Responding to growing demand for high-end vehicles, the interiors of

Also, I feel that in C there is an ambiguity because it is not very clear "what" are so luxurious: interiors or newest models.

The original sentence begins with a modifier "Responding to growing demand for high-end vehicles,"
but this modifier has no logical subject within the main clause. The subject of the sentence should be
the people or organizations that respond to this growing demand.
Moreover, the pronoun "they" is ambiguous, as it could grammatically refer either to the interiors or to
the models. We know that the intended antecedent of "they" is the “cars”, so we need to find a choice
that makes this intention clear. Finally, the modifier "that are so luxurious" should be placed
immediately after "interiors," not "models"; otherwise, an alternative phrasing without this modifier
should be found.

(A) This choice is incorrect as it repeats the original sentence.

(B) The choice repeats the original modifier error: the subject of the modifier is not present in the
sentence.

(C) This choice repeats the original pronoun error: "they" is ambiguous and could refer to either
interiors or models. Also, the modifier "that are so luxurious" is placed incorrectly.

(D) This choice repeats both the original modifier error and the original pronoun error. Also, "interior"
should be plural.

(E) CORRECT. This choice correctly introduces "auto makers" as the subject of the sentence and
also corrects the pronoun error by replacing "they" with "these cars." Note that the use of the
synonym "cars" avoids both the awkward repetition of "models" and the ambiguity of the pronoun
"they."

regarding choice C.
"that" in "that are so.." refers to "interiors" . this is a little tricky because "interiors" is far from "that are..." but this is acceptable in gmat land.

"they" in "they sell.." refers to " that" in "that are..." because these are two subjects of two clauses. this is also acceptale on gmat land.

in the end, "they" is "interiors" and the sentence is "the interiors sell twice the price of last year's model".
this is not logical.

Responding to growing demand for high-end vehicles, the interiors of the newest models are so luxurious that they sell for nearly twice the price of last year's models.

First split - the interiors didn't respond, the automakers did. Eliminate A,B and D
A. the interiors of the newest models are so luxurious that they sell
B. the interiors of the newest models are so luxurious that the cars are sold
D. the interior of the newest models are so luxurious that they are sold

Second, "they" could logically refer to the interiors themselves - they are so luxurious that the interiors sell. This wouldn't make sense since we see that they sell "for nearly twice the price of last year's model's" won't make sense.
C. auto makers have installed interiors in the newest models that are so luxurious that they sell

So, E is correct as It clears this issue.
E. auto makers have installed such luxurious interiors in the newest models that these cars sell

choice c is also wrong because it shows a definition of the car but dose not show a effect of luxuriousness . the "that relative " means that which kind of car is explained. this is not intended meaning. this is flagrant meaning mistake.

Main Issue:

Modifiers

A. the interiors of the newest models are so luxurious that they sell - Wrong: Modifier 2) Pronoun ambiguity

B. the interiors of the newest models are so luxurious that the cars are sold - Wrong: Modifier

C. auto makers have installed interiors in the newest models that are so luxurious that they sell - Wrong: Modifier 2) Pronoun ambiguity

D. the interior of the newest models are so luxurious that they are sold - Wrong: Modifier

E. auto makers have installed such luxurious interiors in the newest models that these cars sell - Correct

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