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Consumers like SUVs. They are convenient, easy to get in and out of, flexible for hauling large items, many can pull trailers, offer good visibility for the driver, and do well in the snow.




They are also heavily subsidized by the US government in the form of relaxed regulations. The profit margins are higher which is why car companies push them. In their current ICE form they also benefit from massive government subsidies of the Oil companies. If you took those away it is unlikely that the convenience would be worth the additional cost.

Wagons can do all of that too



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