The Case Against Wagons: Why Automakers Are Losing Interest

Hyundai’s European boss, Xavier Martinet, has expressed that the company is not investing in new wagons due to low customer interest and higher profit margins from SUVs. This sentiment is echoed by Mercedes’ Head of Exterior Design, Robert Lešnik, who stated that ‘nobody is buying them in America’ and the ‘Chinese don’t understand them.’ While the wagon segment is declining, Europe remains a stronghold for long-roof models, with various compact and midsize estate cars available. However, with SUVs generating higher profit margins, automakers are allocating resources to these more profitable projects. Despite this, some brands like Kia and Audi remain committed to the wagon segment, with Audi even planning to bring back the A6 Allroad to the US in 2027. The future of wagons looks bleak, but there will always be a group of buyers who prefer estates for their benefits.