Who Wants A VW Limousine? New Phaeton Delayed To Seek Production Cost Savings

Volkswagen is delaying the introduction of the new Phaeton as the automaker seeks to improve returns on the slow-selling, upscale sedan by lowering production and material costs, people familiar with the matter said.

Even though a new version of one of VW's least successful models is ready for production, the automaker is again reworking the Phaeton, which costs more than three times the mid-size Passat sedan, said the people, who asked to not be identified because the discussions are private.

VW did not on its plans for the model.

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TheSteve - 8/21/2015 11:38:51 AM

+1 Boost

“Insanity is doing the same thing over and over again and expecting different results.” – Albert Einstein

A big Passat made with luxury materials and a high price tag was already done (and it was made in a very spiffy and spotless factory). It sold in very small numbers. Doing it again won't make people suddenly leave MB, BMW, Audi, and Lexus showrooms for VW's.

I recommend to Volkswagen Audi Group that they position VW as their practical, economy brand, and price accordingly. Position Audi as your premium/luxury brand. Position Bentley as your super-luxury brand. Position Lamborghini as your exotic sports brand. Once you've established this, any new vehicle you create should fit nicely into those brands and into their respective positioning. You shouldn't find an economical Bentley, a practical Lamborghini, or a luxury Volkswagen.

MDarringer - 8/21/2015 8:04:12 PM

0 Boost

My scenario:

VW = Ford
Audi = Mercury
Bentley = Mercedes
Bugatti = Rolls

Porsche and Lamborghini do sports cars NOT Bugatti.

carsnyc - 8/21/2015 12:55:43 PM

+1 Boost

Steve, I'm with you while I also think that VAG is trying to do all of that. The problem is that they are not totally succeeding: VW is a mess in the U.S.; Audi won't stop from being third after Benz and BMW; and Bentley and Lambo are just too small.

Dexter1 - 8/21/2015 3:06:05 PM

+3 Boost

A VW is never going to be S-Class competition no matter how much they think they can charge for it. Suggestion: Take the giant VW branding off the front and back ends and position the Phaeton as its own luxury brand. It will of course be a poseur brand like Lexus/Toyota, but at least it might have a chance to compete with some MB and BMW offerings. Nobody wants a $100,000+ Volkswagen no matter how good it is of how much quality content it has in it. Put a VW badge on their Bentley product and watch sales tank.

MDarringer - 8/21/2015 8:02:52 PM

+2 Boost

If VW did a Passat "Avalon" at Avalon prices, then we'd be talking genius move.

This will still be STUPID.

ricks0me - 8/21/2015 9:48:03 PM

+1 Boost

MD: If Audi = Mercury
Than Audi would be out of business

mre30 - 8/22/2015 5:23:52 PM

+1 Boost

Attention AutoSpies dimbulbs...

The ONLY reason VW sells the Phaeton, is because it shares a platform with the Bentley Flying Spur/Continental and that allows them to "amortize" the fixed investment in developing the shared platform between more than one model. VW IS NOT marketing the Phaeton to capture the "cheap limosine" market. It is there simply to defray costs.

If VW didn't sell the Phaeton, they couldn't justify selling the Bentley lineup - the numbers wouldn't work (or should I say - wouldn't work to a lesser extent than selling Bentley standalone).

Cost-wise, if Phaeton goes away, Bentley goes away. Its that simple.

Discuss amongst yourselves!

jameswisrik - 8/22/2015 6:11:04 PM

+1 Boost

VW in my eyes is a luxury YUGO!