How Porsche Built the Last Great Mercedes episode artwork

EPISODE · Apr 14, 2026 · 16 MIN

How Porsche Built the Last Great Mercedes

from The Car Nerd with Jason Hassett · host Hassett Studios

THE MERCEDES THAT PORSCHE SECRETLY BUILT: THE 500E STORYWhen BMW dropped the E34 M5, it rewrote the rules for performance sedans, leaving Mercedes-Benz with nothing to answer it with. While Mercedes knew their W124 chassis could handle serious power, their engineering bandwidth was entirely consumed by the over-budget and behind-schedule W140 S-Class. They needed a weapon to fight back, but they simply didn't have the people, the space, or the time to build one.By the late 1980s, just ten miles down the road, Porsche was staring into the financial abyss. Crippled by a weak US dollar and collapsing sales, their production lines were running on fumes. When Mercedes picked up the phone to contract out the development of a flagship killer, it wasn't just a business deal; it was a lifeline. What followed was one of the most secretive and logistically insane collaborations in automotive history, resulting in a sedan that traveled between two rival companies four separate times before it was ever finished.In this deep dive, we explore The 500E Masterpiece:The S-Class Distraction: Why Mercedes was losing the arms race to BMW's hand-built inline-six, and how the crown-jewel S-Class drained the resources needed to build a factory response to independent tuners like AMG.The Widebody Dilemma: How engineering the W124 to accept a 322-horsepower, 5.0-liter M119 V8 required widening the chassis by two inches—making the 500E physically too wide to fit down Mercedes' own Sindelfingen assembly line.The 18-Day Dance: The absurd, four-trip assembly process that sent every single car back and forth between Mercedes and Porsche’s historic Reutter building, all to disguise a sub-six-second sports car as a conservative executive sedan.The Legacy Lifeline: How "Project 2758" kept Porsche's Zuffenhausen workforce employed during their darkest chapter, literally saving the company from ruin and paving the way for their next major collaboration: the Audi RS2 Avant.The 500E wasn't just a wolf in sheep's clothing; it is widely considered the last Mercedes-Benz built to cost-no-object standards before the accountants took the wheel. The greatest executive sedan ever made was born because Mercedes was desperate, Porsche was broke, and pride took a backseat to perfection. Is the 500E the last true Mercedes-Benz? Let’s settle it in the comments.Subscribe for more deep dives into automotive history and future tech.Follow me: http://x.com/jayhassettMy New Book: https://www.amazon.com/dp/B0GP9TKPBH (History Written by Losers)#Mercedes500E #Porsche #AutomotiveHistory #TheCarNerd #W124 #CarTech

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How Porsche Built the Last Great Mercedes

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This episode was published on April 14, 2026.

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THE MERCEDES THAT PORSCHE SECRETLY BUILT: THE 500E STORYWhen BMW dropped the E34 M5, it rewrote the rules for performance sedans, leaving Mercedes-Benz with nothing to answer it with. While Mercedes knew their W124 chassis could handle serious...

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