Just a few months after the unveiling of the third generation of the C-Class (W204), the station-wagon version was introduced.
It was launched at the 2007 Frankfurt Motor Show.

The third generation C-Class came into a moment where the previous facelifted version of the W203 faced some reliability issues. To prevent this, the company insisted on extensive testings. By the time of its launch, the C-Class W204 was the most tested vehicle by the German car-maker, with over 24 million kilometers (150 million miles) of testing.

The third generation of the C-Class featured a 5 cm (2”) longer wheelbase when compared with the predecessor. That led to almost the same increase in length, just slightly longer. That led to better legroom for the rear passengers, for which the previous generation was criticized. Due to a longer roof, the rear headroom was no longer a problem for tall passengers. It featured a standard 60:40 split rear bench seat, to increase the trunk space. That lead to an increased load volume of up to 1500 liters (52.9 cu-ft) which was 146 liters (5.1 cu-ft) more than on the previous generation.

For the driver and passengers comfort, the C-Class T-Model featured three versions for the audio system: Audio 20, Audio 50, and COMAND APS. The latter featured a GPS navigation system.