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<i> Times Staff and Wire Reports</i>

Mercedes-Benz Forecasts More U.S. Sales: The German auto maker predicted that its new marketing focus and a new sport-utility vehicle will help lift its U.S. sales to 125,000 cars a year by 1998--twice as many as it sold in the United States two years ago. Also key to the forecast is the first complete make-over of the company’s E-Class sedan, which was introduced 10 years ago and became the best-selling Mercedes in history. The new look of the 1996 E-Class models, which go on sale today, is a departure from the conservative styling of their predecessors.

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