Mercedes-Benz introduced the 320 model in 1937 at the International Motor and Motorcycle Show in Berlin, replacing the 290 lineup.
The German carmaker understood that the market wanted more power from their vehicles, and that's what it offered. Still, since there were few to complain about the chassis, it just slightly modified the one from the Typ 290, and that's one of the reasons why the Typ 320 was available with a choice of two wheelbases. The Limousine, closed version, was offered exclusively with the longer one.
Unlike the Tourenwagen version, the Limousine featured not only a new design but a new direction. Mercedes-Benz understood that the time of flat panels and angular shapes was gone and tried to create curved lines and body panels. Thus, the Typ 320 Limousin featured a V-shaped radiator grille and a narrow engine compartment covered with an arched hood. Thanks to the new, slimmer bumpers, the car was lighter than the Typ 290 and showed better proportions. From its profile, the three-window greenhouse ended with a vertical drop at the back.
Inside, the carmaker offered room for five adults and an option for seats or a bench at the front. Since the doors were hinged on the B-pillar, it was easier for the driver to open them for the rear passengers. The car was fitted with cloth upholstery or leather, depending on the options. A significant improvement for the car was adding a coolant-temperature gauge. The carmaker mounted it on the instrument panel next to the speedometer and tachometer.
Under the hood, Mercedes-Benz installed the same 3.2-liter inline-six as on the rest of the range. It paired it with a four-speed manual, and the fourth gear had a 1:1 gear ratio, which made the engine run 26% lower than the previous version at the same speed. That made the Typ 32 W142 IV faster and with better fuel-efficiency.