Using the mass-produced cab of the Mercedes-Benz LK (Leichte Klasse, light class) introduced in 1983, which had already been transplanted into other Freightliner trucks like the FLC112 in 1985 (with addition of a bonnet to the European cab-over cab structure), Freightliner began development on its first medium-duty truck, essentially serving as a replacement for the Brazilian-built Mercedes-Benz L-Series trucks sold in the United States.

Freightliner had been owned by Daimler-Benz since 1981, and tooling up for the production of a crash-tested steel cab is among the most expensive items in truck development.

In place of the FLC112 (and most other Freightliners) named for its BBC (bumper to back of cab length), the initial models of the Business Class were identified by size range.

It was the only truck of the FL series that continued to use its BBC in its model designation throughout its production life.

Additionally, the Business Class was also produced as a cutaway cab for non-school bus bodies.