At the Geneva Motor Show, Mercedes previewed its first-ever, series-production diesel-hybrid model, the E300 BlueTEC HYBRID that will be available in both sedan and Estate body styles when it is launched onto the market at the end of 2011.

The hybrid system pairs a 2.2-litre four-cylinder diesel engine developing 204HP with a 20HP (15kW) electric motor for a combined output of 224 horsepower and a torque of over 580 Nm or 427.8 lb-ft.

The electric motor, positioned between the internal combustion engine and the 7-speed automatic transmission, assists the diesel unit when the car is accelerating (boost effect) and is used for the recuperation of braking energy in alternator mode. Furthermore, it can be used to power the car alone for short distances at speeds of up to 35 km/h or 22 mph.

According to Mercedes, the E 300 BlueTEC’s hybrid system doesn’t restrict boot space and variability in the slightest, as all of the hybrid technology, including the high-voltage battery, is housed in the engine compartment.

The German automaker said that the E 300 BlueTEC HYBRID returns a combined fuel economy of 4.1 lt/ 100km (equal to 57.4 mpg US) with corresponding CO2 emissions of 109 g/km.