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A new chapter in off-road models started in September 1989 when a completely reworked model range with the in-house code 463 series was launched. The main objectives of the facelift were compliance with ever increasing customer demands for greater comfort and a move away from austere utility vehicle to comfortable, multi-purpose car. As a result, the interior design of the new generation was based much more closely on that of passenger cars. This impression was reinforced by the understated style of the updated front section that was painted in body colour.

As well as the facelift, technical modifications were also carried out. The most notable was the modification to the drive train to increase ride comfort. Instead of manually selectable four-wheel drive, it now had permanent four-wheel drive and differential locks as standard. Customers buying off-road vehicles could now also benefit from the ABS anti-lock braking system that had proved highly effective in passenger-car models, and a version that could be disengaged became available. The engine range was also restructured. While the 2.5-litre diesel engine, the 2.3-litre injection engine and the 2.0-litre variant for Italy were already familiar components of the 460 series, and updated versions of them were now in use, two state-of-the-art, six-cylinder engines were deployed in off-road vehicles for the first time. They were the 3.0-litre OM 603 diesel engine and the M 103, which had petrol injection and the same 3.0-litre capacity. The petrol engines were fitted with a closed-loop emission control system as standard.

In line with the applications advertised, the series 463 off-road vehicles were no longer available as panel vans. Customers could choose from short-wheelbase open pick-ups, now known as Cabriolets, and two versions of the Station Wagon. The 460 series with all body variants was kept in the sales range for professional, commercial users and the tried-and-tested engine range was also retained, with the exception of the 2.8-litre petrol engine.

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