The outmoded 4-cylinder E20 engine from the M102 series was replaced in 1992 by the Mercedes M111 E20. The main differences between the new 2.0-liter engine and its predecessor are a brand-new cast iron cylinder block, a new crankshaft, and a new connecting rod and piston group.

M102, M111 E18, M111 E20, M111 E22, M111 E23, M166, M254, M260, M264, M266, M270, M271, M274, and M282 are the R4 Mercedes engines.
The cylinder head of the M111 E20 engine has two camshafts and four valves per cylinder. Both electronic fuel injection systems and hydraulic lifters are accommodated in the design.
Specifications
| Production years | 1992-2004 |
| Displacement, cc | 1998 |
| Fuel system | injector |
| Power output, hp | 136 (M 111 E 20) 180 – 192 (M 111 E 20 ML) |
| Torque output, Nm | 190 (M 111 E 20) 250 – 270 (M 111 E 20 ML) |
| Cylinder block | cast iron R4 |
| Block head | aluminum 16v |
| Cylinder bore, mm | 89.9 |
| Piston stroke, mm | 78.7 |
| Compression ratio | 9.6 – 10.4 (M 111 E 20) 8.5 (M 111 E 20 ML) |
| Features | no |
| Hydraulic lifters | yes |
| Timing drive | chain |
| Phase regulator | at the intake |
| Turbocharging | no (M 111 E 20) kompressor (M 111 E 20 ML) |
| Recommended engine oil | 5W-40 |
| Engine oil capacity, liter | 5.5 |
| Fuel type | petrol |
| Euro standards | EURO 2/3 |
| Fuel consumption, L/100 km (for Mercedes C200 1999) — city — highway — combined |
11.1 6.3 8.4 |
| Engine lifespan, km | ~420 000 |
| Weight, kg | 167 |
Disadvantages of the M111 E20 engine
Above all, the number of grease leaks increases with mileage and will cause you problems.
Fuel consumption rises in the event that the mass air flow sensor malfunctions.
The engine’s water pump nearly always begins to leak after 100,000 kilometers.
Piston skirts frequently wear out or the exhaust cracks after 100 to 200 thousand kilometers.
The timing chain drive or oil pump already needs maintenance after 200–250 thousand kilometers.
