The 1.7 liter four cylinder rear wheel-drive Mercedes-Benz 170 V (W136) was introduced in 1936 to replace the 1.7 liter six-cylinder Mercedes-Benz 170 (W15). Despite their similar engine capacities, the new car's side-valve M136 was more powerful. The manual transmission was four- speed synchromesh (having been upgraded from synchromesh in only the top two ratios in 1940). Claimed maximum power was 38 PS (28 kW; 37 hp) at 3,400 RPM at an initial compression ratio of 6:1. Mileage was 10 litres per 100 kilometres (28 mpg-imp; 24 mpg-US). The engine was attached using just two mountings and set the standard for smoothness for four-cylinder motors.

Engine power - 38 hp at 3,200 rev/min
Drive – rear-axle
Length: 427 cm
Weight: 1,150 kg
Speed: 108 km /h
Fuel consumption: about 9.5 to 11.5 L
Gradeability: 35 grades
Total during the period of 1935-1942: about 71,000 pieces