The new Mercedes-Benz C-Class has a downsized diesel engine as its base oil burning option. It’s called the C200 BlueTEC, but the unit itself actually only displaces 1.6-liters – it’s based on the Renault DCi 130 that’s been longitudinally mounted.
While still fairly new and not all that common, it’s known to be a flexible, strong unit that has the feel and punch of a 2.0-liter. However, it seems that when powering the C-Class, it’s not strong enough, at least not if you base your opinion on this WhatCar review.
The car in question is a fairly low-spec one, so it gets a manual (six-speed) gearbox. Unlike Mercedes of old, though, the shifter action is reportedly very snappy and positive, so it’s not a chore to use (like it is for some on the rival BMW 3-Series). It probably needs to be, as the engine needs to be kept within its power band in order for progress to be linear and lag-free.