One more time: VW Phaeton returning to U.S.?
Click image for hi-res gallery of the facelifted VW Phaeton
It appears that the VW Phaeton will make a return to the Unites States market, according to Volkswagen CEO Dr. Martin Winterkorn. In an interview with Financial Times Deutchland, he essentially stated that to be successful with a product, it has to be something sold worldwide. (We're paraphrasing from a Google Translation of the FTD article, so be advised that the wording may be off a bit.)
The other thing we took from the translated article is that the car earmarked for a return to the States is the "successor" to the Phaeton. That has us thinking that the facelifted car introduced at Geneva last week is not the one Winterkorn's talking about. The Phaeton story is well known by now; poorly marketed and just as poorly received by car shoppers, the VW super sedan is a beautiful, handbuilt machine that tanked thanks in large part to an idiotic campaign at the car's launch (remember the TV commercials where VW showed still photos of the car with the logos covered while a voiceover clown said things like, "No question...that's a BMW"?) and a price tag that was incongruous with what people were willing to pay for a Volkswagen. The 8-cylinder Phaeton stickered at over $64K, and a gargantuan $94K was the price set for the range-topping W12. For that kind of money, people could go shop at Audi (or BMW, or Mercedes), and that's likely what many of them did. The Phaeton was pulled from our market in 2005.
Assuming this actually happens, it'll be interesting to see what Volkswagen does to help make round two a success for the Phaeton. If any readers have a proper command of German and can better elucidate what the FTD article says, please chime in with your own comments. The Financial Times piece can be found here. If you don't read German, this will come in handy.
Thanks to all who sent tips.
[Source: FT Deutchland]
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Reader Comments (Page 1 of 2)
D 3:23AM (11/14/2008)
The problem is all marketing, and VW not wanting, or being able to, to step in on it's sister cars territory. The Phaeton as I see it is the most "budget-friendly" way of getting your hands on an Audi A8L, or the Bentley Continental GT (All Three are based on the same platform and have the W12 available.) For some, being seen in either other car is more a status symbol than the fact that all three perform almost identically.
This was VW's attempt at selling a car to someone older than 35, and I am young and still really like this car. Every time I see one driving i notice it and get a little jealous, and I personally think it stands out more than an A8L (and I am an avid Audi fan.).
I wish them the best of luck, cause I know if I needed a big German luxury sedan, and had 100k burning a hole in my pocket I'd pass by the Merc n Bimmer dealers and get this car just because it's different and brilliant, and so critics would think I was crazy.
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Bill 2:35PM (3/11/2007)
Seems this Winterkorn has a bigger ego and smaller brain than Piech.
First spouting off that VW will surpass Toyota in quality (HA!) and sales in the future and now bringing back the Phailedton to the US!
Those Germans are unbelieveable.
The arrogant, hard-headed super race is still alive.
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Mike 10:58AM (3/11/2007)
I don't understand, you have the A8 to sell VW why are you even making this stupid car? VW has moved as far up market as it can w/o moving in on Audi's territory. I'm all for VW's getting more sport configurations and luxury upgrades but this sedan is and always will be a poor choice for VW. I feel like MINI created a full size luxury BMW 745 competitor. The bottom line is down-market brands (VW) of luxury equivilents (Audi) can move sideways into better performance but never up into luxury without people being unwilling to pay for it, just as up-market brands can never move down into economy cars w/o diluting their brand. You have VW, you have Audi...keep it that way.
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Calguy 11:38AM (3/11/2007)
VW would need to accomplish two things to re-enter this market successfully.
First, it needs to offer something the others don't. Hybrid-amazing fuel economy, or cruelty free leather, recycled wood/aluminum interior, wi-fi internet,k hatchback -something significant that makes the VW seem like the ONLY car to pick, (as the Prius as done) when choosing an indulgent luxury car. There is a noteworthy market for an expensive product that redefines the category. Not a heavy also-ran.
Style the car with classic lines but with an edge. When the Buick Lacrosse copies the Phaeton (because the styling is such a snore), it should be obvious that the design is not interesting enough.
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ItGuy 11:26AM (3/11/2007)
Ford 500's lost cousin? Man that thing just reeks of the defunct 500.....
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Howard Kerr 11:49AM (3/11/2007)
Apparently no one has told Dr. Winterkorn that the definition of insanity is to keep trying something over and over while expecting different results.
I would have to agree with Calguy (poster #3) that VW COULD pull this off if they came up with something truely original....and MOST importantly, was what folks wanted. Incredibly conservative styling (that looks like the company's smaller/overpriced Passat), at a ridiculous price point...ISN'T what Americans are looking for.
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Steven T. 12:02PM (3/11/2007)
Calguy hit the nail on the head. VW might have a chance if it could think far enough out of the box to redefine a luxury offering. A socially responsible angle would fit particularly well with VW's roots.
