Next VW Phaeton could return smaller, cheaper and under diesel power

Although most of the automotive industry was left scratching its collective head when Volkswagen introduced its flagship Phaeton in the first place, Volkswagen itself is still scratching its head trying to figure out what went wrong, at least in the U.S. It's not giving up, and in the process has given us another set of hints at the form the next Phaeton could take.

According to reports from Automotive News, Volkswagen of America CEO Stefan Jacoby has revealed that the next Phaeton will come to the American market with a $55k price tag, a shorter wheelbase, a diesel engine and more modest and patient expectations from Wolfsburg. The $55k price target would significantly undercut the $70k base price the current Phaeton had when it was pulled from the U.S. market, even with purchase incentives that at times topped $10k. Using a turbodiesel engine in the new Phaeton, according to Jacoby, would allow the luxury sedan to be positioned as the company's technical and environmental flagship. (Watch out, Lexus.)

[Source: Automotive News – sub. req'd]