Designed to be a durable, reliable, and rugged off-roader, the G-wagen utilizes two solid axles. It has a climbing ability of 80% as well as the ability to negotiate slopes of 54 degrees without rolling over. Moreover, the approach angle was 36 degrees, the departure angle 27 degrees, and running ground clearance was 210 mm. The G also had three fully locking differentials, one of the few vehicles sold to have such a feature at that time (and indeed today), along with the Jeep Wrangler Rubicon, Toyota Land Cruiser 80-series, Puch Pinzgauer and Mercedes-Benz Unimog.

The production of the W460 ended in August 1991. It was replaced by the all but identical W461. Initially, choices of engine were limited to the four-cylinder 230GE petrol and five-cylinder 290GD diesel engine. The W460 convertible version was omitted. In 1997, the W461 sported a slightly updated interior with better seats, changed door panels, and an updated dash. The W461 became available only as 290GD turbo diesel with four-speed automatic transmission. The petrol engine was dropped. Disc brakes all around became standard, and the bell-housing of the front axle was changed to accommodate larger reduction gears. The exterior and other mechanics changed little, not even the model badge which kept indicating 290GD.

Also in the beginning of the 90’s, today’s W463 version was developed and marketed parallel to the W461 as a more modern and sophisticated version. The main technical difference between the W460/461 and W463 model, apart from the choice of engines, gearboxes and suspension, is the layout of the drive train. While the W463 offers full-time 4WD, the W460/461 is basically rear wheel drive with manual 4WD. These models did not have a center differential and thus no center differential locks. Only front and rear locking differentials are needed to obtain a fully locked drive train. The front lockers were not fitted as standard, but as a factory-fitted option. The differential locks are manually operated with hydraulic levers next to the transfer case selector handle. In the 463 version, lockers are engaged electronically.

Other differences between W460/461 and W463 models are mainly cosmetic. The G280 CDI EDITION PUR is the latest W461 available for civilian buyers. This version is essentially a civilian version of the military W461 and will come with a 24V starter motor and a walk-on bonnet. Like the 461 rang, the 563 range was also refreshed again in 1997, including the introduction of a power-topped convertible and two new engines, the 2.9l Turbo Diesel and the V6-powered G320.  

Mercedes-Benz initially did not sell the model in the United States, but by means of "casual importation" grey-market in the mid-1980s, importers sold some G-Wagens, which had been modified to meet the specifications by the US DOT, at about $135,000.

In February 2009, Magna Steyr, the operating unit of Magna International, announced that it signed an agreement with Daimler AG to extend the production of the Mercedes-Benz G-Class at Magna Steyr in Graz, Austria until 2015 t an annual production of 4,000 to 6,000 units. Besides the production, the further development of the G-Class by Mercedes-Benz is also located in Graz, Austria since 1992.  

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