Mercedes introduces 260D, new for 1936
In 1936, after years of engine development work, Mercedes-Benz unveiled the 260D, the world’s first diesel passenger car, at the Berlin Automobile Show.

1936 Mercedes-Benz 260D
The Hanomag Rekord Diesel Typ D 19A was also introduced at the show but it wasn’t immediately available for delivery.
Based on the 200/230 model, the 260 used a 2.6-liter inline four-cylinder engine producing 45 hp (33 kW) at 3200 rpm. It initially had a three-speed manual transmission and was capable of speeds of up to 90 km/h.

1939 Mercedes-Benz 260D
Approximately 2000 of the 260D were built through 1940. The 260D’s fuel economy was impressive: it burned 9 l/100 km (26 mpg U.S.) compared to its gasoline counterpart with 13 l/ 100 km (18 mpg U.S.). At the time, diesel fuel was half the price of gasoline.
The 1939 260D was updated with a four-speed transmission and offered in four body styles including six-seat Pullman sedan and Landaulet, four- or five-seat sedan, and four-or five-seat Cabriolet. It was capable of speeds of up to 94 km/h. Production was halted in 1940.