In 1988, two of Germany’s most respected carmakers joined forces on a project that would become legendary. Porsche began developing a secret project, called “Project 2758,” based on a regular sedan that was as common in Frankfurt as it was in San Francisco.
Little did the engineers know, this unassuming sedan would soon become a game-changer, even helping to save one of the companies from going under.
From the outside, it looked just like the diesel models often seen shuttling people to schools and airports across Germany. But under the surface, Porsche had transformed this car at their renowned Weissach development center.
The result? The 500 E—a sleeper car that’s both subtle and brilliantly engineered. Decades later, it still stands as one of the finest examples of a high-performance sedan in disguise. Read on to discover why this supercar wrapped in a simple package became a true icon.
The Mercedes-Benz 500 E The Hidden Porsche Collaboration That Created a Legend
In 1988, two of Germany’s finest carmakers—Mercedes-Benz and Porsche—came together to create something extraordinary. At a time when Porsche was facing financial difficulties, Mercedes saw an opportunity to tap into Porsche’s engineering expertise.
This collaboration, codenamed “Project 2758,” aimed to create a high-performance version of the Mercedes W124 E-Class, and the result was the Mercedes-Benz 500 E—a car that would become legendary for its mix of subtlety and power.
Unlike today, where Porsche and Volkswagen are closely tied through shared ownership, this partnership was an unexpected move. Instead of teaming up with Audi or Volkswagen, Mercedes enlisted Porsche to turn the W124 E-Class into a super sedan, rivaling BMW’s high-performance models.
Mercedes already had a successful performance sedan in the 190E 2.3-16, built in collaboration with Cosworth, that competed with the BMW M3.
However, they wanted something even more powerful to go up against the BMW M5—a vehicle that had made waves when BMW launched the E34 version in 1988.
To transform the W124 E-Class into a serious performance machine, Mercedes gave Porsche a very specific task. The goal was to install the five-liter V8 four-valve engine from the 500 SL into the W124, making it capable of hitting high speeds on Germany’s famous autobahns.
But the project would require more than just adding a big engine; it would take a complete redesign of the car’s systems and components to handle the extra power and deliver a balanced ride.
At Porsche’s Weissach development center, an expert team led by Michael Mönig got to work. They overhauled the suspension system, equipping it with high-performance components to improve handling and control.
The brakes from the 500 SL were also added, giving the 500 E the stopping power it needed.
Due to the large size of the differential needed to handle the V8 engine’s power, Porsche engineers had to modify the car’s rear seating arrangement, turning it into a four-seater as there was no longer room for a middle seat in the back.
Initially, Porsche hand-built the first four prototypes of the 500 E from standard W124 E-Class sedans. Once these prototypes were complete, production shifted to Porsche’s Building 1 in Stuttgart, which was empty at the time and ideal for setting up the assembly line for this unique vehicle.
Porsche was more than happy to take on this work. Facing a financial crisis, the company saw this project as a lifeline—an opportunity to keep their production lines active and bring in much-needed revenue.
The partnership was a win-win for both companies. For Mercedes, the 500 E offered a “halo” model that would showcase their engineering prowess and compete with BMW’s M5.
For Porsche, the project provided critical financial support at a time when they were struggling due to decreased exports and a dip in production.
The 500 E, with its unassuming looks and powerful heart, soon gained a reputation as one of the ultimate sleeper cars—a vehicle that looked like a regular family sedan but had the power and precision of a performance car.
It could go from 0 to 60 mph in just over six seconds, and its handling was as impressive as its straight-line speed. Decades later, the 500 E remains a sought-after classic, known for its blend of sophistication and performance.
The legacy of the Mercedes-Benz 500 E stands as a testament to the value of collaboration and the unexpected ways that two rivals can work together to produce something truly remarkable. The car not only showcased Mercedes’ ambition to compete at the highest levels but also helped Porsche weather a challenging financial period.
Today, the 500 E is celebrated by enthusiasts around the world as one of the finest “sleepers” ever created—a car that looks like any other Mercedes sedan but hides a thrilling driving experience beneath its understated exterior.
Mercedes-Benz 500 E The ’90s Super Sedan with Porsche Precision
The Mercedes-Benz 500 E is an icon in the automotive world. Created in the early 1990s, it broke all expectations for a sedan by combining luxury and high performance in a way that had rarely been seen before.
The 500 E may look like a typical Mercedes E-Class, but it hides incredible power and engineering brilliance thanks to a unique partnership between Mercedes-Benz and Porsche.