Alas, the Phaeton thus far has been an unimaginative, ego-driven exercise in futility on the part of VW executives.
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ruggels 12:27PM (3/11/2007)
Considering VW indicates they're going to need to reposition the car when it returns, i'm going to bet they'll drop it's price significantly (ala the A8 when it was introduced, or the bugatti or any other VAG exercise of entering previously uncharted markets for a specific marquee) and sell it at a bigger loss to establish the car.
It'll still seem rather pointless, but it might sell better if we see the V8 model being offered for 5 series money
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mr.ed 1:40PM (3/11/2007)
A neighbor bought one at the end of the last model year under $50k, and still loves it. Spends more on car washes than gas.
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iQuack 2:06PM (3/11/2007)
Fine car that will fail again for the same reason: too rich to be a crappy VW. The VW logo on the grille is the biggest problem.
Offering such an upscale car at a VW dealership is another issue--it's like buying a ROLEX from K-Mart.
That's the difference between ignorance and stupidity: ignorance is not knowing something, and stupidity is doing the same, silly thing repeatedly.
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ruggels 2:29PM (3/11/2007)
"Offering such an upscale car at a VW dealership is another issue--it's like buying a ROLEX from K-Mart."
Truer words have not been spoken, sadly. :/
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KJC 3:26PM (3/11/2007)
As a VW owner the Phaeton is magnificent car. VW customer service and dealer network is not.
For the Phaeton to succeed in the US against Lexus, Infinity, BMW, Audi, and MB they have to improve customer service and dealer network to their level.
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Mike F. 3:33PM (3/11/2007)
You'd have to be out of your mind to buy one of these things. The depreciation is monumental.
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JIm 5:35PM (3/11/2007)
Most Americans buy value. The Phaeton certainly misses that mark. One only need look at traderonline.com for used Phaeton prices. What a shock to someone that just laid out $75-$100K for one. The secondary market is the place to go if you want a high end VW at a basement price.
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C robinson 7:52PM (3/11/2007)
"Offering such an upscale car at a VW dealership is another issue--it's like buying a ROLEX from K-Mart."
Have you been to a VW dealership recently? I don't know about where you are, but where i am the vw dealerships are top notch, and all of their new models right down to the golf have a luxury and high quality feel. In my world the k-mart of the auto world is the local gm or ford dealership.
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Ken 6:46PM (3/11/2007)
I think the biggest issue was VW was not only doing a bad job on marketing...but they were marketing to the Jetta and Golf crowd - not the A8/7 Series/S class buyer!
I really want to see this car succeed in the USA, it is am amazing piece of hardware.
A few years ago, I was in a old, shopping center in a sleepy part of the Bay Area (way over in the East Bay) and as I was walking thru the parking lot, see an interesting car that kinda looked like an Audi, but was not. Went over and it was a Phaeton. My god it is a pretty car, and only a car freak would know what it was. Perfect car for someone who does not want to draw attention - yet wants something very nice.
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Matt 7:47PM (3/11/2007)
I liked the Phaeton, very classy.
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ruggels 9:25PM (3/11/2007)
"Have you been to a VW dealership recently?"
Here's a fun test, go to your dealer, ask them how often the DSG transmission needs to be serviced. Of the 30 dealers I contacted NONE could provide the proper information but instead told me it was a life time transmission, and told me the part of the manual which refereed to a 40,000 mile interval was just 'a generalization'. So yes, that's the problem, many of us have been to VW dealerships recently, and while I'm not sure where you live, I do know I have 30 within a 100 mile radius of my home, and I only purchase cars from one and service my cars at another, that's 2/30, due to atrocious service and sales experience. He's just being realistic.
Oh and I've got a call on my answering machine from VW's head of north american customer service, so apparently they're as concerned as I am about this.
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Dennis 10:37PM (3/11/2007)
I think the only way the Phaeton would suceed, they would need to drop the price (way down) and make it a car that someone who has owned a Jetta/Golf and then a Passat and wanted to graduate to a bigger car.
Frankly, VW should be trying to work at getting more entry level cars in the market, like the current VW Fox or Polo. VW already has $70K car- it's called an Audi.
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Aardappel 10:54PM (3/11/2007)
I can see why it failed in the market, but that doesn't make it a bad car, in fact, it is a rather gorgeous and amazing car.
They could have differentiated it a liiittle bit more from the previous gen passat though (which in itself is a good looking design, unlike the current gen, which looks like the jetta).
I'm shocked how many car enthusiasts (presumably people posting here) are badge snobs. If Buick brought out a car tomorrow that was superior to a bmw along every possible metric except badge-value, I'd buy it over the bmw. And its not like VW is that terrible a brand.
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