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The new A-Class represents a significant improvement over the outgoing model, offering a better combination of ride and handling, allied to more powerful and fuel efficient engines, all of which is now available in a three-door body. Whatever the UK pricing range, fleet operators will be pleased to learn that Mercedes is predicting better residual values and more competitive contract hire rates.Eight years' ago Mercedes-Benz's A-Class was on a 'roll' - literally, after the company discovered during final trials that its new baby would need some expensive electronic damping systems to pass the infamous 'elk test' without tipping over.The technological might of Mercedes was humbled but eventually the handling problems with A-Class were sorted and after a production run of seven years and sales of 1.1 million cars, the company has unveiled the second generation.The new A-Class features the second-generation of an electronic stability program (ESP) fitted to its predecessor to improve 'swervability' and the seven new, or re-engineered, four-cylinder engines are also available in a new three-door version.The new car employs the same 'sandwich' construction - a steeply-inclined engine and transmission means the powertrain is pushed under the floorpan and not into the passenger cell in the event of an accident - and is clearly recognisable as an A-Class, with a body that is fractionally wider and longer, but clever packaging inside breaks new ground.The boot capacity is now increased by some 15 per cent to 435 litres, while the interior can be adapted to suit the task in hand without the need to remove the rear seats. The one-third/two-third split of the rear seating unit, incorporating seat cushions and backrests that can both be folded forward, makes it possible to produce a complete, flat loading area and increases the capacity of the luggage compartment to 1,370 litres.An added benefit is that the two-thirds' portion of the seat cushion can be removed and stowed under a height-adjustable luggage compartment floor to allow the stowage of taller objects.The nature of the last-minute discovery of the original A-Class's handling concerns precluded a back-to-the-drawing-board review of the car's suspension but now the new model features a 'parabolic', or curved, back axle that is claimed to offer more precise wheel location and improved roll support when cornering. In addition, a new damping system making its debut in a Mercedes is able to adjust the stiffness of an individual shock absorber to meet changing driving situations: under normal conditions, its soft settings translate into improved ride comfort while high-speed cornering causes the appropriate side to load up and reduce roll.Under the bonnet, there are three, newly-developed and EU4-friendly CDI diesel units and a new, turbocharged 193bhp petrol engine with the A200 Turbo, along with revised and marginally enlarged versions of the petrol-powered A150, A170 and A200. Although power and torque output of diesel and petrol engines compared to the outgoing series has been lifted by as much as 38 per cent and 46 per cent, respectively, fuel consumption of petrol engines has improved by as much as ten per cent.The launch of the new A-Class also marks the introduction of a brand-new continuously variable automatic transmission (CVT) called Autotronic. This is available with all engines and features a 'comfort' mode for optimum fuel economy or 'standard' setting, where the system is able to 'adapt' to driving styles and maintain higher or lower average engines speeds for greater or more relaxed performance. Alternatively, by moving the shift lever sideways, the driver can select one of seven stages in the system's range of ratios. There is also a new six-speed manual gearbox which, like Autotronic, comes as standard with A180 CDI, A200 CDI and A200 Turbo models.At the launch in Germany, journalists were not able to subject the A-Class to the 'elk test' but the car did feel more stable than its predecessor and new speed-sensitive electromechanical power steering offers a reasonable balance between feel and assistance. The car's interior, in particular, now sports a fit and feel more in keeping with the three-pointed star and there is a marginal but welcome improvement in knee and shoulder room, while the space between front and rear seats puts it on a par with some medium-size saloons