Mercedes-Benz S-Class vs Peugeot 308

What's the difference?

Mercedes-Benz set out to restore the S-Class' place amongst the greatest sedans in the world.

In the heavily-optioned, near-$250K-plus S450 as well as the extended S450L at $300K as tested (the sweet spot of the range for now), we reckon the Germans have succeeded, pushing safety, comfort and technology boundaries, in a package that is true to the heritage of the series.

Tax-fuelled sky-high prices will certainly keep the S-Class niche in Australia, but the car is more than good enough to dominate its tiny corner of the upper-large luxury car sphere.

The best new car in the world? We reckon it's highly likely. Mission accomplished, Mercedes.

The 308 GT Sport plug-in hybrid is a beautifully designed small hatch that is comfortable, enjoyable and easy to drive. The electric motor gives this hatch good acceleration and the equally impressive handling makes for a fun car to drive too. There's good storage, a decent boot and room for even tall people like me in those back seats.

There are two clear drawbacks, however: the price is steep compared to the petrol version; and you'll need to plug the vehicle into a power supply each night if you drive the car daily and want to achieve the 2.4L/100km fuel economy we did in this test.

Last, but probably the most important thing you'll read is that Peugeot will bring fully electric cars to Australia from the second half of 2023, from SUVs to (hopefully) the battery electric version of this very 308 hatch.

If it was my money, I'd hold on - you're going to have your next car for quite a long time so it's worth waiting for the fully electric versions.

Note: CarsGuide attended this event as a guest of the manufacturer, with meals provided.

Most Mercedes models have followed the Russian Doll-style cookie-cutter styling theme, and the heavy family look continues with the W223.

Still, the flush door handles do add a touch of Tesla-esque modernity, while the elegant silhouette and clean lines are in keeping with the luxury aspirations. Larger in every dimension compared to the old W222, the S450 is some 71mm-longer in wheelbase (3106mm) than before while the LWB's has stretched out by 51mm (3216mm), benefiting proportions as well as interior packaging.

AMG-branded wheels look sporty but – in the S450 at least – they're perhaps a tad too gangster. A set of flush alloys would give it a more-modern and techier appearance, in our opinion.

Overall, however, the S-Class ‘7' possesses the prerequisite richness of design. It isn't as bold and mould-breaking as models like the W116 were back in their day, but the styling is still a success.

By the way, the latest S-Class is the first Mercedes to employ the MRA2 longitudinal platform, which is rich in lightweight steels (50 per cent aluminium), is correspondingly stronger than before but also 60kg lighter.

With a drag co-efficiency rating as low as 0.22Cd on some overseas grades, the W223 is one of the most aerodynamic production vehicles in history.

There hasn't been a Peugeot in the last five years that wasn't stunning. There's the high quality feel in their build, and premium yet unique look - like a new Volvo but with more flair. And the 308 hatch and this hybrid version has all of that.

From the sinister looking LED tail-lights to the wide mesh grille, you really get the feeling that Peugeot is hitting its design stride.

This 308 GT Sport plug-in hybrid looks identical to the petrol version with its low, wide stance, and big dark alloy wheels that fill up its arches.

The cabin is sporty, lavish and minimalist with quilted leather upholstery seats, the digital driver display and media screen, and avant garde small angular steering wheel.

For the beginning of our day with the S-Class, we were chauffeured from home to a mansion in Kew, a blue-chip Melbourne suburb. Our heavily-optioned S450L featured most of the aforementioned extras – including the Business Class Package and Rear Entertainment Package – and the experience was predictably, sumptuously memorable.

Reclining individual rear seats with easy-reach tablets, armrests offering access to all multimedia and available climatised and massaging cushions and backrests... we're no longer in our normal ride, Toto.

Yet, all these trinkets and gizmos are mere add-ons, that can turn a stretched Caprice into a flash hen's night carriage if enough money and glitz is thrown at it.

No, the new S-Class must impress in an altogether less tangible and more philosophical manner, involving all the senses, and not just what we see, hear and touch. It must appeal beyond the superficial. Otherwise, it is not a large Mercedes-Benz luxury sedan in the classic manner.

