<P> The G - class was developed as a military vehicle from a suggestion by the Shah of Iran (at the time a significant Mercedes shareholder) to Mercedes and offered as a civilian version in 1979 . In this role it is sometimes referred to as the "Wolf". The Peugeot P4 was a variant made under licence in France with a Peugeot engine . The first military in the world to use it was the Argentine Army (Ejército Argentino) beginning in 1981 with the military model 461 . </P> <P> It was not available from Mercedes - Benz in the United States until 2002, although this was preceded by a grey - market where even basic models commanded six - figure prices in the 1990s . It was launched in 2002 as the Mercedes - Benz G500 with a V - 8 petrol engine and achieved 3,114 sales that year . This eventually tapered down to less than 1,000 models sold in some years . However, in the 2010s, sales began to increase again surpassing the 3,000 mark in 2014 and in 2015, it sold more than during its launch year; with 3,616 sold that year . In 2016 this increased to 3950 in the United States . Canada saw a similar increase, which, although is a smaller market compared to the United States; saw sales increase from 127 in 2012 to over 400 in 2016 . </P> <P> Development started in 1972, focusing on off - road abilities and maximum safety and comfort; with a cooperative agreement between Daimler - Benz and Steyr - Daimler - Puch in Graz, Austria . Mercedes - Benz engineers in Stuttgart were in charge of design and testing, while the team in Graz developed the production plans . The first wooden model was presented to Daimler - Benz management in 1973, with the first drivable prototype beginning various testing including German coalfields, the Sahara Desert, and the Arctic Circle in 1974 . Construction commenced on a new production facility in Graz, where the new cross-country vehicle would be assembled nearly entirely by hand in 1975, with production of the "G Model" beginning in Graz in 1979 . In 1980, the Vatican took delivery of a specially made G - Wagen outfitted with a clear thermoplastic top which served as the Popemobile . The "Papa G" later took up permanent residence at the Mercedes - Benz Museum in Stuttgart, Germany . </P> <P> The first major refinements were introduced in 1981, including an automatic transmission, air conditioning, an auxiliary fuel tank, protective headlamp grilles and a cable winch . Fuel injection became available in 1982, when the 230 GE was introduced in Turin, along with more comfortable and supportive front seats, auxiliary heating, wider tires and fender flares . For 1985, differential locks, central door locking and a tachometer became standard and by 1986 over 50,000 G Models had been produced . </P>

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