The main problem with the 4Matic is internal leaks in the transfer case causing hydraulic fluid to mix with the transfer case oil. This will over time ruin the transfer case. (big $$$)

4Matic was available here in Europe with M103 2.6 and 3.0 engines and OM603 3.0 diesel with and without turbo. There was never a 4/5-cylinder engine offered with 4Matic in the 124 chassis.

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'95 E36T AMG (124.092)
'98 E200T (210.235)
'00 E430 4Matic (210.283)