The W124, R129 and W140/C140 were the last overengineered Mercedes-Benz cars.
I would say Mercedes downfall in quality started in the mid-nineties with the C-Class W202. While it was a reliable car, the first C-Class scored only two stars in the first ever EuroNCAP crash-test in 1997. Quite a fiasco for a legendary brand that always valued the safety in their models.
The V-Class was severely slated because of its poor ride and handling, the cheap interior, the uncomfortable seats, but mostly because why Mercedes should be bothered making a big MPV, when they are traditionally a luxury car maker?
Then in 1997 the A-Class W168 came along. It was vastly criticized for its (again) cheap interior, coarse engines and to make matters worse, it proved to be dynamically dodgy when it failed miserably at the elk-test.
In the same year, Mercedes introduced the American built ML-Class W163. The ML was criticized for its (again) cheap, lumpen dynamics and rather impractical rear-seats arrangement. Mercedes admitted the ML-Class was a rival for the Ford Explorer and Chevrolet Blazer. But a Mercedes going after these lowly American SUVs? Hmm...that does not sound the right thing to do.
Plainly then, there was something (very) wrong with Mercedes-Benz.
And just when you thought things couldn't get any worse, Schrempp bought Chrysler and that's exactly when Mercedes quality started to slide into oblivion.
I hope and even though I'm not a religious man, I pray that Mercedes fix all this mess done by Schrempp and his scum of sleazy bean-counters and now left in Zetsche's hands.
The road ahead to improve the reliability is long and tough. But hey! They are Mercedes-Benz. They are the brand that invented the car in the first place, don't forget that.
