M-B and BMW build most of their SUV's in the US, in non-union factories in the south. With lower labor costs and lower factory-to-dealership costs, they're cheaper to build and deliver than a German-made station wagon would be. Muffy the soccer mom loves SUV's, and is willing to pay more for an SUV than for a station wagon. So, the station wagon is effectively dead in the US.
Frau Putzer's X3 has more cabin room than my larger 535i, due to the greater cabin height and the seating being higher off the floor. I can put a six-pack ice chest in the floor behind the front seats in the X3, but not in the 535i.
The emissions regulations and emission systems warranty costs for diesels in the US is why the German Big Three abruptly stopped selling diesels here. Land Rover dropped their diesels recently in the US. I think the only SUV with a diesel now is a Jeep.
Finally, there's the Law of Diminishing returns. As MPG gets higher, improving it further accomplishes less. Going from 20 MPG to 30 MPG saves more fuel (167 gallons / 10k miles) than going from 30 MPG to 40 MPG (83 gallons / 10k miles).
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