Originally Posted by w123fanman

Everything I have read recently says to NOT use ATF in the power steering system. It will work but additives in the ATF will cause premature wear to the steering box. This is why W123 and earlier steering gears wear out so quickly. I have a 190D with 320k miles with much less steering play than a 240D with 140K miles. Use Mercedes spec power steering fluid.

Using ATF short term is fine, just don't use it long term.

Originally Posted by Zulfiqar

MB did fill these car steerings with ATF, dexron II to be exact. No issue in using dexron III on there. Be wary that it will permanently tint the system red.

You can use generic PSF, but it will be thicker to pump when cold. Orielly's sell a PSF which is close to ATF viscosity - its called masterpro PSF.

The steering oil you buy from mercedes benz is actually ATF DII. its also sold by LubroMoly in 1 liter packaging, Its most probably undyed ATF.