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as far as I know, W123s were all named by displacement (280CE, etc)
I believe the 300D badge was continued for the W124 because of the popularity of the 300D badge on the W123... do Americans really want the replacement for the 300D to be the 250D? Likely the 300E was just a continuation of this. Someone (clearly not an older 123/124 MB owner) referred to my car as an "old 300."
BMW seems to have done this recently as well, with the 328 and 335 both having 3.0l engines, and the 550/750 having a 4.8.
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1992 300D 2.5T 249k - Parked with a bad transmission
1981 300SD 142k - Daily driver
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