The Phaeton limo may have been a major flop for Volkswagen but officials are keen to see the launch of a successor, especially in the U.S. where it could pose as a technical and environmental flagship for the carmaker. The original model was priced similarly to BMWs and Audis but it wore a humble VW badge, and there was nothing particularly exciting or innovative about the car to warrant its premium price tag, except for being ridiculously over-engineered. As for the new model, it could potentially feature VW’s advanced turbodiesel technology and utilize Audi’s new modular platform to create a true premium flagship.

The information comes from VW’s U.S. Chief Stefan Jacoby, who told reporters from Automotive News that if VW wants to be bigger in the U.S. it will have to offer a broader range of vehicles to meet the “needs and wants of a diverse American customer universe.” One of the vehicles near the top of Jacoby’s list is a new Phaeton. Just last month he told reporters at a news conference that it was a mistake to end Phaeton sales in North America.

Although he didn’t provide any solid details about the next-gen model, previous execs have hinted that it will arrive without many luxury features and only in the shorter wheelbase. The previous model sold for more than $70,000 and only managed 2,814 sales over the entire period it was on offer in the States.

VW's strategy for the US also involves the introduction of a coupe-sedan style model called the Passat CC as well as a new model to sit between the Passat CC and the Phaeton. The Passat CC was unveiled at the Detroit Auto Show and you can read up on it by clicking here.