Following the merger between Daimler-Motoren-Gesellschaft and Benz&Cie. , the new management faced the task of creating a standardized and modernized product range.
The two companies had different opinions about the direction the company should go. While the DMG went for the luxury market, the Benz&Cie tried to go to popular products. In 1924, after different debates, the larger supercharged engines were dropped in favor of an inline six-cylinder with a two-liter displacement. The initial target-price was reduced several times until it became less than half of the initial RM 15.000. After the management reached a conclusion, there were two lines produced: the Stuttgart 200 with a 2.0-liter engine and the Stuttgart 260 with a 2.6-liter displacement, which was placed upper on the scale.
The Stuttgart 260 was available in the same range of variants as the two-liter model. The "standard" version of the higher-displacement model was additionally equipped with the honeycomb radiator, the two-seater sports car being available only in the basic version. At the end of 1929, it was obvious that the 260 model, even if it was more expensive, had a better success on the market with 3640 vehicles sold considerably more than 2000 units of the Stuttgart 200.
The Convertible A featured a bigger trunk in the back. It was available with two or four seats. The car was designed to feature a swing axle in the rear, but due to cost-cutting requirements, the series model featured the same solid axle in the back. The leaf-spring suspension was carried over from the tourer version.