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).

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