VW analyses Phaeton failure, reveals new details about next-gen model

Posted Mon Feb 18 2008 7:55 AM by Alex Kaufmann

By all accounts, the Phaeton limo has been a major flop for Volkswagen and nowhere has it performed more badly than in the U.S. where the decision to drop the car came just two years after its launch. Since going on sale back in 2003, VW America managed to find a home for just 3,354 cars in total and last year's tally was the worst yet with just 17 sales. Despite the poor result VW is considering bringing the next-generation Phaeton to the U.S. but first officials need to analyze what went wrong with the original car.

Some of the problems, as described by VW America CEO Stefan Jacoby, include initial quality issues, overpricing and lackluster styling. Prices for the car started at about $70,000 and went all the way up to $100,000 for the flagship W12 model. Speaking with Automotive News, Jacoby said a good price for the new model would be about $55,000 and described the new car as being smaller than the current model so as to not compete with its Audi A8 cousin. Jacoby wasn’t willing to give a release date for the car but earlier reports claim it will be launched in Europe by 2010.

To further differentiate the new Phaeton from its rivals, officials are also considering adding a diesel model to the lineup but no final decision has been made. The only thing that’s certain is that if it does arrive the car will still carry the Phaeton name. "The Phaeton is the name of Volkswagen's luxury. We are proud of this name, and this name fits this car," Jacoby explained.

Reader Comments

Mon Feb 18 2008 10:13 AM
V10 says

its a vw costing 70000 us$ and thats what went wrong
Mon Feb 18 2008 10:19 AM
Raptor says

And that's the problem. Majority of people se VW badge and turn away. A shame if you ask me. I would take this car over 7 series or S class any day.
Mon Feb 18 2008 11:38 AM
HECTOR says

I'm with you Raptor. The Phaeton was a very good looking car, much better than either of those two you mentioned.

I wonder how many people balked at buying a Lexus when it first came out. Today I think Lexus sells more cars than MB or BMW.

Maybe the cheaper Phaeton will do better.
Mon Feb 18 2008 11:42 AM
rickybobby says

yes
they should make it smaller so it doesn't compete with the A8
Now it can compete with the A6
very smart
Tue Feb 19 2008 5:40 AM
VW Rocks says

I think the biggest mistake VW made is that it released an ultra luxury car without first succeeding in upper mid luxury car (e.g BMW 5 sereis, Merc E class, Audi A6). So the difference between the Passat and the Phaeton was huge, and that's perhaps was the mistake. Now, going back and change the strategy and make a newer model to compete with the likes of A6 is a good move.
Mon Mar 3 2008 1:55 AM
Miles says

It's my understanding, that the Phaeton was effectively a productionised development experient as percursor for the Bentley Continential GT. They never expected to make money off it, per se.
Thu Apr 17 2008 2:21 PM
kim says

I now a german guy who drives a 5.0 V10 pheaton.
The car has many returning small problems.... replacement of tyre pressure system 3 times in 2 year, locking system of trunk 4 times in 2 years and so on! Lot's of days of repairs by dealer and replacement car is not so ok in this type of car.

MotorAuthority