Volkswagen’s Phaeton was a first-ever flasgship for the brand, however it was a troubled car from the get-go. As a result, the Phaeton did not sell well. This due to the fact that it was indeed a very expensive Volkswagen and it was entering a market, which consisted mainly of buyers who were very nameplate-conscious. Additionally, it was overlooked because it was trying to put up a fight against the Mercedes-Benz S-Class and the BMW 7-Series. Despite these points, Volkswagen has just announced that a new one will be coming in 2015.

The Volkswagen Phaeton wasn’t a terrible car. It had an interior that rivaled a Bentley (because the Phaeton was built along side the Bentley Continental in the same VW factory in Dresden, Germany). But it’s humdrum looks, poor ride comfort and uninspiring handling made it lack significantly against the competition.

Word is that the new one, internally dubbed the VW631, will be completely new and based on Audi/Volkswagen AG’s new MLM Evo modular platform. It will also feature an aluminum-intensive body with a more advanced layout and less nose-heavy characteristics.

The new Phaeton is slated to be positioned between the A6 and the A7. Powertrain options are still being planned, but rumor has it that the new Phaeton will be powered by a four-cylinder, a hybrid powertrain and two options of high-output six-cylinders.

What should also be noted is that Volkswagen is planning for several body variants of the Phaeton, which may include a “four-door coupe” version, a five-door hatch version a la Audi A7 and a Jaguar Vanden Plas-like elegant and luxurious Super-Variant.

- By: Chris Chin

Source: CAR

2011 Volkswagen Phaeton

Update: Volkswagen has just dropped us an e-mail saying that no final decision has been made on bringing the Phaeton to the United States. “While Volkswagen believes there are opportunities for the Phaeton in the U.S., no final decisions have been made,” said Kerry Christopher, Manager of Product Communications at Volkswagen of America. “Of course, we are working closely with our Dresden colleagues to evaluate any opportunities in this market.”

The Volkswagen Phaeton will be coming back to the United States, according to a report by Bloomberg. Originally, when the Phaeton was introduced to the stateside a decade ago, critics said the luxury car would never sell from a company that made cars like the Beetle. While they were right at the time, Volkswagen is keen on taking a second shot.

The move to reintroduce the Phaeton comes as Volkswagen plans to triple market share by 2018 in the United States. A facelifted model of the Phaeton is currently sold in Europe. But the model that will come to the United States will be completely redesigned and reengineered says Juergen Borrmann, director of Volkswagen’s plant in Dresden, Germany.

If Hyundai can make a success out of the Genesis and have enough courage to introduce the Equus, a Mercedes-Benz S-Class and BMW 7-Series competitor, we definitely think the Volkswagen Phaeton can make it the second time around. However, pricing will be a very significant part of its success.

It was recently reported that Volkswagen is working a hybrid variant of the Phaeton as well. No word on whether the hybrid Phaeton will come to our shores.

2011 Volkswagen Phaeton:

- By: Omar Rana

Source: DriveOn

2011 Volkswagen Phaeton

Many of you may be wondering why Volkswagen recently gave the Phaeton a minor facelift instead of redesigning the full-size sedan completely. Well, according to latest reports from Europe, Volkswagen is planning to change its ambitions for the Phaeton.

Instead of aiming for the BMW 7-Series and the Mercedes-Benz S-Class, Volkswagen will tailor the next-generation Phaeton for the United States and China. The next-generation model will get a new platform with styling and mechanicals that will be targeted towards the U.S. market.

“There”s no doubt that the Phaeton absolutely has to go back to the US,” an insider told AutoCar. “This is being reflected in the next version. It will look much more like a car for America.” That”s likely to mean a slight increase in size and far more ostentatious styling than the current, ultra-conservative look.

Besides a V6, V8 and V12 version, Volkswagen is also considering a hybrid Phaeton that will use the same setup as the new Volkswagen Touareg Hybrid.

2011 Volkswagen Phaeton:

- By: Omar Rana

Source: AutoCar

2011 Volkswagen Phaeton

Volkswagen today released additional images and details on the new 2011 Phaeton luxury sedan. The 2011 Volkswagen Phaeton comes standard with a 3.0L FSI V6 making 276-hp along with an optional 6.0L W12 making 444-hp.

Volkswagen currently has no plans to reintroduce the new Phaeton in the United States until it gets a full redesign in 2013 or 2014.

For now you can enjoy the updated high-res gallery posted after the jump.

Click through for the high-res image gallery along with a detailed press release.

