The Mercedes-Benz 240D was introduced in 1973 in Europe (1974 in North America) as a new diesel-powered variant of the W115 chassis, outranking the 220D as Mercedes' most powerful diesel car. Introduced in 1973 at a price of 19,913.40 Marks, the cost was four times the typical car of the time. It had many luxuries, such as available heated seats, cruise control, leather seats, and a powered sunroof. It was at the time the fastest diesel engine available, though its 4-cylinder, 2.4 liter engine only produced 65 hp (48 kW). Along with a 3300 lb (1,500 kg) weight, performance today is considered extremely poor. Acceleration was negligible, and top speeds hardly exceeded 160 km/h (~100 mph).
In 1976, production of the W115 chassis ended and the 240D became part of the W123 chassis family along with a more powerful version, the 88-hp Mercedes-Benz 300D. For the 240D, engine power was also beefed up to 53 kW (72 hp), which however still made it a very slow car. The 240D was last imported to North America in 1983 while production continued until 1985, but many cars remain on the road today 20 years later, a testament to the quality and durability of the original design.
Minor changes to the car's exterior design were introduced for the 1983 model year, from which on all versions of the W123 came with rectangular headlights and an optional 5-speed manual transmission, previously only available for higher-performance gas engine models.
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