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The Deep Dive: New Luxury, Small Packages

Germans embrace small front-wheel-drive sedans.Even as Americans embrace more expensive compact cars, they remain immune to the charms of the premium hatchbacks that sell so well in Europe. In the United States -- and, just as important, in China -- the sedan remains king. That's why the German premium brands are working on front-wheel-drive compacts with four doors and proper trunks.

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