This is a Herculean task for the Stuttgart designers and engineers. By and large, though, the Three-Pointed Star has succeeded in achieving something special.

In its perception of peerless quality and engineering, the W223 is striving to move forward and look back simultaneously to the glory days of the seminal W126 (1980-1991). This is through meshing traditional virtues like solidity and quality materials while dazzling its passengers with technology that is still friendly enough to want to enhance your experience.

You can sink into the soft lounge seats, watch the world pass by silently outside and never be aware of the road underneath or the engine ahead. Double glazing, exquisite and aromatic fabrics and materials and lush tactile surfaces work their magic inside the car, while an airtight and aero body, solid platform, air suspension and a muted yet muscular powertrain all do their thing underneath. The atmosphere is special and rarefied. That's what an S-Class needs to be and that's what is happening in our $299,000 (as tested) S450L.

The same more-or-less applies up front, as the same trim, leather, wood and technology surrounds the driver and passenger. The spectre of the car that is surely The Car of the Last Decade – Tesla's Model S – is evident in the portrait touchscreen and sparse, almost wallflower dashboard design and layout. No big imposing architectures here.

Yet, while the American upstart actually takes stuff away, the S-Class packs the cabin with subtle features that – like when the planes stopped flying last year and the birdsong subsequently returned – only become obvious once the cabin's design simplicity clears all the white noise for you to be in a better frame of mind to enjoy them.   

Take the haptic interface, for example, as it is perhaps the best we've experienced; the sense of well-being garnered from the cumulative effects of profound seat comfort (the massaging function was never switched off), cocooning micro climate environmental control, orchestral levels of audio entertainment and the theatre of light and vision performed by the two available screens; it is an automotive experience like no other. And the eye-tracking 3D-effect navigation set within the electronic instrumentation. No need for cinematic glasses to get the effect. The driving position itself, by the way, is also first class.

Room to stretch and grow for sure, and in every direction. But room for improvement? You betcha.

Your tester had a headache after a little while staring at that woozy 3D map. The central vents – four at the front, two in the rear – look and feel cheap, leaving us mentally redesigning them; they are frightfully out of place here; the carryover column-stalk auto lever should have been binned in 2005. And, even though the digital instruments have a number of options, none are elegant enough for the S-Class. That's an especially subjective criticism, clearly, but one that – in the context of classic Mercedes luxury sedan contenders – is justified given how timeless the Bruno Sacco era of Daimler design was. Look him up, kids.

Still, after a couple of hours behind the wheel, with our senses reset to calm, it is obvious that the S-Class cabin is a unique and wonderful place – as it should be at a cool quarter-of-a-million dollars.

Job done.

PS At 550 litres (20L more than before), the boot is massive and luxurious enough to sleep in.

Peugeot's 308 is a small hatch, think Toyota Corolla, only beautiful and more spacious.

So, the 308 can carry five people with just enough head and legroom for a semi-giant like me (I'm 191cm) to sit behind his driving position.

There's good cabin storage with large door pockets, a long and deep storage box under the centre armrest up front along with two cupholders up there, too.

The boot has a cargo capacity of 361 litres, which isn't bad for this class.

To power devices there's a wireless phone charger under the dash, and USB ports for front and rear passengers.

A quirky Peugeot design feature is the low-placed angular steering wheel. I found had to squeeze my knees past to sit in the driver's seat. I'm not sure what size human was used as the test case for this but it wasn't somebody with stilts like mine, I can tell you that.

The 308 GT Sport plug-in hybrid lists for $64,990 before on-road costs. The ‘GT Sport' part of the name is the grade and the hybrid only comes in this grade. In comparison the priciest petrol 308 hatch is the GT Premium for $48,990. The 308 GT Premium also comes in wagon form and that's $50,490. Alas the wagon doesn't come as a hybrid.

Is it good value? Nope. A charge of $16,000 over the cost of the GT Premium petrol version with almost identical standard features is pretty unreasonable. It's also not good value when you could buy a fully electric car about the same size such as a new Tesla Model 3 for $64,300, or a Polestar 2 for even less at $63,900.

