Car and Driver's archival photo gallery captures a pivotal moment in luxury sedan competition. The 1997 showdown pitted the Infiniti Q45t, Lexus LS400, BMW 540i, and Mercedes-Benz E420 against each other when the segment was defining its modern identity.
The Infiniti Q45t represented Nissan's flagship effort with a 4.5-liter V8 delivering 278 horsepower. The Lexus LS400 countered with proven reliability and a similar displacement engine. BMW's 540i brought European sport-sedan dynamics with its 4.4-liter V8 and handling-focused chassis. Mercedes rounded out the field with the E420, delivering traditional German luxury in a slightly smaller package.
This era marked a transition point for luxury cars. Japanese manufacturers were aggressively challenging German dominance with attention to interior quality and dealer service. BMW and Mercedes remained focused on driving engagement and heritage prestige. Buyers then faced a genuine choice between Japanese refinement and European character.
The photo collection documents design language from each brand during the late 1990s. Interior treatments ranged from the minimalist Japanese approach to Mercedes' leather-heavy traditionalism. Exterior proportions reflected different philosophies. The Q45t and LS400 favored understated elegance. The BMW adopted sportier lines. The E420 maintained classic Mercedes proportions.
Pricing dynamics favored the Japanese models, which offered comparable performance and luxury at lower cost. This price advantage would gradually erode the German brands' market share among buyers seeking value. Within a decade, this competitive landscape shifted as luxury became more accessible and technology differentiation grew.
These images serve as a historical snapshot of when the luxury sedan market truly opened up to international competition. Each car represented peak engineering for its brand at that moment, before SU