Initially available in sedan and a station wagon configurations, a fastback coupé (SportCoupé) variant followed and was later renamed to Mercedes-Benz CLC-Class.

Styling themes were carried over from the previous W201 series, but the new series had a smoother and rounder design than the last generation of compact Mercedes, with styling cues from the W124 E-Class (short, high trunk and taller tail lights), W140 S-Class (front end), and R129 SL-Class (headlights).

The diesels now featured common rail direct fuel injection and variable geometry turbochargers.

Notably (post 2005), for the first time, the number designations were no longer equivalent to the engine displacement, more specifically in the Mercedes C200 (1.8-litre), C240 (2.6-litre) and C200 CDI (2.2-litre).

The new structure was significantly lighter using aluminium and high-strength steel extensively throughout the body, resulting in a 100-kilogram (220 lb) weight decrease.

[4] Production was also undertaken at Mercedes-Benz plants in East London (South Africa), Iracemápolis (Brazil) and Tuscaloosa, Alabama (United States).

[7] The model received external body cladding, a 40 mm increase in ride height, 4Matic AWD and additional drive modes.