Why do I think MB or BMW will eat their lunch. Well for one both of those companies have been building sport sedan for a long time and here are the stats of the E55 vs. 996
E55 MSRP $80,700
http://www.edmunds.com/new/2004/mercedesbenz/e55amg/index.html?tid=edmunds.n.mmindex.content.num8.0.me rcedesbenz*
Weight 4087 lbs
HP 469 hp @ 6100 rpm
Torque 516 ftlbs @ 2650 rpm
weight to power 7.92 to 1
Car & Driver puts the E55's 0 to 60 at 4.3 seconds and 0 to 100 in 9.9 seconds.
http://www.caranddriver.com/article.asp?section_id=15&article_id=6567&page_number=3
996 C2 40th Anniversary MSRP $89,800
http://www.edmunds.com/new/2004/porsche/911/100371708/prices.html?tid=edmunds.n.mipmake.pricetable.num6. 1.porsche*
Weight 3020 lbs
HP 320 (not listed so I am going off memory)
Torque 274 @ 4800 rpm
weight to power 11.02 to 1
Autoweek claims a 5 second 0 to 60 for the 996
http://www.autoweek.com/search/search_display.mv?port_code=autoweek&cat_code=carnews&content_code=06118769&Search_Type=STD&Search_ID=1925426&record=1
Can't find any skid pad numbers for either right this moment but I would image the 996 would be on top. The point of this is the MB bests Porsche top of the line (in the same price range) Sports car. They are not even competing. I think MB has a version of that engine (5.5 liter V8) that puts out close to 600 HP and massive amounts of torque. If they went head to head I wouldn't be surprised to see MB come out on top.
Yeah Porsche can do it but at what cost and I do not think they will dominate as they have done in the past. Porsche built its reputation by building light weight cars that seemed to do the impossible. Now they build over weight cars that are about on par if not a little bit better than the competition. I love my 911 because it has soul and character. When I exit that car I I have a smile on my face. When I have driven a 996 I think to myself great car but it just doesn't do it for me.
It has been said over and over, Porsche needs to build a light weight car that smokes the competition and keep it affordable. They want volume but they won't do it by building $100K sedans that look like warmed over Caprices.