The Mercedes CLA was unveiled at the Detroit Auto Show to huge accolades just months ago. Now Mercedes amps the CLA up with an AMG version, the CLA45 AMG. It’s a 2.0 liter four-cylinder pumping out an impressive 355 hp and 332 ft-lbs of torque. 0-60 time is just 4.5 seconds. This motor is rated at 178 hp per liter and Mercedes states that this is the most powerful four-cylinder production engine.

Mercedes has quite a future BMW2 Series fighter on their hands. The CLA is in the shape of their classic four-door coupe, a segment they started back with the 2004 CLS. The CLA base price is a low $29,900 and it promises to give BMW a run for their money. This CLA costs $5500 less than Mercedes previous least expensive vehicle in the US, the C class. The all-new 2014 CLA250 with a 208 hp, 258 lb-ft of torque arrives in dealerships September 2013. It comes in either front-wheel drive or all-wheel drive and utilizes a 7-Speed DCT.

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The interior is just drop dead gorgeous and features a 5.8” center mounted display. The only problem with interior of the CLA is that the back seat is nearly unusable unless you are 5’4” or less. It’s unfortunate because it means that this rather good looking 2 Series fighter has a fairly significant drawback.

The CLA 250 at NYIAS had what looked to be an Alcantara interior. Mercedes is definitely aiming for the young buyer here. If they hit anyone less than 60 with this it’ll start dropping their demographics age, something Mercedes desperately needs. The Germans have started fighting for the bottom of the market and it promises to be an interesting fight.