Yes, your owners manual says ATF. Your owners manual was also printed in 1980, before ATF fluid blends moved in the direction that they have moved. They had no way of telling what ATF would be in the future when they printed the manual.

Everyone,

I am telling you that modern ATF is great for your A/T but not your power steering. I have seen printed in several places in the last 6 or 8 years that ATF, particularly Mercon has evolved to a point that it is not good for the seals in your power steering. I have lost the seal in the power steering pump on my 240D by running this stuff.

Power Steering fluid only costs about $2.98 at Auto Zone. That is twice the price of ATF. But the power steering pumps for most MB's cost at least $300.

I have switched to the relatively expensive power steering fluid in all my vehicles and have had no leaks or problems since.

If you insist on using ATF anyway, do yourself a favor and seek out some Type A.

Good luck,