2011 Volkswagen Phaeton:

Press Release:

To the point: The new Phaeton – One of the world’s highest quality saloons got even better
Flagship of the Volkswagen brand has fundamentally new front-end styling

Online services and dynamic main beam control make their way into Phaeton
Wolfsburg / Sanya, 05 June 2010 – Volkswagen produces one of the world’s highest quality and most exclusive automobiles at the German Transparent Factory (Dresden): the Phaeton. The quality, style and travelling comfort of this saloon (standard all-wheel drive, air suspension and 4-zone automatic climate control) set their own standards. The Phaeton is offered with two wheelbases as well as two rear seating versions (three seat bench or two individual seats). Now Volkswagen has further perfected the brand’s flagship.

The entire front end was redesigned, including the standard bi-xenon headlights with LED cornering lights. Also tuned to match this look are the new LED rear lights. In parallel, an abundance of new technical features are making their way into the vehicle. They include a new brake system, the Dynamic Light Assist (camera-based, dynamic main beam control) system being introduced in a saloon for the first time, and a navigation system, which can integrate online data in the map display upon request. Moreover, thanks to an optional front camera the Phaeton “sees” traffic signs; speed limit signs are visualized in the instrument cluster (multifunction display) and the central touchscreen of the centre console. The system will be the first in the world to recognize and display no-passing zone markings. The latest generation of the Phaeton will launch on the market in just a few weeks (Europe in June; China in August).

V6, V8 and W12 engines: On the drive side, four engines are available (one turbodiesel, three petrol). The six, eight and twelve cylinder engines cover a power range extending from 176 kW / 240 PS to 331 kW / 450 PS. The six-cylinder petrol engine in the Phaeton is a V6 direct-injection engine (FSI with 206 kW / 280 PS). At the power levels above the V6 FSI, a V8 and a W12 petrol engine are available (246 kW / 335 PS and 331 kW / 450 PS). In the diesel area, Volkswagen offers an extremely fuel efficient and refined V6 TDI (174 kW / 240 PS) whose combined fuel consumption has been reduced from 9.0 to 8.5 l/100 km (equivalent to 224 g/km CO2).

Design avant-garde: The Volkswagen Design-DNA developed by the Head of Design for the Group, Walter de Silva, defines the car’s lines. In the area of the new front end, in particular, the design team added a measure of precision to the original, stylish and superlative image of this model. This gave the timelessly elegant Phaeton a broader and more powerful appearance: In keeping with the current Volkswagen Design-DNA, horizontal lines dominate the geometry. Different than on any other Volkswagen based on this new DNA so far, in the Phaeton the radiator grille is not styled in glossy black; rather a completely new chrome element is used. This radiator trim has a decisive impact on the styling of the new Phaeton.

Joining the left and right sides of the grille are the newly developed bi-xenon headlights with integrated LED indicator lights and LED cornering lights. The new bumper design complements the radiator grille and headlight styling. Here too, horizontal lines are the virtual common thread linking their design. Even the front fog lights now shine in LED technology. The rear section of the car was also modified. In this area, the design team chose not to change the classic, clear and powerful basic styling of the Phaeton; instead it developed new smoked LED rear lights. Similar to the front end, the rear bumper was also modified. In its side profile, the car’s new side trim strips and narrow-styled LED indicator lights in the outside mirrors stand out.

Interior artistry: The interior of the Phaeton is one of the most elegant, high quality and comfortable of the entire luxury class. The styling is linear and timeless; the materials and quality of workmanship define the benchmark worldwide. Unmatched in quality are its technological concepts such as a draft-free 4-zone climate control system and 18-way seats with award-winning ergonomics. As an alternative to the version with three rear seats (5-seater), the saloon may be ordered with two electrically adjustable individual seats as an option (4-seater). The Phaeton is also available in an extended chauffeur version that is 120 millimetres longer. The possibilities for customising the saloon are practically limitless with numerous options from Volkswagen Exclusive covering a broad range of leather, Alcantara trim, wood accents and such features as a refrigerator and multimedia systems. This also applies to the new styling of the multifunction steering wheel; it can be ordered in either leather or a wood-leather combination that is coordinated with the interior accents. Many customers in Europe ““ and those customers travelling to Europe – take advantage of the opportunity to configure their new Phaeton with original leathers, woods and paints right at the Transparent Factory.

Infotainment systems: The thoroughly intuitive operation of the Phaeton was transferred unreservedly to the current generation radio/navigation system (RCD 810 as standard unit and RNS 810 as an option). The systems, whose features include 8-inch touchscreen control, form one functional unit with the climate control and multimedia controls. In the new Phaeton, Volkswagen is offering – for the first time – an Internet-based Google function as a supplement to the map display of the RNS 810 radio-navigation system with 30 Gigabyte hard drive. The relevant data are loaded into the system via mobile telephone using a specially set up Proxy Server. Visualisation on the touchscreen display is the same as that of the Google maps “Satellite” view or the Google “Hybrid” map on the iPhone, which are familiar from the conventional Internet, and it includes Points of Interest that can be called up. In the Phaeton, the satellite images are of course supplemented by the selected route recommended by the navigation system.

