Mercedes-Benz C-Class 2011

After the resounding sales flop of the Mercedes-Benz C230 Kompressor hatchback, you'd be forgiven for assuming M-B wouldn't want to toe the entry-level waters any time soon. According to Inside Line, though, the success BMW has had with the 1 Series Coupe has prompted Mercedes to rethink a new two-door version of its latest C-Class.

The discontinuation of the CLK and the emergence of a new, larger E-Class Coupe means that there's space in Mercedes' lineup for a smaller, entry model that would do battle with the aforementioned BMW 1 Series as well as the slightly larger 3 Series and Infiniti G37.

Naturally, we can expect a couple of DOHC V6 powerplants, in this case utilizing direct injection for added power and reduced fuel consumption and emissions. Interestingly, reports indicate that we may also see a smaller V6 with twin turbochargers designed to battle the 300-horsepower BMW 135i. A naturally aspirated V6 may also be offered as a hybrid.

Finally, what Mercedes-Benz wouldn't be complete without an AMG version to spice things up a bit? Not this one, as a 5.5-liter twin-turbo V8 is likely on the menu along with the expected suspension and braking upgrades. We'll know how much of this is fact and how much is rumor sometime in 2011, which is when the C-Class Coupe is expected to hit the market.