Volkswagen Phaeton: coming back to America?
The facelifted Volkswagen Phaeton - click to view in high resolution
"Mistake" is a word often used in association with the Volkswagen Phaeton. Some say it was a mistake to make it in the first place; some say that it was a further mistake to launch it in the American market. However, Volkswagen says it was a mistake to withdraw it from the US marketplace. This from the mouth of Stefan Jacoby, CEO of Volkswagen of America, echoing previous remarks from VW chief Martin Winterkorn.
Jacoby makes a tough argument, considering how poorly the Phaeton performed in the US. Introduced in late 2003, it sold just short of two thousand units in 2004, and in the two years after, it failed to sell more than a thousand before being pulled. Compare that to the Bentley Continental, which shares its underpinnings with the Phaeton, yet has been selling like six-figure pancakes despite yet costing two-three times as much. The conclusion was that, no matter how good the car, American consumers were not prepared to pay big bucks for a VW, and the gap in Volkswagen's sedan range stretching from a $39k fully-loaded Passat to the $64k base Phaeton was just too large. However several developments will reduce that gap: the Passat has gotten bigger, the higher-end Passat CC was introduced, the next Phaeton is anticipated to go down-market compared to the current model, and Volkswagen is also preparing another model to fit in between. A more cost-effective Phaeton could stand a better chance in the American market as the flagship in a range of luxury sedans than it did as an island floating off the shore of Volkswagen's core line-up.
[Source: Automotive News - Sub. Req.]
Reader Comments (Page 1 of 3)
Jason 9:09AM (2/04/2008)
VW,
Thanks, but no thanks.
-North America
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BAMF 3:20AM (2/05/2008)
Its the most exclusive luxury sedan in town. Nobody even knows what it is, save that it appears to be a big, powerful, luxurious German sedan. The best part-- it's about $15k less than all its competition. Along with that, its got the ride of a Bentley (thanks to the Continental-derived chassis), along with the power (the unique and powerful W12). And yet still, foolish, image-conscious Americans refuse to buy one because the BADGE inadequately reflects how much money they think they need flash in all their friends' faces.
Pathetic. Who the f@#k wants to drop $80k+ just to blend into an already overcrowded sea of S550s and 750Lis anyway?
When the time comes for me to part with my wonderful and beloved Audi A8, a Phaeton will be my replacement. And just as the case is now, I'll have the only one parked on Park Avenue, turning heads, begging the question, "wow! what is that?!" And everyone will ignore the Mercs and Beamers. And my Volkswagen will shine.
And I'll owe it to all of you haters, who helped me get it so cheap. Thanks!!
Throwback 9:12AM (2/04/2008)
Why? Why this over priced tank and no Scirroco?
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psarhjinian 9:21AM (2/04/2008)
And for the fourth time in two weeks:
German auto execs are unbelievably arrogant. They just cannot admit they're wrong, and the can't admit that that may have endemic problems.
The Phaeton is a distraction activity. If VW can't make money selling Golfs and Jettas and has quality control issues across the line, why do something like this (or the Passat CC) unless they're pulling a corporate Hail Mary?
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narf 9:23AM (2/04/2008)
It's still going to be a tough sell these days. VW's image doesn't support a $60-100k car, nor does the dealer network. Back then, reliability with the Mk.4 was also a very brand souring issue; besides all the stories out there, two of friends had one too (bought brought brand new and unmodded) - one got bought back as a lemon, the other's electrical caught on fire and was paid off.
When they can't even get a base-spec $15k car to go without constant visits to the service department, what would folks think of one that's chock full of electrical gadgets and hits the $100k mark? VW's reputation has not recovered from that, nor will they in the near future, still.
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calebe 9:24AM (2/04/2008)
Just what i always wanted, a 40k VW. No thanks. I think the Up Space! is more of what I want thank you.
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Jared 9:30AM (2/04/2008)
VW is still committed to competing heavily with Audi, which they already own, using an overpriced, overweight, unreliable pig of a car, "serviced" at VW dealers that can't be trusted to change a lightbulb.
Put down the crack pipe Mr. Jacoby.
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Gregg 9:33AM (2/04/2008)
I think VW is moving in the right direction: keep adding models, even niche models, to what has been until recently an older and limited mix. They are of course going to focus on small cars as well. Look at Toyota. They offer more models (SUVs, CUVs, sedans, trucks, niche models) than almost anyone else. Not all of them are top sellers, but it has worked for their bottom line. Certainly it is clear from Ford's recent experience that you cannot just rely on a few great selling models (F150, Mustang, Edge) to carry you through.