In this, we’ll what made the 500 E so special, from its impressive specs to its unusual production process.
The Engine That Powered the Legend
At the heart of the Mercedes-Benz 500 E is a powerful 5.0-liter V8 four-valve engine sourced from the Mercedes 500 SL, one of Mercedes’ most well-regarded engines of the time.
This V8 masterpiece produces 322 horsepower and 354 lb-ft of torque, enough to launch the 500 E from 0 to 60 mph in just 5.5 seconds—an impressive feat for any car in the early ’90s, let alone a sedan.
The car’s top speed is electronically limited to 155 mph, which was more than enough for the autobahn and certainly enough to make it one of the fastest sedans of its era.
The engine was paired with a standard four-speed automatic transmission, which handled the power smoothly and complemented the car’s refined driving feel.
Beneath its quiet and classy exterior, this Mercedes had the heart of a sports car, making it an ideal “sleeper” car, or a vehicle that hides its performance capabilities behind a humble appearance.
A Complex Production Process
The 500 E’s production was anything but simple. Unlike most cars that are built in a single factory, the 500 E was a joint effort between Mercedes and Porsche that required the cars to travel between their facilities multiple times during assembly.
Porsche, known for its expertise in high-performance vehicles, was responsible for crucial parts of the build process, which added a special touch of Porsche engineering to the 500 E.
The production complexity had a lot to do with the unique design requirements of the 500 E. While the car was based on the Mercedes W124 E-Class, it was wider by 56 mm and sat 23 mm lower than the standard model.
This was achieved by using extended front wings crafted by Porsche, giving the 500 E a slightly more aggressive stance. This increase in width meant that the 500 E was actually too wide to fit through Mercedes’ assembly line in their main Sindelfingen plant.
Rather than spending huge sums to modify the factory, Mercedes chose to handle the more challenging parts of the build process at Porsche’s facilities, resulting in a true blend of Mercedes luxury and Porsche performance.
Understated but Powerful Design
On the outside, the 500 E looked like a standard E-Class with only subtle design cues hinting at its performance. While the car featured updated wings and a slightly different front bumper, most people wouldn’t guess that it packed a V8 engine capable of outpacing many sports cars.
This understated design was intentional, allowing the 500 E to blend into traffic without drawing attention. For car enthusiasts, this is part of what makes the 500 E so appealing—it’s a supercar hidden in plain sight.
Engineering Excellence in Every Detail
Beyond the powerful engine, Porsche and Mercedes engineers made many thoughtful adjustments to enhance the car’s performance. To improve weight distribution, they moved the battery from the engine bay to the right side of the trunk, helping the car handle better around corners. Even small changes, like modifying the headlights to create more airflow around the engine, were carefully considered to optimize performance.
The 500 E’s widened stance wasn’t just for show. The wider track helped improve stability, while the upgraded suspension and brakes gave it precise handling. With larger brakes from the Mercedes 500 SL, the car could stop as impressively as it accelerated. This engineering precision made the 500 E more than just a powerful car; it was also exceptionally well-balanced, combining the power of a sports car with the comfort and handling of a luxury sedan.
Porsche’s Lifeline
For Porsche, taking on the 500 E project was more than just a business deal. In the late 1980s, Porsche was facing significant financial challenges due to declining exports and a drop in production. Partnering with Mercedes on the 500 E gave Porsche an important source of revenue and kept their factory busy during difficult times. This collaboration was a lifeline that helped Porsche stay afloat and continue developing its own legendary sports cars.
For Mercedes, the partnership gave them a “halo” model—a car that showcased their engineering capabilities and helped them compete directly with BMW’s M5. The 500 E wasn’t just a powerful car; it was also a statement that Mercedes could produce a performance sedan that rivaled any other on the road.
The 500 E’s Lasting Legacy
Today, the Mercedes-Benz 500 E remains a sought-after classic, celebrated by car enthusiasts around the world. It’s considered one of the finest “sleeper” cars ever created, combining subtle design with a thrilling driving experience. In many ways, the 500 E set the stage for modern performance sedans, proving that a luxury car could also deliver serious speed and precision handling.
In the end, the 500 E is more than just a car. It represents a unique moment in automotive history when two competing giants came together to create something greater than either could have done alone. With Porsche’s engineering touch and Mercedes’ luxury expertise, the 500 E became a true icon of the ’90s and continues to inspire admiration to this day.
