Thank you guys for your answers!
So it was the name for the chassis, after all... but what's with the 400E & 500E? They should've been 300E 4.0 and 5.0. Probably they were left as is, because 400 & 500 obviously higher numbers and suggest superiority to the 300s, I guess.
But why on earth was it different for W126s? I mean they were sold at the same time and there never was a 500SEL 4.2 etc,
Not very consistent.
Anyway, classes clarified this and the naming is the same now all over the world I guess...
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previous:
1977 W123 200D - the slowest car I've ever driven, 500k+ miles when sold
1992 W124 250D - 257k miles when sold
2002 VW Polo 1.4

- 100k miles when sold
current:
1987 W124 300D Turbo - 320k miles