Volkswagen's Phaeton II On Target - Should They Be Aiming At Mercedes Or The Soft Underbelly Of Lexus?

This makes NO sense.

Just another scratch-your-head move by VW.

The ONLY way it makes sense, is if Phaeton II comes in priced in full parity with the Touareg SUV - starts in the $40,000 and tops out at $55,000. Oh - it should also be nearly the same size as before (about the size of an Audi A6 - positioned above the Passat) and it should have AWD.

Even then, it may only be modestly successful.

@mre30 The Toerag is $15K overpriced at base. For what it is, it needs to be $30-45K. The Toejam is stupidly overpriced for one and for two it is wildly inept at being a Grand Cherokee or a crossover.

The Touareg is priced reasonably for what it is. The market VW should be targeting with the Phaeton II is the car for BMW 3-series buyers to "step-up" to when their 328i gets too small for their lifestyle, the don't want an SUV or a Minivan, they can't afford a larger premium German Car (5er, E, or A6) and they can't afford anymore than they were paying for the 3-series - if it is a nice "German" product in the $40-$55K price point, the Phaeton II will do well.

VW should not be aiming at Avalon, Impala, Taurus - they should be aiming for the A4, 328i, and C class trade-in buyer. Basically a bigger version of the low-end premium German car.

@mre30 VW's OWN market research says that BUYERS see it as a Toyota/Honda/Hyundai/Kia/Ford brand not near-premium/premium. VW's OWN market research says that DEALERS see it as a Toyota/Honda/Hyundai/Kia/Ford brand not near-premium/premium. DEALERS know BUYERS will not consider a VW vis a vis a BMW.

VW's North American strategy is arrogant. Dealers surveys show that they want:

Up! @ $13K base
Polo @ $15K base
Jetta @ 17K base in 3 door, 4 door, and 5 door / Golf name dropped
GTI @ $20K base
Passat @ $23K base
Beetle redone as a hybrid/plug in hybrid model
A CC sized and priced like an Avalon
a VW "HRV" type vehicle
a VW "CRV/RAV4"
a VW "Edge" 5 seat crossover an "Explorer" 7 seat version
the Amarok
cargo vans

VWAG does survey after survey that produce the same results then they do whatever the hell they want, ignoring the research.

Meanwhile sales in the North American market of VWs is imploding as is profit margin.

It should be aimed at the Avalon, Taurus, Impala, Lacrosse, Maxima, Cadenza, Azera, and 300.

Literally NO ONE takes VW's misguided premium aspirations seriously. VW only did the Toenail so they could amortize the Cayenne and Q7. The Phaketon sedan was done only to have a base for Bentley. Leveraging the next Panamera for Porsche, Audi, and Bentley models makes more sense than creating YET ANOTHER mastodon FWD VW product.

VW should recast the CC as a Jetta coupesedan to replace the GLI.

The Passat needs a GLI variant.

A VW "Avalon" should be the new Phaeton.

"the soft underbelly"...lol!

I doubt the accuracy of a new Phaeton hitting the market late 2016, there are no technical details provided here or elsewhere. With VW deficient in SUVs, an aging Jetta and NA Passat - and other VAG new Gen products missing introduction marks (Q7, A4) - this seems like a misplaced priority. Rumors of the second gen have been in and out of the press for the aging Phaeton which was introduced IN 2002!

I agree. No VW product is above getting messed over by VWNA. The Phaeton II, no matter how good it may be, will not be able to compete properly in the US.

Here's a more complete listing of the cars that made the Bernstein Research all-time money losers survey:

http://www.wintonsworld.com/smart-tops-list-time-european-money-losers/