The Death of the Station Wagon has been Greatly Exaggerated

When I was a kid, my father purchased a 1977 Oldsmobile Vista Cruiser station wagon. It was painted a bright mandarin orange over tan vinyl, and it looked like it was 30 feet long. It was his vehicular pride and joy. We drove that thing all over the country with a Sears Roebuck roof cargo box that, together with the wagon, combined for a drag coefficient equivalent to a refrigerator in the upright position. Those wagons were never cool, and generations after shunned them. Can you blame them?

For decades, and well before SUVs and crossovers became a thing, the station wagon was the practical choice for families across the country. With roomy cargo space, car-like handling, and a long roof ideal for road trips and family hauls, it reigned as the go-to vehicle for suburban life. But by the late 1990s and early 2000s, the wagon fell victim to the rising tide of SUVs and crossovers—vehicles that offered a more rugged image, higher ride height, all-wheel drive (in some cases), and, arguably, more versatility. Automakers pivoted, and wagons were declared all but extinct in the U.S. due to poor sales figures.

Gobs of wagons were killed off over the past few decades, but here are a few of the noteworthy casualties: the Buick Roadmaster, Saturn L Series, Suzuki Forenza, Toyota Camry Wagon, Toyota Corolla Wagon, Dodge Magnum, Mazda 6 Sport Wagon, Saab 9-3 and 9-5 SportCombi, Lexus IS300 SportCross, Volvo V70, Subaru Impreza Sport Wagon, BMW 3- and 5-Series Touring, Audi allroad quattro, Volkswagen Golf SportWagen, Subaru Impreza Wagon, Acura TSX Sport Wagon, Buick Regal TourX, Audi allroad, and the Porsche Panamera Sport Turismo.

There are ones we miss, but others should remain just a memory. The questions remain: who are the current players, and what does the field look like in 2025? Is the new Subaru Outback no longer in the same segment? On the flip side, what does the introduction of some new big wa-”guns”, specifically the BMW M5 Touring and the Mercedes-AMG E 53 Hybrid Wagon, say about the current and future states of the station wagon in America? There seem to be mixed reports of the station wagon’s demise.

The “Legacy” of the iconic Subaru Outback wagon is now in question

For 2026, Subaru—the last mainstream holdout in the American wagon space—is reimagining its Outback, long-touted as a rugged and tall wagon, by pushing it further into SUV territory. Falling more in line with its Forester and Ascent stablemates, it seems the Outback is shedding its wagon leanings. Whatever you think about the redesign, the Subie wagon look we know and love has been killed off in favor of a taller, boxier, and more SUV-like appearance. It seems even the ruggedized Wilderness trim wasn’t SUV-ish enough.

For some background on the Outback, about 30 years ago, Subaru shook things up by introducing the Outback (then known as the Legacy Outback), which kickstarted the off-road wagon trend. No, the AMC Eagle can’t claim that one. Based on the original Legacy wagon, the Outback stood out with its lifted stance and chunky fender flares, inspiring future rivals like the Audi Allroad and Volvo XC70. The Outback’s lifted suspension, standard all-wheel drive, and outdoorsy marketing helped it straddle the line between wagon and crossover, making it an ideal choice for buyers who wanted SUV utility in a car-like package. The numbers didn’t lie. It has been one of the brand’s best-selling vehicles for years.

Over the years, it only got more capable, eventually offering 9.5 inches of ground clearance in the aforementioned Wilderness version. For 2026, Subaru is giving the seventh-gen Outback a full redesign, as they no longer need to use the same platform as the Legacy sedan, which is ending production with the 2025 model year. As polarizing as the new Outback’s design is, there’s no question that America loves SUVs, but it really feels like another nail in the coffin of the station wagon segment.

This design shift reflects what’s happening in the U.S. automotive landscape. Crossovers and SUVs sell in huge numbers, accounting for 80% of new vehicle sales in the U.S. As “independent” as Subaru seems, they also have to bow to the realities of the market. The Outback’s new look may disappoint us wagon purists, but it ensures that the vehicle stays competitive while not resting on its laurels.

Enter the Super Wagons: BMW M5 Touring and Mercedes-AMG E 53 Hybrid

Just as Subaru takes a step back from traditional wagon design, two elite German automakers are bringing high-performance wagons to the U.S. market with insane horsepower, hybrid technology, and serious luxury. The last BMW M5 Touring from 2007-2010 never came stateside, but the brand recently confirmed what enthusiasts have hoped for: the BMW M5 Touring will be coming to the U.S. While we’ve seen Touring models in Europe, American buyers have traditionally been shut out of this high-performance variant.

The E61 M5 Touring housed a naturally-aspirated 507-hp V10 paired to a seven-speed SMG single-clutch automated manual. The 2025 BMW M5 Touring has a plug-in hybrid powertrain producing over 700 horsepower, making it one of the fastest vehicles on the road. It also comes with all-wheel drive, adaptive suspension, and some of the most aggressive styling ever seen on a station wagon. More good news comes in the form of excellent comfort for occupants (as long as you’re not doing a slalom course), great cargo space, and sedan-like handling. So, why a wagon? Well, buyers of premium performance vehicles are different from more mainstream car buyers.

View the 4 images of this gallery on the original article

Surprisingly, BMW brought the M5 Touring here because it axed its 3- and 5-Series wagons years ago in favor of SUVs and less practical fastback SUVs. BMW’s decision to produce the M5 Touring as a more practical high-performance option is a sign that wagons in high-performance guise are attractive to customers who want it all. By combining the M5’s power and performance with space for family, cargo, and maybe even some track tires, BMW is making a statement. Initially, BMW’s original plan was to build more M5 sedans than wagons, but the Touring’s popularity resulted in a 50/50 wagon-to-sedan production. This may be a sign that wagons are making a comeback.

Another German rocket sled is on its way is the Mercedes-AMG E 53 Hybrid Wagon. While not as potent as the Bimmer, the E 53 Hybrid Wagon churns out a not insubstantial 577 horsepower from its turbocharged inline-six plus an electric motor mated to a 9-speed automatic gearbox. Power can be briefly bumped to 604 hp in the optional Race Start mode. The hybrid sled can sprint from zero to 60 mph in 3.8 seconds and can be optioned with an electronically controlled limited-slip rear differential. Like the M5 Touring, there’s ample space, tech, and luxury, coupled with all-wheel drive, an advanced suspension system, and hybrid power.

View the 6 images of this gallery on the original article

Mercedes has been building the E-Class wagon since the 1970s, and it shows no signs of slowing down. Despite the wane of wagons, Mercedes continued to make a case not to give up on the E Class. Both the BMW and the Mercedes can tip their hats to the Audi RS6 Avant, another German high-performance wagon that paved the way for them and competes with them as well.

Final thoughts

The wagon segment in America isn’t dead yet, and these two premium entrants are infusing much-needed adrenaline back into it. Many buyers are growing tired of the sameness of crossovers, which often prioritize image over driving experience. Wagons offer an alternative with sharper handling, better fuel efficiency, and sleeker aesthetics, without sacrificing utility. The BMW M5 Touring and the Mercedes-AMG E 53 Hybrid Wagon are proof of this. Electric and hybrid drivetrains can provide instant torque, making wagons quicker and more dynamic than ever before.

Also consider the current electric Kia EV6 wagon-style electric car and the Toyota Crown Signia, as well as the upcoming and very wagon-like Kia K4 Hatchback. Automakers might be onto something here, a new trend that could very well show favor to wagons. You won’t see wagons take the form of wood-paneled land barges again, though. It’s time for a new breed of wagons, and the future looks bright.