<P> A vehicle often considered the first true SUV was the 1940's Willys Jeep Station Wagon designed by Brooks Stevens . It was first sold in 1946 and offered 4 wheel drive in 1949 . It was produced until 1981 . </P> <P> The corporate average fuel economy (CAFE) standard was ratified in the 1970s to regulate the fuel economy of passenger vehicles . Car manufacturers evaded the regulation by selling SUVs as work vehicles . The popularity of SUV increased among urban drivers in the last 25 years, and particularly in the last decade . Consequently, modern SUVs are available with luxury vehicle features, and some crossover models adopt lower ride heights to accommodate on - road driving . </P> <P> Keith Bradsher explained the rise of the SUV with American Motors' (AMC) lobbying the United States Environmental Protection Agency (EPA) for a waiver of the United States Clean Air Act . The EPA subsequently designated AMC's compact Cherokee as a "light truck", and the company marketed the vehicle to everyday drivers . AMC's effort to affect rulemaking changing the official definition of their new model then led to the SUV boom when other auto makers marketed their own models in response to the Cherokee taking sales from their regular cars . </P> <P> SUVs became popular in the United States, Canada, India, and Australia in the 1990s and early - 2000s . U.S. automakers could enjoy profit margins of $10,000 per SUV, while losing a few hundred dollars on a compact car . For example, the Ford Excursion could net the company $18,000, while they could not break even with the Ford Focus unless the buyer chose options, leading Detroit's big three automakers to focus on SUVs over small cars . </P>

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