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In the year 1972 Mercedes-Benz and the Austrian automobile-manufacturer Steyr-Daimler-Puch started the development of a new offroader. For this work the GFG - the Gelaendefahrzeug Gesellschaft mbH - was founded, of which both firms each owned 50%. The new fourwheeler, which was initially named H2 (Haflinger 2), was to be for military and civilian use. Also many parts were to be taken from the existing Mercedes-Benz cars and vans, to lower the costs. At the beginning the GFG hoped to get an order from the German army, which was looking for a follow-up of the DKW Munga. In 1976 than the German army decided to buy the VW Iltis, but the Shah of Persia , who had been a major shareholder of Daimler-Benz, ordered 20.000 units for his military. However, this task was canceled after a changeover of power of the local government again. Instead of this, the German Federal Border Police and the Argentine army ordered the first vehicles which secured further development of the offroader now christened as the "G". Orders from the Norwegian and Indonesian military followed. In February 1979, Mercedes-Benz presented the G-model on the 'Paul Ricard' race track in southern France to the public. The first models were the 230 G, with a 4-cylinder engine which had an optional 90 or 105 hp, the 280 GE with 6 cylinders and 156 hp, the 240 GD with the 4-cylinder diesel and 72 hp and the the 300 GD which would achieve 88 hp with its 5 cylinders. All engines originated from the W123 line of products and were installed in all three body versions: the short one with 3 doors, the long with 5 doors and the open G with 2 doors. For the military, there was also an open G with the long wheelbase which was built with both 2 and 4 doors. In November 1980 the model range was complemented with a closed van, that could be ordered both with the long wheelbase and with the short wheelbase. Differential locks were offered on the accessory list of the van precisely as in the case of the other models for that front and the rear axle just as a power-steering. In May 1982 the 230 G was fitted with electronic fuel injection that increased the power of the engine from 105 to 125 hp. Consequently, the 230 G became the 230 GE. Furthermore, the interior receives its first facelift when elements of the limousine line W123 are inserted in a increased manner. As from May of 1985, the G-convertible is available upon request with a handy collapsible hood. Due to inadequate demand, the production of the short closed van is stopped in June 1985. Also the standard equipment of the G is increased. In spring of 1986, the G-version with chassis and cab debuts. It has the same wheelbase as the long G: 2850 mm. Excluded from this body version is the 280 GE. Without a doubt, the most important innovation in 1987 is the introduction of the 250 GD with a 5-cylinder diesel engine and 84 hp. It is delivered as standard with a 5-speed manual transmission and replaces the 240 GD. The extra equipment lists are extended by power-windows, electrically operated antenna and double window blind for the baggage compartment. In this year, the wheelbase of the G chassis with cab is also extended from 2850 mm to 3120 mm. Mercedes-Benz starts with a new line of products in 1990 : the W463. In this series, comfort and excellent offroad qualities unite themselves. 3 body variants and 4 engines are offered. Simultaneously with the introduction of the 'comfort' line, the production of the 280 GE and the 300 GD is stopped. Through this measure, it clarifies into which direction the two lines of products are to go in future: The W460-, and later the W461 line of products should operate the commercial market and for the others, the far more expensive W463 line. Already in September 1991 Mercedes-Benz presented the 350 GD turbodiesel with standard automatic transmission to the public. This was the engine that was also available in the Mercedes S-class, which achieved 136 hp in the G and replaced the 3.0 liter diesel engine. In April of 1992, the new line of W461 products is introduced. The production of the W460 line of products is stopped only one month later.
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