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The second generation of Volkswagen's Phaeton luxury sedan will offer turbocharged direct injection diesel and plug-in hybrid engines, company sources say.

VW's big sedan is expected to arrive in the U.S. for the 2018 or 2019 model year. This year, Michael Horn, CEO of Volkswagen Group of America, confirmed that the Phaeton would return to the U.S.

The sources say the Phaeton will be offered with several high-powered engines, including a V-8 TDI that generates about 450 hp and a V-6 gasoline plug-in hybrid, rated at more than 400 hp. VW also will offer a top-of-the-line W-12 engine that is unlikely to be available in the U.S.

The price of the new Phaeton in the U.S. is expected to start at around $70,000.



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