Green Diesel? Mercedes Takes on Japan.

Next fall, the luxury carmaker begins marketing a diesel sedan in Japan -- a market notoriously resistant to what's seen as a dirtier engine. If any foreign auto maker can be confident of launching a successful new model in Japan right now, it's probably DaimlerChrysler's (DCX) luxury unit Mercedes Benz. Spurred by a raft of new vehicles in 2005, sales of the luxury brand rose 4% last year in Japan, compared to a 0.4% decline for the market as a whole.