However if your heart is set on a PHEV, the main competitor is another Euro hatch - the Cupra Leon VZe from $59,990.

The 308 GT Sport plug-in hybrid standard features include LED matrix headlights, 18-inch alloy wheels and a panoramic sunroof, while inside there are two 10-inch displays - one for the media system and one for the driver's gauges.

It also has black full-grain Nappa leather seats (heated and massaging for the driver and front passenger), a 10-speaker Focal stereo system, proximity unlocking, dual-zone climate control, sat nav, wireless phone charging, plus Apple CarPlay and Android Auto.

Where are the V8s?

Right now, the only W223 you can buy is powered by an all-new 2999cc 3.0-litre in-line direct-injection six-cylinder turbo petrol engine dubbed the M256, complete with double overhead cams, an electric compressor intercooler and assistance from a 48-volt mild hybrid system and integrated starter-generator, adding 16kW and 250Nm to the 270kW of power at 6100rpm and 500Nm of torque from 1600-4500rpm.

The 9G-Tronic torque-converter automatic transmission and 4Matic all-wheel drive system combination is a first for the S-Class in Australia.

Top speed is limited to 250km/h, while the 0-100km/h sprint-time takes just 5.1 seconds in both models. Impressive for a two-tonne-plus luxury limo.

The 308 GT Sport plug-in hybrid has a 1.6-litre turbo-petrol engine making 132kW and 250Nm combined with an electric motor at the front wheels making 81kW and 320Nm.

The combined output of the engine and motor working together is 165kW and 360Nm, and sending that grunt to the front wheels only is an eight-speed automatic transmission.

Acceleration is good. We're talking 0-100km/h in 7.4 seconds which is more than two seconds quicker than the petrol-only variant.

With the aid of the mild-hybrid system, the S450 returned a combined average of an impressive 8.2 litres per 100km, which translates to 187 grams of carbon dioxide emissions per kilometre. 95 RON premium unleaded (or higher) is recommended. In the urban run it consumes 11.3L/100km (11.5 for S450L), and just 6.4L/100km (6.5 for S450L) in the extra-urban result.

At 76 litres, the fuel tank will allow a combined average range of about 927km between refills.

This is what it's all about right? Well, Peugeot says that after a combination of open and urban roads the 308 GT Sport plug-in hybrid will use 1.3L/100km.

At the launch I did a 34km test loop through Sydney's Northern Beaches with a good mix of morning traffic and hilly terrain. At the end of my journey the trip computer reported an average fuel consumption of 2.4L/100km.

I drove the entire loop in Hybrid mode, but there is a Sport mode, a Battery Save mode and EV mode.

If you were to drive in EV mode Peugeot says the electric driving range with a full battery is 60km.

At the start of my drive the battery was about three-quarters charged with the gauges displaying 38km of range.

A mileage of 2.4L/100km is still excellent fuel economy and from experience I can tell you a petrol-only variant would be up around the 8.0 or 9.0L/100km mark for the same trip.

There is a catch, and that is you'll need to plug in your hybrid 308 daily to charge the battery if you plan to achieve the fuel economy I did.

Charging will be slow, however, because Peugeot has fitted this hybrid with a small 3.7kW on-board charger. So, even using a fast charger you'll be looking at more than four hours to fully charge the 12.4kWh lithium-ion battery.

This charging time and small electric driving range in return could be a deal breaker for some and it's the reason why I've given the 308 GT Sport plug-in hybrid a lower mark. If you aren't always charging this car your fuel usage will rocket. New buyers unaware of this could end up using more petrol than ever.

A fully electric vehicle may be a better solution for city dwellers.

In former times, as the Germans say, a ‘450' on the boot indicated V8 power. In the W116 S-Class era it was one of the world's most evocative badges when ‘SEL' was also attached.

As mentioned earlier, though, it's the M256 3.0-litre turbo-petrol with a 48-volt ‘mild hybrid' electrical system that's doing the driving, to all four wheels. The real V8 W223 will probably surface later this year or in early 2022 with the S580L flagship. Bring it on.

