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Eurowagon or SUV? That seems to be the question in households where gas guzzling and trucklike handling have taken the edge off sport utility enthusiasm.

Eurowagon is such a great word, I wish I’d made it up. It defines the new generation of upscale station wagons from Europe, mostly pricey four-door hatchbacks that perform nearly as well as their sedan counterparts. They also present a choice for drivers who want responsive automobiles instead of cumbersome SUVs.

BMW, Audi, Volkswagen, Volvo and Saab all offer interesting, driver-oriented Eurowagons, as does Mercedes-Benz, which last model year treated us to a wagon version of its updated E-Class models. For 2002, Mercedes’ smaller C-Class gets a new wagon all its own.

The C320 wagon is a quick and nimble take on this practical configuration, adding some roomy stowage to a car that’s enjoyable to drive. The C-wagon has Mercedes’ typically solid road manners, vaultlike construction and high-quality interior.

C-Class is the entry class for Mercedes, although a wagon with a base price of more than $38,000 is hardly what most people view as entry level. With its options and upgrades, the test car soared past the $45,000 mark. A true entry-level Mercedes is the new C230, which Mercedes calls a sports coupe though it’s really a two-door hatchback, that starts at a more manageable $25,610.

The C320 wagon is a good-looking craft, its sharply canted front end balanced nicely by the curved aspect of the rear hatch. The stylish slope of the back end steals from cargo space, however.

But that’s part of the deal with Eurowagons, with some of the utility compromised by design considerations.

One uncompromising aspect of the C320 wagon is its V-6 engine, the same smooth mill found in the E320 sedan and wagon, CLK320 coupe and cabriolet, ML320 sport utility and the SLK320 sports car. In the E-Class, the 3.2-liter engine is strong but not terribly impressive. In the lighter C-Class cars, it really sings.

In the wagon, acceleration is brisk, with a 0-60 time of less than 7 seconds, according to Mercedes. The four-wheel disc brakes, with standard antilock, are very strong.

The wagon comes only with a five-speed automatic, which shifted precisely and always seemed right on top of things. An electronics program monitors driving behavior and adjusts shifting accordingly. There’s a well-designed Touch Shift feature, set up for those times that a driver wants to shift manually.

The ride is also typically Mercedes, stiff as a sports car’s but never crossing over into harshness. Major road irregularities, such as potholes, are absorbed nicely, though passengers may feel jostled on rough surfaces. I favor this approach to suspension dynamics, but those who enjoy the softer ride of most SUVs or luxury cars may find it uncomfortable.

Same with the steering. Though very direct and responsive, it may seem too stiff or heavy for some drivers.

The C- wagon comes standard with a full load of safety features, including Tele Aid communications system; side airbags front and rear, with head-protecting side air curtains up front; and electronic stability program to fight skids.

It also comes standard with every power feature known to exist, steering-wheel controls for stereo and climate control, and a 10-speaker stereo system. Options on the test car included an integrated phone system, audio and CD player, $1,795; leather seats, $1,410; rain-sensing windshield wipers and glass sunroof, $1,250; an Avant Garde package that includes light-alloy wheels with wide 16-inch tires, unique front bumper, and aluminum and leather interior trim, $1,050; and brilliant silver paint, $640.

Including delivery charge, the extras put more than $7,000 on the base price. That’s a steep bottom line but still in the vicinity of the luxury SUVs. At that, you get a small Mercedes wagon with all the style and trappings of the big ones.

Mercedes-Benz C320 Sport Wagon

Vehicle type: Five-passenger, four- door wagon, rear-wheel drive.

Base price: $38,450.

Price as tested: $45,640.

Engine: 3.2-liter V-6, 215 hp at 5,700 rpm, 221 lb-ft. of torque at 3,000 rpm.

Transmission: Five-speed automatic.

Curb weight: 3,495 lbs.

Wheelbase: 106.9 inches.

EPA mileage: 19 city, 25 highway.

Highs:

– Good performance.

– Nice style.

– Technical features.

Lows:

– Expensive options.

– Style over cargo.

– Hurts SUV sales.