<P> Since then, smaller wagons have been sold in the U.S. as less expensive alternatives to SUVs and minivans . Domestic wagons also remained in the Ford, Mercury, and Saturn lines until 2004 when the bodies began a phase - out, replaced by car - based crossover SUVs and minivans designed to look like station wagons . </P> <P> Subaru has been a notable exception to the rule, offering full - size Legacy and Outback station wagon models in the United States and worldwide consistently from 1989 to the present . These models continue to be produced at the Subaru of Indiana plant in Lafayette . </P> <P> The last subcompact station wagon produced in the United States and Canada was the 1992 Toyota Corolla . Compact station wagons have been declining since the 2000s . Ford dropped the Ford Focus ZXW wagon after its 2007 model year, and Subaru replaced the Subaru Impreza wagon with a 5 - door hatchback model . Volvo announced that they will withdraw their compact station wagon, the Volvo V50, from the U.S market in 2012 due to poor sales figures . In Europe the V50 remains popular . The VW Golf Sportwagen is Volkswagen's mid-2015 attempt to rectify the absence of a subcompact wagon from any manufacturer in the North American market . </P> <P> European luxury carmakers such as Audi, BMW, and Mercedes - Benz continued to offer wagons in their North American lineup, using the labels "Avant", "Touring", and "Estate" instead of wagon . However, these wagons had fewer trim and powertrain levels than their sedan counterparts, for instance the wagon styles of high - performance trims such as the BMW M5 and Audi RS6 were never imported to North America . The Mercedes - Benz E63 AMG in Estate trim is the sole performance wagon offered in the U.S. market . The Mercedes - Benz W204 wagon was not offered in the United States and Canada unlike the previous generation . The BMW 5 Series Touring was dropped from BMW's North American lineup after the conclusion of the E60 generation, due to slow sales in the United States with only 400 wagons sold in 2009 . Due to the popularity of SUVs in North America, these European manufacturers have been supplanting their wagons with car - based crossovers such as the BMW Sports Activity Series, the Audi Q5, and Mercedes - Benz M - Class, with these models offering a wider range of options and engines than wagons . </P>

Where does the term station wagon come from