The 2.3-liter M102 E23 engine, which was by now completely out of date, was replaced by the Mercedes M111 E23 engine in 1995. Similar to the M111 E20, the new M111 E23 has a compact cast-iron cylinder block, but it has a cylinder diameter that is 1 mm larger and a different crankshaft with a piston stroke that is 88.4 mm larger than the E20.

M102, M111, M133, M139, M166, M200, M254, M260, M264, M266, M270, M271, M274, and M282 are the R4 Mercedes engines.
With two camshafts, sixteen valves, hydraulic lifters, and electronic fuel injection, the cylinder head is identical to that of the two-liter power unit. A compressor version utilizing an Eaton M62 supercharger was also manufactured concurrently with the aspirated. A chain with a resource of roughly 250 thousand kilometers was used in the timing drive. Engine management system Bosch ME 2.1.
The engine, designated G23D, is still manufactured and installed on SsangYong.
Specifications
| Production years | since 1995 |
| Displacement, cc | 2295 |
| Fuel system | injector |
| Power output, hp | 143 – 150 (M 111 E 23) 193 (M 111 E 23 ML) |
| Torque output, Nm | 210 – 220 (M 111 E 23) 280 (M 111 E 23 ML) |
| Cylinder block | cast iron R4 |
| Block head | aluminum 16v |
| Cylinder bore, mm | 90.9 |
| Piston stroke, mm | 88.4 |
| Compression ratio | 10.4 (M 111 E 23) 8.8 (M 111 E 23 ML) |
| Features | no |
| Hydraulic lifters | yes |
| Timing drive | chain |
| Phase regulator | at the intake |
| Turbocharging | no (M 111 E 23) kompressor (M 111 E 23 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 C230 Kompressor W202) — city — highway — combined |
10.0 6.4 8.3 |
| Engine lifespan, km | ~450 000 |
| Weight, kg | 167 |
Disadvantages of the M111 E23 engine
Most importantly, the number of grease leaks increases with mileage, and they will cause you problems.
If the mass air flow sensor malfunctions, fuel consumption rises.
Almost invariably, the engine’s water pump begins to leak after 100,000 miles.
Piston skirts frequently deteriorate or the exhaust cracks after 100 to 200 thousand kilometers.
The oil pump or timing chain drive already needs maintenance after 200–250 thousand kilometers.
