The car would get about 44 miles per gallon, according to Mercedes-Benz and could meet the most stringent European and U.S. emissions standards.
Mercedes-Benz also unveiled the more powerful S400, which uses a V6 gasoline engine. It should get almost 30 miles per gallon, according to Mercedes-Benz.
Mercedes also unveiled a highly fuel efficient luxury sedan concept vehicle, called the F700, that uses a new type of internal combustion engine.