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Two words: Market saturation.
Why? Because it's not just a BMW thang. It's a German luxury carmaker thang.
Bottom line: A company can make only so many 'luxury' items before it starts to water down its own brand to be 'luxury' no longer.
(BTW: Mercedes is not as affected by this precisely because of those cargo vans -- not to mention that it's dabbled in the non-luxury car market for many years. BMW and Audi have been almost exclusively luxury carmakers for some 30 years -- BMW since the early 1980s, and Audi since the 5000 series of the mid-1980s)
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