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Volkswagen might close the opulent factory for the Phaeton in Dresden, Germany, to cut costs. The plant reportedly only builds eight of the luxury sedans a week.


Another boutique maker of compact sports coupes has filed for bankruptcy in Germany. Melkus was a company we always enjoyed seeing at European auto shows. You never knew where the company would be – all of a sudden you'd notice a sleek, lissome coupe with open gullwing doors and you'd go, "Ah, there you are." That won't be happening anymore unless a white knight shows up: Melkus has reportedly filed for bankruptcy in a Dresden court, citing a lack of sales for its dire cash position.


2011 Volkswagen Phaeton – Click above for high-res image gallery


A Trabi-Safari in Berlin - click above for high-res image gallery


UPDATE: Due to a reporting error in the source material, we had the wrong North America sales total for Bentley. The correct number now appears below.

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