This is not to say that S450 isn't good enough. With that electrified assistance, the blown straight six is smooth and swift off the line and rapid as the auto seamlessly steps up through all nine gears. Because it's so hushed and refined, it doesn't feel 5.1s to 100 clicks quick, but watching the speedo says otherwise – acceleration is assertive and strong right up way past the legal speed limit.

All that's missing is the burbling soundtrack of a classic Benz bent-eight. Oh well. Outstanding economy is a price we're literally willing to pay in lieu.

Even more impressive is the S450's ability to hustle along mountain roads like an overgrown sports sedan.

Now, for Australia, all S-Classes are fitted standard with an adaptive ‘Airmatic' air-suspension set-up, including air springs and self-levelling tech. In Comfort up to 60km/h, the ride height can be raised by 30mm, or lowered by 10mm under the standard 130mm baseline in Sport at any velocity, while in Sport+ it falls another 17mm.

With that in mind, yes, the standard air suspension performs a magnificent job smothering out most surface imperfections around town. Yet its real other party trick is to tighten up the chassis when corners get interesting and Sport mode is selected. Aided by progressively weighted and reassuringly responsive steering, the Mercedes tips into turns with precision and poise, slicing through with virtually no discernible body lean or understeer.

Now, we're not talking a leisurely drive on rural highways here, but Healesville's famous Chum Creek Road, where even a Porsche Cayman would feel like it's had a strenuous dynamic workout. The S-Class can be hurried along with confidence and finesse, displaying outstanding handling and roadholding for a 5.2-metre long limo. And the fact that the ride quality only suffers marginally when the red horns are out is all the more remarkable.

Back in the cut-and-thrust of inner-city peak-hour traffic, the Benz in Comfort mode continued to reveal its driver-orientated yet passenger-focused twin-personalities, zipping in and out of gaps while remaining comfy and composed inside.

Only when parking in tight spots are you truly aware that the W223 is longer than a Mazda CX-9. The optional four-wheel-steering system is claimed to slash the turning circle to A-Class hatchback levels. 10.9 metres is the claim.

The 2021 S-Class never ceases to amaze and delight.

Once you've become accustomed to the strange, low steering wheel with its angular design the 308 GT Sport plug-in hybrid is superb to drive. The suspension is composed and comfortable, the handling is excellent, the steering is light and with the combination of both the electric motor and petrol engine, acceleration is good.

For those of you who haven't driven a plug-in hybrid before I think you'll like the quiet electric power at low speeds and the feeling of ‘instant' acceleration the electric motor adds, but compared to driving a regular petrol car the experience is much the same, just less noisy and smoother.

The petrol variant of the Peugeot 308 achieved low scores when it came to protecting its front passengers in ANCAP's frontal off-set crash test and it was for mainly this reason that the vehicle scored four out of  the maximum five stars in its ANCAP and equivalent European safety rating.

That said, Peugeot Australia has added more safety technology to the 308 than the European version of this car, such as a more comprehensive autonomous emergency braking (AEB) system as standard.

Along with AEB that can also detect cyclists and pedestrians, other standard safety tech includes lane keeping assistance, blind spot warning and rear cross traffic alert.

For child seats there are three top tether anchor mounts across the second row and two ISOFIX points on the outside rear seats.

There are front and side airbags for the driver and co-pilot, while curtain airbags cover the first and second rows.

Unlike many luxury brands that persist with a sub-par three-year warranty, Mercedes-Benz offers a five-year/unlimited kilometre warranty.

Intervals are every year or 25,000km, with a capped price service plan starting at $800 for the first year, $1200 for the second year and $1400 for the third year, totalling $3400. Alternatively, there is a Service Plan starting at $2700 for the first three years (saving $700 from the normal capped-price service plan), $3600 for four years and $5400 for five years.

The 308 GT Sport plug-in hybrid is covered by Peugeot's five-year/unlimited-kilometre warranty.

Peugeot will cover the hybrid battery with an eight-year/160,000km warranty.

Servicing is recommended at 15,000km or 12 month intervals and it can be expensive. Peugeot says the first service will be $425, then second is $771, the next is $425, then at 60,000km the costs will be $900, then $439 for the following.