I found this scan on a German language car forum (I read and speak the language) and I couldn't believe me eyes.
According to this scan, Mercedes is planning two V8 C-Class models using the 4.7 V8 found in the GL450 and S450. There will be two power settings. I am guessing that the "weaker C450" (???) will have the standard 340-horsepower while the more "powerful CXXX"(???) will get a power boost? Perhaps something in the 400-horsepower range? Simply unbelieveable!
What's even more amazing is that apparently they're developing a new 6-speed manual transmission capable of handling the torque that will be offered in these two V8 C-Classes and also in the C350 and AMG C63. I am guessing the new C350 lacks a manual transmission option for exactly this purpose: the transmission wasn't ready.
Amazing news! This segment just heated up big time!