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I have had the fake leather (whatever they call it) on my MB for 7 years now and it has held up very well. I had no problem ordering it on the new X5. It is lower maintenance and nobody has ever noticed it wasn't real leather to my knowledge. I thought it was a real downgrade when I bought it because all my previous cars were leather, but it wasn't.
I think this is mostly a European anti-leather environmentalist thing and the US market is different. My impression is European carmakers have put a lot of effort into this.
The synthetic leather does not heat up like old school vinyl melt-your-legs-off did. I live in FL and it has been fine. Everything still gets hot, but I haven't noticed any real differences from previous cars.
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