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narf 9:45AM (2/04/2008)
Toyota had to branch out to (try) being the answer to everything (Scion/Lexus).
Trying to be an "answer to everyone" isn't the real solution, especially when Audi already exists to handle the luxury market. It was a sales flop the first time, and will still be again.
Mr. Oak 11:11AM (2/04/2008)
Gregg: This is a No win for VW. They bring a spotty reputation to the most discriminating and hotly contested segment of the car market. This will arrive just about the same time that the DTS\STS replacement arrives from Cadillac, further complicating things for them.
They'll be having fire sales on these things in 18 months.
Eddie 9:47AM (2/04/2008)
I disagree with this. I think VW should cover the $15,000-$35,000 range. Audi should do $35,000-$100,000, and Bentley six figures and beyond.
I hate how VW is trying to go up market with a lot of their cars. The GTI and GLI are a few thousand too much. You can equip a GLI to cost over $30,000. A $30,000 Jetta!
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Zane 4:20PM (2/04/2008)
The Audi R8 has already breached the $100k mark and the upcoming V12 R8 will probably crest 200 grand. Get your facts right mate.
JMC 3 9:56AM (2/04/2008)
From what I understand it's coming back in name only.There will be no similarities between the outgoing model and the new.The new model is a cheaper Passat derivative 4 door coupe.
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Mirko 10:00AM (2/04/2008)
Oh, please.
A base model Jetta (1.6 engine, 102 hp, steel wheels) is 17K ($25K) before taxes in germany.
If you could buy a nicely equipped 200hp Jetta for $30K in Europe, it would be considered the bargain of the century.
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DKB_SATX 10:08AM (2/04/2008)
Yes, but a large part of that difference is VAT. That $30k Jetta here is competing against a range of cars, many a bit larger or with better perceived reliability. The two markets are quite different, as is the brand perception in them.
Schmeltz 10:04AM (2/04/2008)
"Why? Why this over priced tank and no Scirroco?" Good question, Throwback!
I gotta agree with most of the posters in this thread...bringing back the Phaeton, even at a lower price is not the answer to VW's ills. Man, I can't believe what happened to this company! Ever since they started heading up-market with their products, and neglected their core audience, the sales started their decline. I don't condemn them for wanting to pursue up-market clientele, but, I do disagree with only offering that $40-60,000 Tiguan as their only SUV, Passats that are several thousand higher than the Accords and Camry's they are competing with, reliability issues with certain models, etc. It is good to see they have set an ambitious sales goal for North America, but they will have their work cut out for them in so many areas.
I'm rooting for them to turn themselves around, but they had better make better decisions than things such as bringing back the Phaeton.
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psarhjinian 11:17AM (2/04/2008)
What happened is Ferdinand Piech. He was voted "Auto Exec of the Century" and we can't spoil his legacy by admitting that his tenure was anything less than a visit from heaven by the Angel of Management.
The Phaeton exists because it takes the spotlight off VW's other problems. Whether this is a conscious decision by VW, or a subconscious one, isn't immediately obvious.
zamafir 10:06AM (2/04/2008)
right... or come a month purchase the new 2.0T Wolfsburg edition for 20 and change (2.0T, 200hp, 200tq, 6MT). So yes, while it is fun to cite niche models clearly targeted at organic growth (top spec GTI, GLI, R32), vw's also selling a remarkably well equipped rabbit for 15 and change (four door) and the aforementioned wolfsburg is on it's way offering civic si performance and a superior interior for over a grand less... not to mention the tiguan.
Yes, the phaeton is a ludicrous model to offer in the US, but lets not pretend VW isn't making an effort to sort themselves out better in the 15k-35k range.
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Eddie 10:07AM (2/04/2008)
For the same price as the $30,000 200hp Jetta you could buy a V6 Camry or a Subaru Legacy GT. The Jetta doesn't seem like it is the best deal.
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Andrew 10:07AM (2/04/2008)
the US works much different than Europe as far as car pricing goes. This is why everyone laughs when people directly convert from pounds/euros to USD.
over here, a $30k jetta is practically insane given what you can get for that kind of money.
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