The station wagon demand in the ’80s and, after a successful career, the S123 Series had to be retired.
The new S124 stepped in and brought new technologies to fill the needs.

The E-Class T-Model was launched in September 1985 at the Frankfurt International Motor Show. It carried over most of the features and styling from its sedan sibling. The rear, of course, was different. But the technical modifications went far beyond the look.

Since it was built to carry more loads, the T-Model was equipped with the new multi-link suspension and a hydro-pneumatic level adjustment suspension. That system kept the car at the same ground level, regardless of the load. Furthermore, the front suspension had received a strut-type damper.

An interesting feature for the E-Class T-Model was the option of 7-seats. In the trunk, a folding rear-facing bench-seat was installed. It was small and could have been used only by children. To improve the safety, for all the T-Model versions, the tank was located under the trunk, and, in an event of a rear crash, it fell down from its place and secured by ropes to not touch the road.

At the time of launch, there were 8 engines available for order. The 3.0-liter diesel and the 2.6-liter gasoline from the sedan were not available. But the 143 hp 3.0-liter turbodiesel was included. Also included to order were the 4-speed automatic transmission and the all-wheel-drive 4Matic system. In 1989, the diesel engines were modified to decrease the emissions, improve the fuel-efficiency, and as a result there was also a slight power increase for the 2.0- and 2.5-liter turbodiesel engines.