The Mercedes-Benz 500 E A High-Performance Icon Produced in Unprecedented Numbers
The Mercedes-Benz 500 E, a powerful and stylish sedan created in partnership with Porsche, is legendary for its performance and exclusivity.
Despite its complex production process, Mercedes-Benz and Porsche managed to produce more 500 E units than many would expect.
Between 1991 and 1995, a total of 10,479 units were built, making the 500 E not only one of the most iconic sedans of its time but also a car that reached a wide audience of luxury-performance enthusiasts.
In article, we’ll look at how this collaboration overcame the odds to produce the 500 E in such high numbers, and how it influenced future performance models.
A Complicated Production Process
Building the Mercedes-Benz 500 E was no simple task. With two companies involved and production split between multiple locations, the process was more complicated than typical car manufacturing.
Mercedes-Benz would supply the necessary body parts from its Sindelfingen plant and ship them to Porsche’s Zuffenhausen facility.
Porsche’s team would then assemble the car bodies and fit them with various performance parts they had developed. Once this initial assembly was complete, the bodies were sent back to Sindelfingen to be painted.
Finally, the painted bodies were returned to Porsche’s Rössle Bau plant in Zuffenhausen for final assembly and engine installation.
This entire process took 18 days for each vehicle. Given the complexity of these logistics, it’s impressive that Porsche managed to produce ten units daily in the beginning.
As global demand for the 500 E increased, Porsche ramped up production to twenty cars per day, a remarkable accomplishment considering the effort required for each unit.
More Than Just a Limited Edition
With such an intricate production process, it might seem like the 500 E would be a rare limited edition. However, Mercedes and Porsche produced a surprisingly high number of these cars. Between 1991 and 1995, a total of 10,479 units rolled off the line.
This production volume was much higher than expected for a car with such complex manufacturing requirements and showed just how popular the 500 E had become among drivers looking for a high-performance luxury sedan.
The 500 E officially went on sale in the spring of 1991, and by April 1995, production had ceased, totaling nearly 10,500 units.
This was an impressive achievement that reflected the model’s popularity and global demand, with drivers around the world drawn to the car’s blend of power, prestige, and understated style.
A Sedan with Porsche’s Touch
What made the 500 E stand out from other Mercedes-Benz sedans was Porsche’s involvement in its development and production.
This was no ordinary Mercedes it was a luxury sedan with the engineering expertise of Porsche behind it. Known for their high-performance sports cars, Porsche brought a unique touch to the 500 E, helping create a car that was as comfortable on the autobahn as it was on winding roads.
With its powerful 5.0-liter V8 engine, the 500 E could go from 0 to 60 mph in just 5.5 seconds and had an electronically limited top speed of 155 mph.
Beyond its engine, the 500 E had a wider track, upgraded suspension, and a four-speed automatic transmission, which combined to give it both speed and stability.
These attributes made the 500 E not only a powerful car but also a well-balanced one that was easy to drive daily, adding to its appeal.
Setting the Stage for Future High-Performance Mercedes Sedans
The 500 E’s success and popularity helped lay the foundation for Mercedes-Benz’s future performance sedans.
The 500 E was a trailblazer, paving the way for a series of high-performance models that would follow. In 1999, AMG—Mercedes-Benz’s high-performance division was officially incorporated into Daimler AG.
The AMG line would go on to produce the E55 AMG, a spiritual successor to the 500 E, which carried forward the legacy of combining luxury with high-powered performance in a sedan.
The legacy of the 500 E can be seen in today’s Mercedes-AMG sedans, which still emphasize a blend of luxury, comfort, and thrilling performance.
The car showed Mercedes-Benz that there was a strong demand for performance-focused sedans and inspired the company to continue producing models that offer the best of both worlds.
A Lasting Influence
The Mercedes-Benz 500 E remains a highly regarded classic in the automotive world, celebrated for its unique design, impressive performance, and the collaboration between two automotive giants.
Its production of nearly 10,500 units speaks to the car’s broad appeal and the success of Mercedes-Benz and Porsche’s partnership.
Today, the 500 E is a sought-after collectible, prized by enthusiasts for its blend of Porsche-engineered power and Mercedes-Benz luxury.
The story of the 500 E is not just about a carit’s about a unique moment in automotive history. Mercedes-Benz and Porsche proved that even with different approaches and identities, they could work together to create something truly remarkable. And for fans of the 500 E, this car remains a symbol of what can be achieved when luxury and performance come together in perfect harmony.
