It's velour inside. I have the same in my 83 300TDt. It's an extra-expensive option in europe if you don't want cloth, or mb-tex. Can't speak for euro tastes for leather.

However it does not wear as well as mb-tex/cloth and most importantly if you've any pets that have hair that might get in the car, the velour is a MAGNET for their hair. Which then gets trapped in the fibres and is a royal pain to vacuum (with effort!) out. Also holds dust etc really well...