The 1988 model lineup included a new, crisply styled 300CE coupe, and a five-speed manual transmission was now offered on 260E and 300E. Considering that just a few years earlier diesels had made up over three-quarters of all Mercedes sold in the United States, the disappearance of diesels from Mercedes' 1988 lineup may have been a surprise. But increasingly severe particulate emissions standards left the company little choice. This also meant that Mercedes was finally selling a gasoline-powered wagon here as a 300TE.
The 1989 model range was virtually unchanged except that the five-speed manual transmission (few of which were ordered anyhow) was gone from the lineup again and a passenger-side front airbag was a new option.
A diesel returned to the 1990 W124 line with the introduction of an all-new 2.5-liter turbocharged inline five aboard the awkwardly named 300D 2.5. The 260E was also inelegantly
renamed the 300E 2.6 for no apparent reason. By stealing the DOHC, 24-valve cylinder head from that year's new 300SL roadster, the 300CE's 3.0-liter straight six now made a healthy 217 horsepower. Beyond that, if you wanted Mercedes' 4Matic all-wheel-drive system on your 300E sedan or 300TE wagon, you could get it.
With a new E-Class due for '96, the only substantial change to the '95 line was the elimination of the limited-production E500 due to the emition process. E 500 consumes 1 litre every 4K. This become this model wasn't so wanted by people.
Mercedes benz put "Master Piece" emblem in W124 prodiction '95-'96 which the option become more variatif, cruise control, passanger air bag, and the electric krey also being attached.
Mercedes-benz stopped the W124 model in the mid year 1996, and than mercedes benz produced the new E-class which typed as W211 model.