Going after the eco-friendly conscious of its customers, Mercedes-Benz is about to launch a four-cylinder version of the S-Class model. The S-Class sedan will be powered by a 2.2 liter four-cylinder diesel engine.

Dubbed S250 CDI, the S-class generated 204 horsepower and 369 lb-ft of torque. Fuel consumption is said to be around 42 MPG.

Despite its main competitor launching a more eco-friendly flagship model, BMW says it has no plans to offer a four-cylinder variant in the 7 Series family.

“I like selling 7-series cars with six- and eight- cylinders,” Reithofer said last month at the Paris Motor Show. “What we need to offer with these cars in the future is electrification.”

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BMW recently shuffled its U.S. 7-Series lineup, ditching the previously standard eight-cylinder engine for a more fuel efficient six-cylinder unit.

In Europe, BMW is selling a 730d model with an output of 245 horsepower and EU drive cycle at 34.6 MPG (U.S.) with CO2 emissions of 178 g/km.

In 2012, Audi will also launch an A8 Hybrid with four-cylinder engine.

BMW has invested 1.2 billion euros in fuel-saving technology, while Mercedes nearly doubled its investment on “green” development to 1 billion euros this year.

[Source: AutoNews ]