They were just selling to a price point. In any market some people want the high end and others want value. The cars have to be differentiated in some way or the high end folks wont' be willing to pay. The 2006 3 series BMW is going to have a 325 and 330, both with 3 liter motors, the 330 tuned for more horsepower, and yet there will be about a $6k price difference. Silly, but some people just can't stand the thought of not having the better one - and are will to pay for it. In 1994 MB lowered the price of the E320 about $7500 down to $42,500, below where the 2.8 was in 1993. The 2.8 just got squeezed out in the process. Unfortunately it was the end of 124 MB tex except for diesels and wagons.