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.


Follow Motor Authority on Facebook, Twitter, and Google+.