Buying a Mercedes-Benz 500 E Today A Classic Sedan with Hidden Costs
The Mercedes-Benz 500 E, and its later version, the E500, are true icons of the early ’90s.
Known for their Porsche-influenced engineering and understated performance, these cars continue to capture the attention of collectors and enthusiasts. If you’re considering buying a 500 E today, there are a few things to keep in mind.
While these cars offer incredible build quality and timeless appeal, they also come with specific maintenance needs and potential costs that any buyer should understand.
Here, we’ll look at what it takes to own a 500 E today, covering pricing, maintenance, and key points to check before you invest.
Pricing for a 500 E or E500
The Mercedes-Benz 500 E was originally a high-priced luxury car, with a new price of around $79,200. Today, prices vary significantly based on condition and mileage.
According to Hagerty, a well-maintained 1992 model costs around $41,100, while a 1994 version may fetch around $50,200. The rare 1995 Limited Edition model can go for as much as $55,300.
These prices reflect the car’s rising status as a classic, but some models can even sell for more depending on their history and mileage.
For example, a 1992 500 E with 79,000 miles sold on Bring a Trailer for $53,000, showing that demand for well-kept models remains high.
Interestingly, these prices have increased in recent years. There was a time when the 500 E could be found for as little as $6,000, but that’s now a distant memory.
The 500 E and E500 are increasingly seen as collector cars, pushing up their market value as fewer well-maintained examples remain available.
A 500 E Can Last But Needs Attention
One of the big draws of the 500 E is its durability. With proper maintenance, these cars can last well beyond 250,000 miles.
There are many examples of high-mileage 500 Es that are still going strong, which speaks to the car’s build quality and engineering.
Mercedes heritage sites highlight that it’s possible to find these models with mileage above 200,000, proving their resilience.
The 500 E’s maintenance costs aren’t excessive compared to other luxury cars of its age. According to RepairPal, the annual maintenance cost for a 500 E is around $905, compared to $932 for the more standard Mercedes-Benz 300E.
While this might not sound too steep, the key to managing costs is staying on top of regular maintenance, as neglected models can quickly become expensive to fix.
Why Some 500 Es Can Be Risky Buys
Not every 500 E on the market is in pristine condition. Over the years, many have been neglected or poorly maintained, turning them into “distressed used cars,” as Mercedesheritage.com puts it. Because these cars are complex and built to high standards, failing to keep up with maintenance can lead to serious (and costly) issues.
Essential systems such as suspension flex discs, accessory belt drives, and ABS brakes can wear out, and putting off repairs can make problems worse.
Hagerty also warns that delaying maintenance on these cars can be frustrating and lead to steep bills. While the car might look like a good deal at a low price, a neglected 500 E can turn into a money pit.
Any potential buyer should look for a model with a full maintenance history, or be prepared to invest in restoring it to its original condition.
Tips for Potential Buyers
If you’re seriously considering buying a 500 E, here are a few tips to ensure you make a good investment:
1. Check Maintenance Records: Look for a car with a documented history of regular maintenance. Cars without this may have hidden issues that will need immediate attention.
2. Budget for Repairs: Even a well-maintained 500 E will need occasional repairs. Make sure you have some budget set aside for ongoing maintenance.
3. Inspect High-Wear Parts: Areas such as the suspension, brakes, and engine accessories should be closely inspected. These parts tend to wear down over time, and replacements can be expensive.
4. Be Prepared for Classic Car Ownership: While the 500 E is more reliable than many classics, it still requires care. If you enjoy working on cars or have a reliable mechanic, this can be a satisfying car to own.
5. Consider Expert Opinions: Fans of high-performance cars, including celebrities like Rowan Atkinson, have owned and praised the 500 E. Getting insights from experienced owners can help you understand what to expect from the car.
A Lasting Legacy
For enthusiasts, the Mercedes-Benz 500 E offers the perfect blend of luxury, durability, and performance. With its Porsche engineering influence, it provides a unique experience behind the wheel that few sedans can match, even decades after it was first built.
This classic has stood the test of time, showing that some designs truly never age.
But owning a 500 E isn’t for everyone. If you’re willing to keep up with regular maintenance and can handle the occasional repair cost, the 500 E can be a rewarding car to own and drive.
It’s a car that not only holds its value but also brings a unique sense of history and craftsmanship to each journey. In the of classic cars, the 500 E is a reminder of an era when luxury and performance could coexist beautifully.
