CONFIRMED: Phaeton pulled from U.S.
The news that broke yesterday on German website Speed Heads and The German Car Blog has now been confirmed by numerous media outlets. Only 686 Phaetons have been sold in the U.S., which is a far cry from the 10,000 units/year VW was hoping to move. It's no secret that current VW Chieft Executive Bernd Pischetsrieder believed the Phaeton to be the wrong high-end product for the U.S. market, but ex-Chief Executive Ferdinand Piech got his way. The axing of the Phaeton here in the states is a good swing of the sword that will help VW become a more targeted brand as it tries to increase sales of its brand new models introduced this year. The German automaker should be putting its resources into the collaborative effort with Chrysler on a new minivan. Despite what we said at the time news of the deal broke, automakers seem to be sensing a resurgence in the minivan market is right around the corner. Just ask Hyundai.
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Reader Comments (Page 1 of 1)
JohnJohn 11:07PM (12/18/2005)
goodbye and good riddance!
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Rick 11:07PM (12/18/2005)
I want to get a used one.
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Swat Lax 19 11:07PM (12/18/2005)
So, does this decision increase the depreciation rate of these cars, since a failed business project doesn't have much cache? If so, I think the Phaeton could be the best used deal in a year or so, even better than a 300C SRT-8.
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Poe 11:07PM (12/18/2005)
CONFIRMED: You guys need to keep up better. Reuters released this yesterday before 10:00 AM.
http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh33563_2005-11-14_14-57-55_l14738497_newsml
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Steve 11:07PM (12/18/2005)
It may even be a good collector car somewhere down the road . . . not!!!!
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sirAQUAMAN64 11:07PM (12/18/2005)
And also get your freakin' story right.
686 Phaetons were sold this model year, Oct '05 CYTD (down from 1,433 CTYD in '04, mostly b/c they're special-order because of the no-discounting policy and stiff exchange rate and it's hard enough to find the things in dealers anymore).
Thousands have been sold thus far in total.
And if you think rebadged Chrysler minivans are what Volkswagen needs, you don't understand the value and buying demographics for the brand.
Eliminating a Phaeton won't result in a dropping of price on the Jetta and Passat - they're unrelated. The Golf is still on the same time schedule. A Polo is still years away.
Get with it, people.
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sirAQUAMAN64 11:07PM (12/18/2005)
Oh, and for those who aren't aware, the $10,000 discounts ended when '04 ended.
And they don't bother promoting it here because they sell for much more in Europe than they do here and we are too badge-conscious, plus there's the exchange factor too. Doesn't make business sense.
And the projected sales were 5,000 units a year... which was cut to 3,000 units a year early on. I think in '04 Phaeton neared 1,900 or so.
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Brian 11:07PM (12/18/2005)
I never understood the Phaeton anyways. What was wrong with having Audi as the upscale premium brand and VW the lower priced mass marked name? Why throw in the Phaeton and mess that all up?
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s 11:07PM (12/18/2005)
WOW someone is really pissed. I'm not mentioning any names but I think it's related to water.
The car was a waste of money. Damn thing had it's own personal factory built for the Phateon and the Phateon only. Waste!!!
Plus, why would ANYONE buy a Phateon when you can get an Audi A8 which is basically the same thing mechanically and in exterior design.
Also gas mileage on this car really "sucks"!
LOL
GO HONDA!
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neil 11:07PM (12/18/2005)
Another one bite's the dust...
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sirAQUAMAN64 11:07PM (12/18/2005)
Hehe, thanks 'S' - you caught onto that nicely.
The tone of the AutoBlog article expresses more personal opinion than pure fact, which I found unacceptable.
I just don't understand the big controversy over and disdain for this car - honestly I don't, and especially how people think it's disappearance will somehow magically make the stars align with VW overnight becoming the 'mainstream' cheaper brand they believe it should be in America. How Polos will suddenly be rushed onto boats bound for the US. It's not going to happen anytime soon.
