The Mercedes-Benz 300TD was a diesel powered variant of the S123 Wagon that debuted for the 1979 model year. The 300 TD was powered by Mercedes' OM617.912 engine, which was a 3.0L diesel inline five powerplant. This engine was originally rated at 80hp, but an update for the 1980 model year increased output to 88hp, while torque was 127 lb ft for both engines. Power was sent from the engine to the rear wheels via manual or automatic transmission options. Production of the S123 300TD ended in 1986, but the model series would continue life in the next generation Mercedes-Benz E as the S124 Mercedes-Benz 300TD.