I remember the first time I ever saw a Mercedes M-Class. Everybody was driving Jeep Cherokees in those days and Merc wanted in on the SUV (Sport Utility Vehicle) action. The one I saw was parked on a posh street in North Toronto – this was early 1998. I stopped to look at the thing and wow – what an ugly truck! Why would Mercedes put a three-pointed star on this big tank when the brand was built on sleek roadsters and luxurious sedans?

As usual I was wrong because the M has turned into one of Merc's best sellers and has attracted a raft of imitators. Mercedes was first into the "premium" SUV space but now everyone and their dog has an offering in the segment: BMW X5, Audi Q7, Acura MDX, Lexus RX350, Infiniti FX, Land Rover LR4, Volvo XC90, Porsche Cayenne, Volkswagen Touareg, Cadillac SRX, I think I've got them all, and of course the Jeep Grand Cherokee which started the ball rolling.

Anyway I was right about something – that first M-Class was a lemon. It had huge quality problems being built at a brand new factory in Alabama. It was a reliability nightmare until finally Mercedes sent a Canadian down to run the plant and he eventually straightened things out; however he couldn't do anything about the ugliness of the vehicle and its horrible ride and its beyond cheap interior.

It wasn't until 2005 that the second generation M hit the roads and it was a huge, huge improvement over the original in every respect, especially with a smooth new diesel engine. Now we're about to get the third generation of the M and once again it's light years ahead of the previous one.

Let's get to the "Montana" part of the story. This is a "Made in America" vehicle so the brass decided to stage its global launch at a fancy ranch in Montana. Montana is that state just south of the Alberta border (it touches B.C. and Saskatchewan too) and the locals call it "The Last Best Place." That is an accurate description. Montana is the fourth largest state in terms of size but has a population of less than a million people. What a perfect place for a ranch – or a premium SUV for that matter.

I drove the new M on perfect winding highways and across horse trails where no normal vehicle should go. It was comfortable, calm and collected in all circumstances including the off-road sections where a pack horse would have to be careful. You sit in an interior that is the equal of the high-end Mercedes sedans. The ride is excellent with little roll on the sweepers on the highway and sure-footed control up and down mountain trails.

Those old M-Class trucks were terrible gas guzzlers but recently they've been available with smooth new diesels. For the latest generation there's the latest generation of diesel engines too. The 3.0-litre V6 BlueTec diesel now cranks out 240 horsepower while delivering a 15 per cent reduction in fuel consumption compared to the previous one. That's the engine you should buy if you're planning on one of these and the vast majority of Ms that get sold in Canada are diesel powered. In Europe, where they get the good stuff, the M is available with a new four-cylinder turbodiesel. This is a 2.2L engine producing 201 hp while delivering 6 l/100km fuel economy on the highway. That's like a compact car, not a big SUV, but of course that engine won't be available in North America – and I have no idea why.

The M-Class isn't cheap – you'll pay about sixty large for a diesel-equipped one when they go on sale this fall. If you can't afford that, maybe you can afford a camping trip to Montana instead. The latest M-Class is the last and best one, but in the United States, Montana is undoubtedly the Last Best Place.