• February 18 - March 6: The 770 "Super Mercedes" (W 150) with a 7.7 liter, 8-cylinder supercharged in-line engine producing 155/230 hp is presented at the International Automobile and Motorcycle Exhibition in Berlin. This completely redesigned model has a tubular frame, front transverse link suspension with coil springs and a De-Dion rear axle (referred to internally as a "parallel wheel axle").
• July: Since production first started, more than 40,000 170 V vehicles have been sold.

From 1938, the 170 H has double-acting shock absorbers and the instrument panel is provided with two dials, one for water temperature and the other for oil temperature.

In February the overdrive transmission was replaced by an all-synchromesh four-speed transmission with direct-drive fourth gear. At the same time the 260 D, like the 230, was provided with wider rims and tyres of size 6.00‑16, or 6.50‑16 (on the six-/seven‑seater versions). The rear axle is now fitted with double-acting hydraulic shock absorbers. Another important innovation is the electrically heated glow plug, which made it easier to start the engine from cold. Last but not least, the 1938 model year also saw the introduction of new, rugged-looking bumpers to replace the dainty design of 1936/37.

The short-wheelbase W 143 having failed to establish itself on the market as well as expected, production was discontinued after just 12 months in December 1937. Nevertheless, the 230 N still featured in the price list of February 1938.

260 D Pullman-Limousine
(Motor und Sport, October 1938)

230 Cabriolet B

230 / 260 D Cabriolet B

230 / 260 D Cabriolet D

320 Pullman-Limousine

320 Cabriolet D

320 Cabrolet A

320 Cabriolet B

320 Stromlinien-Innenlenker

320 Cabriolet D

320 Cabriolet D

320 n Kombinations-Coupé

320 Pullman_cabriolet F

In February the Convertible C was dropped. At the same time, the International Motor and Motorcycle Show in Berlin saw the launch of a modified variant of the Special Roadster based on the standard chassis with design modifications mainly to the front wings and rear section. From February 1938, the other two-/three-seater body versions ceased to be available on the chassis with rear-set engine.
 

(Motor und Sport, October 1938)

540 K Special Roadster
(Motor und Sport, October 1938)

540 K Sport-Roadster kurz

The new, majestic "Grand Mercedes" was unvealed at the 1938 International Motor and Motorcycle Show in Berlin. Unlike its predecessor, the W 07 with its decidedly conservative chassis and suspension, the W 150 boasts every state-of-the-art advance that had been made in the field of automotive engineering. A box section frame of thin-walled oval tubes, provides high stiffness and low weight. The front suspension is independent on coil springs. The rear axle is a de Dion axle. The new "Grand Mercedes" offers excellent ride comfort together with outstanding handling.
In contrast to its predecessor, the W 07, the W 150 is available exclusively with the supercharged engine. The engine design of the predecessor is basically retained but with higher compression ratio and increased engine speed, the power output rises from 200 hp to 230 hp. Power transfer to the rear axle is by means of a five-speed transmission.
All W 150 bodies are custom-built at the Sindelfingen plant by the "special vehicle production facility", which is separate from the series production line. These bodies are manufactured to individual customer specification.

The "Big Mercedes" is equipped with a 7.6-liter engine that delivers 230 hp. This is the open touring car.
(Motor und Sport, October 1938)

770 Tourenwagen

770 Pullman-Limousine

770 Cabriolet D

Kübelwagen version for the Wehrmacht, which is built from November in three body variants: "Kfz 1" (four-seater, four-door Kübelwagen), "Kfz 2" (three-seater, three-door Kübelwagen as radio car) and "Kfz 3" (four-seater, four-door Kübelwagen with rear insert case).

Kfz. 2

From 1938, the 320 is also built in the form of a bucket seat Kübelwagen for the Wehrmacht, initially - like its predecessor - with a short wheelbase and later with the long 3300 mm wheelbase.

