1995 Mercedes-Benz C-Class: A new Electronic Traction System applied brakes to either drive wheel if slippage is noted, transferring more power to the opposite wheel. ETS replaced an automatic-locking differential on the C220's option list. Acceleration Slip Control, a more advanced system that also employed throttle control, remained optional on the C280. This year, it gained a dashboard switch that permitted turning off the throttle-control portion, leaving only the braking function. A high-performance, limited-production C36 sedan debuted in spring of 1995 with a dual-cam 3.6-liter 6-cylinder engine that made 268 horsepower. The C36 model also got a firmer sport suspension, 17-inch wheels and tires, and color-keyed exterior trim.

1996 Mercedes-Benz C-Class: Except for a few new standard features, little changed for the third season of the Mercedes-Benz entry-level sedan.

1997 Mercedes-Benz C-Class: A base C230 model with a 2.3-liter 4-cylinder engine replaced the C220. Horsepower rose only slightly, but torque grew from 155 to 162 pound-feet. A new 5-speed automatic transmission replaced the 4-speed unit, with adaptive electronic control that modifies shift action to match the operator's driving style. The airbag system now includes a front-seat occupant detection sensor, which deactivates the passenger-side airbag if it detects a weight of less than 26 pounds on the seat.

1998 Mercedes-Benz C-Class: The C-Class gets a host of revisions for 1998. Gone is the inline 6-cylinder in the C280, replaced by a V6 engine of the same displacement and horsepower rating. Also new is a high-performance model called the C43. It is powered by a 302-horsepower V8. Other changes include revised styling and a new "Smart-Key" anti-theft ignition system.

1999 Mercedes-Benz C-Class: Changes included a new standard engine for the base model, standard traction control, and a new sport handling package on C230 models. The base engine was a supercharged version of the old and sported an additional 39 horsepower.

2000 Mercedes-Benz C-Class: Automatic transmissions gained Touch Shift manual-shifting capability, with a separate gate. A telescoping steering column and antiskid control moved from optional to standard.