control, anti-lock brakes, tire pressure monitoring system
Electrical socket, 12 volt: 2
Electrical socket, 115 volt: Premium Package
Hard Disk Drive: 40GB, with Multimedia Package
Headlamps: Steerable bi-xenon in lighting package ($970)
Head-Up Display (HUD): N/A
Heated / Cooled Seats: Heated front seats, $740
Lane Departure Warning: N/A
LCD display: 5" standard, 7" with navigation system
Navigation: Mitsubishi Electric, in Multimedia Package ($3,350)
Parking Assist: $790
Telematics Services: TeleAid, $650
Voice Recognition: Multimedia Package

Audio / Video Features:
iPod Adapter: $375 or Multimedia Package. Separate cables for iPod, USB devices.
Satellite Radio: Premium 1 Package
HD Radio: N/A
Memory Card Jacks: USB jack, PC Card slot with Multimedia Package
Premium Audio: Multimedia Package
Rear Seat Entertainment: $1,880 (DVD player, 2 screens)