I think before they changed the model designations, the letters were designators for vehicle options.
I think the S in SEL was for Sedan, E for Fuel injection, and L for long wheelbase.
The E in the 190E/300E was for fuel injection and did not designate the vehicle class itself.
In 1994 I believe is when they changed it to actually designate Vehicle Model.
C for The Small Benz, E for the mid size, S for the large size.
When they start getting into SLK, SL, CL, CLK, etc its to differentiate models. and thats why the designation was changed.
People instantly know what size a 3 series, 5 series, or 7 seires BMW is. Before mercedes changed its model designations, it was not easy to determine.
Alon
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'92 300CE - Sold
2004 C240 - 744 - C7 Wheels - Android Radio
2002 C320 - 816 - Sport Wagon
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