The Phaeton is a brilliant car. It's really too bad people didn't give it more chance, and that brand perceptions die hard.
I'll be sure to make the Dresden facility a sight to see when I visit Europe early in the new year.
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DJ 11:07PM (12/18/2005)
Not sure how this could have any additional negative to resale values that are already at the lowest percentage of almost ANY vehicle. The 2004 models with 15,000 miles or fewer are selling for between 38 and 45 percent of sticker, with the W12's fairing the worst. There are a lot of V8's out there for less than $40K. Next to the 2004 XJ8, this could be the best used car value in the Luxury market. And so long as the Audi A8 is around, getting it serviced will not be an issue.
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Jonathan 11:07PM (12/18/2005)
It's interesting that only one comment here mentions that the Phaeton is a very, very nice car, regardless of how poorly marketing, pricing, dealer service, factory capacity optimization, VW executive ego oversight and general usefulness were conducted.
Yes it diverted resources from other programs. Yes it was a huge investment and ultimately is probably very embarrassing for VW as a company. But I think it is so great that VW took a crazy gamble and brought an giant, expensive, ego-driven fairly unattractive boat-car to market. Weird mistakes are one of the things that make the auto industry so wonderful - Edsels, Airflows and all.
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John B 11:07PM (12/18/2005)
The main issue right now with VW isn't price (at least in Canada) but quality or perceived quality. We have all seen VW savaged here and elsewhere. I happened to look at a Consumers Reports auto issue last week and the news for VW was bleak indeed. I certainly would not consider buying one.
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Tucker 11:07PM (12/18/2005)
This is really funny, because I saw a Phaeton on the road for the very first time a couple days ago. I remember thinking, "wow, maybe interest in the Phaeton is on the rise..."
Guess I was wrong.
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2Suave 11:07PM (12/18/2005)
Good car but silly. Why would anyone buy a $70,000 "People's Car?" Hard to believe how ridiculous the Phaeton was from a marketing viewpoint.
VW is lost.
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Bryan 11:07PM (12/18/2005)
A couple of people have mentioned the factory in Dresden... it is a sight to see, indeed. I toured it last year, very nice. You aren't supposed to take photos inside, though. At the end of the tour they have a simulator you can drive, it's pretty fun.
It's funny, before taking the tour and seeing the car up close, all of us were saying how we couldn't see spending that much for a VW. After sitting in one, we had reconsidered (not that any of us could actually afford one, however).
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Ed 11:07PM (12/18/2005)
Bad idea, nice vehicle. I don't think anyone in this thread would turn down the chance to own one, cost aside. Stop talking about it like it's a 1992 Taurus.
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asurroca 11:07PM (12/18/2005)
Agreed, Ed.
The Phaeton is a well-done car with an exceptionally badly-timed market introduction. Had the Phaeton been released before the US Dollar's devaluation against the Euro, the V8 would've started under $50k, pitting the Phaeton against easier targets such as the Cadillac DTS (then DeVille), Infiniti Q45, and Acura RL.
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Inthebiz 11:07PM (12/18/2005)
I manage a VW dealership. I have posted the reasons many times why the Phaeton was doomed to failure. But the car, save a few over-engineered systems, was incredible. Great drive, lots of room and the best interior I've ever sat in. The factory will belt out Bentleys for the forseeable future. Also, VW is making the sheetmetal for the new Porsche Panamerica. Porsche bought a 21% stake in VW. I can assure you that factory in Dresden will not be underutilized for long. Lastly, Aquaman64, the current incentive on an 05 Phaeton is 10k. That is inside info you can count on. And for our resale buddies, the 48 month residual on a leased Phaeton is 28%!! That makes for a ridiculously high payment, which by the way most BMW's, MB's, Audis and Lexus's are purchased today. Your typical high end German car has a 48 to 51% reisdual after 48 months. But a used Phaeton can and will be a steal at Manheim Auto Auction.
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