Following the merger between Daimler-Motoren-Gesellschaft and Benz&Cie, the new board faced a dilemma if they should build expensive or affordable cars, and the board went for the latter.
One of the first products produced by the newly formed company was the Typ Stuttgart lineup, which consisted of different types of vehicles, all based on the same chassis. Since the decision was to create expensive automobiles, a sports car was a must.
The Typ 260 Sportwagen was based on the short wheelbase version of the W11's chassis. Its look was different than on its sibling, sporting a roadster bodywork with a long hood, cut-out doors, and a short rear end. Like other Mercedes-Benz cars from that era, the 260 Sportwagen featured a front fascia with a retracted radiator behind the chassis' ends and a horizontal chromed bar that supported the headlights.
In the cockpit, the carmaker installed a pair of bucket seats designed mostly for comfort, albeit the driving position was quite low, typical for a sports car. After all, the same carmaker already had produced the SSK years before, and it knew how to build a proper sports car. A retractable canvas roof was available, but since there were no side windows, it served mostly for sun protection and less for rain.
Under the long hood, Mercedes-Benz installed the same 2.6-liter inline-six with side valves that produced a healthy 50 horsepower. The powerplant was paired with a three-speed manual gearbox and sent its twisting force to the rear wheels.