How Warm can a 4.5L engine from a Mercedes-Benz 280SE W108, BJ1972 US version?

I have been the owner of a 72 Mercedes 280SE W108 4.5L US version for a few weeks, with a 3-speed automatic and at my exit today the following happened to me: After driving the car really warm (so 130-160 km/s drove even 20 minutes, engine temperatures were up to 175 on the highway), the Benz had problems with the engine when I stopped in a jam.. the engine temperatures have dramatically increased to 250.. The engine went out of complete and Red lamp has burned! so I parked the car in the highway emergency lane until the engine has become cooler, even 20 minutes, then engine started (Red lamp was still on, but it went out later on the engine run)! I then drove so 80-120Km/s with refueling pause 500Km without any problems!! now I drive also Innerstadt and stay the engine temperatures in circle of 175! is that normal? If you have any tips for me, I would be very grateful. Greeting, Zimo