VW Phaeton May Rise from the Dead

VW Phaeton May Rise from the Dead

By Michelle Krebs September 16, 2009

Volkswagen reportedly is considering bringing its Phaeton luxury car back to the U.S., but this time with a diesel engine, a top executive told reporters at the Frankfurt auto show.

Volkswagen Group CEO Stefan Jacoby said VW wants to bring back the Phaeton, which  launched in the U.S. 2003, reached its peak of 1,939 sales the next year and was pulled out of the market in 2007 due to slow sales.

"I have to admit that it was a mistake to take this car out of the market," Jacoby said in a media briefing at the Frankfurt auto show as reported by the trade publication Automotive News. "We think that the Volkswagen brand is a good place for this. We are looking at various alternatives for the re-launch of Phaeton."

Indeed, Volkswagen has been enjoying success of late with its diesel engines, which have been accounting for more than a quarter of its sales in recent months. Volkswagen said it virtually sold out of its 2009 diesel-powered models, specifically the Jetta and Jetta SportWagen during the U.S. Cash for Clunkers program.

Mark Barnes, COO of Volkswagen of America, said in the company's August sales report that the automaker was beginning sale of the 2010 Jetta TDI early September and the 2010 Jetta SportWagen TDI in later September.

The luxury Phaeton, which at launch cost about $70,000 at the time, was largely praised in reviews, however, was criticized for not be appropriate for Volkswagen's product line, then see as more an economy brand than a luxury one. The price jump between the previous top-of-the-line Volkswagen Passat and the Phaeton was a difference of tens of thousands of dollars. - Michelle Krebs 

Photos by Edmunds.com

1 - Volkswagen introduced the Phaeton in the U.S. in 2004.

2 - 2004 Volkswagen Phaeton

 

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.