I'd like to import a C class to Bermuda but need to get the length down by 7" and the width by 1" to meet the maximum size restrictions of the island. Does Mercedes produce the car with smaller bumpers and mirrors, or can they be modified without great additional expense? Any help will be appreciated.

The width could be done by ordering the car without the passenger mirror. But the length will be a problem and may raise some issues with mercedes with regards to safety.
I don't know what the import rules are in Bermuda but have you considered an A-Class ?

yal
88 230E (W124)