400 V

400 V

Other Victories:

1st GP Tripoli (Lang)
2nd GP Tripoli (Von Brauchitsch)
3rd GP Tripoli (Caracciola)
1st Coppa Ciano (Lang)
1st Coppa Acerbo (Caracciola)
2nd GP United Kingdom (Lang)
3rd GP United Kingdom (Seaman)

• January 28: On the Frankfurt - Darmstadt Reichsautobahn Rudolf Caracciola reaches a speed of 432.7 km/h for the kilometer with flying start. This is the fastest speed ever achieved on a normal public road.
• 15 May: Mercedes-Benz scores a triple victory at the Tripoli Grand Prix with the new W 154 3-litre formula racing cars: Hermann Lang wins the race, with Manfred von Brauchitsch and Rudolf Caracciola placing second and third.
• 3 July: Triple victory at the French Grand Prix in Reims
• July 24: Richard Seaman wins the German Grand Prix on the Nürburgring circuit at an average speed of 129.8 km/h.
• 21 August: Triple triumph at the Swiss Grand Prix at the Bremgarten circuit near Bern.
• 7 August: Hermann Lang wins the Coppa Ciano in Livorno, Italy, in the best track and lap time.
• 14 August: Rudolf Caracciola posts another win for Mercedes-Benz in the Coppa Acerbo in Pescara, Italy.
• September: Work starts on the new 1.5 liter racing car (W 165) for the 1939 Tripoli Grand Prix. The vehicle is completed within 8 months.
• Fall: Rudolf Caracciola becomes European Champion for the third time in a Mercedes-Benz, repeating his triumphs of 1935 and 1937 and, in so doing, becoming the most successful racing driver of his time.
• W 154 racing cars constructed according to the new 3 liter formula clock up six victories in nine races: Tripoli Grand Prix, 1st and 2nd places (May 15) French Grand Prix, 1st, 2nd, and 3rd places (July 3) German Grand Prix, 1st and 2nd places (July 24) Coppa Ciano, Livorno, 1st place (August 7) Coppa Acerbo, Pescara, 1st place (August 14) Swiss Grand Prix, 1st, 2nd and 3rd places (August 21).

W 165

W 154

Caracciola at the wheel of the W 154.

Rudolf Caracciola in the Mercedes-Benz W154 at French GP, Reims (2nd).

the competition vehicles based on the W 153. These were two-seater open sports cars with in-house designations 230 SV and 230 S. The 2700 mm wheelbase was the same as in for the short 230 N version of 1937. Bodies of magnesium alloy and wings of sheet aluminium made them extremely light. They were successfully used in 1938 and 1939 in the then highly popular off-road events. While 33 units of the 230 SV were produced in 1938, 21 units of the 230 S were built in the following year, of which 19 were roadsters and two were two-door fastback sports saloons. The difference between the two versions lay in the engines. Whereas the 230 SV still had the M 143 with 2229 ccm displacement, the 230 S was powered by the M 153, which had been rebored to 2289 ccm. Both engine variants had a higher compression than in the respective standard-production units and also a slightly higher power output of 58 hp.

During vehicle winter testing in February 1938, at the very start of the new season, Daimler-Benz unveiled the 170 VS, a newly developed two-seater off-road sports model with a host of modifications compared with its predecessor 170 VR. Apart from its newly designed, significantly lighter body of magnesium alloy and aluminium, the new off-road sports car boasts a 1.9-litre engine. The sports engine with design code M 149 has cylinder dimensions of 80 x 95 mm and thus a shorter stroke and wider bore than the underlying 1.7‑litre unit. It produce a power output of 50 hp, with a dual-carburettor version delivering as much as 60 hp.
The 170 VS provided the basis for two further off-road sports: the 170 SV and 200 V. Both vehicles are powered by a rebored 2.0-litre variant of the M 149, the single-carburettor version producing 53 hp, while its dual-carburettor counterpart delivers 64 hp. In addition to its higher displacement and increased power output, the 170 SV has a reinforced suspension and off-road tyres.