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In January 1976 the W 114/115 series "Stroke Eight" models were replaced by a totally reconstructed type range with the internal designation W 123. The model family ranged from the 2.0-liter 4-cylinder Diesel with 55 hp to the 2.8-liter 6-cylinder injection engine with 185 hp.

A technical novelty was the safety steering column, realised for the first time in series 123. Steering aggregate and steering column tube were linked together by a corrugated metal tube. In case of a crash, this corrugated metal tube could buckle to the side. This was a further step to reduce the danger of the column tube invading the interior of the car.

The various big round dual head lamps were a characteristic design of the new models. Next to the main head lamp, under a common lens, there was a smaller halogen fog lamp. Differing from that, the two top models of the series, Types 280 and 280 E, were provided with rectangular halogen wide-band head lamps. Externally both 2.8-liter models differed in three further points from their less powerful brothers. Type 280 as well as 280 E had a twin-scroll exhaust system - with twin end pipes, chromed air induction grill in front of the windscreen and an additional chrome strip under the rear lamps.

The range of engines was mostly taken over from the preceding models. The only exception was the Type 250, which was not provided with the old 2.8-liter aggregate M 130 any more, but with the newly constructed 2.5-liter 6-cylinder engine.

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