The four-wheel-drive system was developed in conjunction with Steyr-Daimler-Puch (currently Magna Steyr), who manufactured the Mercedes-Benz G-Class in Austria.

Nearly all Mercedes-Benz vehicles that feature this system are paired with an automatic transmission as the default transmission. The first design of 4Matic system was introduced in 1987 on the W124 series (E Class) saloons (four-door) and estate (station wagon) cars. It was available with the 2.6 L and 3.0 L 6-cylinder petrol (gasoline) and diesel engines.