Ideally, the system loads the data over a UMTS connection. The telephone itself is fully integrated in the system via remote SIM Access Profile (rSAP). If a user wants to use a mobile phone with Hands-Free Profile (HFP) as an alternative (e.g. the iPhone), this is also possible in the new Phaeton (in this case, Google is not activated). The infotainment system can do even more. Thanks to an optional camera, it can now recognise traffic signs and show the relevant information on the touchscreen and/or the display of the multifunction display (located between the speedometer and tachometer). By the way, this is the first vehicle in the world to indicate no-passing zones to the driver.

Electronic assistance systems: Assistance systems on the Phaeton include the new Dynamic Light Assist (dynamic main beam control), ACC (adaptive cruise control), Front Assist (surroundings monitoring system) and Side Assist (lane-changing assistant) systems. A tyre pressure monitoring system contributes to an even higher standard of safety. A completely new development is the optional Dynamic Light Assist: In conjunction with a camera integrated behind the front windscreen, the main beam modules of the bi-xenon headlights remain continually active; they are only masked in areas in which the system has analysed potential glare to other traffic participants. As a result, the driver has considerably more light to work with, and the system offers a clear gain in safety and driving convenience.

- By: Omar Rana

2011 Volkswagen Phaeton

Meet the 2011 Volkswagen Phaeton – but wait, it doesn’t look so much like a redesign – well, that’s because it’s not. For 2011, Volkswagen focused its attention on giving the Phaeton a much needed facelift and with that in mind, the German automaker won’t bring this model to the United States.

Volkswagen probably won’t attempt to re-introduce the Phaeton to the U.S., which it had a lot of trouble selling here, until after it gets a full redesign in 2013 or 2014.

Overall, the 2011 Volkswagen Phaeton gets some minor exterior restyling touches to the front that give it a more luxurious feel. There are also a lot of new technical features including Dynamic Light Assist (camera-based dynamic main beam regulation) and a navigation system that can integrate online data from Google into the map display. There is also an optional front camera can ‘read’ road signs, with speed limit signs displayed on the instrument panel and center console”s touchscreen. The system can recognize “˜no overtaking” signs ““ the first in the world to do so.

The 2011 Volkswagen Phaeton comes standard with a 3.0L FSI V6 making 276-hp and offers all the way up to a 6.0L W12 making 444-hp.

Hit the jump for the press release and high-res image gallery.

2011 Volkswagen Phaeton:

Press Release:

Initial Facts: World Premiere at Auto China 2010:

- Phaeton debuts with new design and new technologies
- Flagship of the Volkswagen brand with fundamentally new front design
- Online services and dynamic main beam control arrive in the Phaeton

Wolfsburg / Beijing, 22 April 2010 – At the Transparent Factory in Dresden Volkswagen produces one of the finest automobiles in the world: the Phaeton. The limousine”s quality and comfort (four-wheel drive and air suspension as standard) set a unique benchmark. Volkswagen, the most successful carmaker in Europe and China, has now made the Phaeton even more perfect. The company”s new flagship is being unveiled for the first time at Auto China 2010 (27th April to 2nd May) in Beijing.

Its contours are defined by the Volkswagen design DNA developed by Walter de Silva, the group”s Italian chief designer. Around the completely new front section in particular the design team has further refined the model”s very own stylistic aplomb. In the process the timelessly elegant Phaeton has gained a broader and more powerful appearance. The new model is also characterised by modifications to its rear section and silhouette.

At the same time, new technical features have been added. These include Dynamic Light Assist (camera-based dynamic main beam regulation) and a navigation system that, if desired, can integrate online data from Google into the map display. In addition to this, the Phaeton”s optional front camera enables it to “˜see” road signs, with speed limit signs visualised on the instrument panel and centre console”s touchscreen. The system will also be able to recognise and depict “˜no overtaking” signs ““ the first in the world to do so!

The Phaeton will be available with a choice of two wheelbase options, two back seat versions (three seats / two individual seats) and four engines (a turbo diesel and three petrol engines). The six, eight and twelve-cylinder engines range in capacity from 176 kW / 240 PS to 331 kW / 450 PS. The standard drive unit used in the Phaeton is a V6 petrol engine producing 206 kW / 280 PS. At the capacities above the V6 FSI the choices available are a V8 and a W12 petrol engine, delivering 246 kW / 335 PS and 331 kW / 450 PS respectively. On the diesel front Volkswagen is offering an extremely frugal and smooth-running V6 TDI. In Europe it is the most frequently selected engine for this car. The turbocharged common rail direct injection engine delivers 176 kW / 240 PS and accelerates the Phaeton V6 (top speed in this case 237 km/h) from 0 to 100 km/h in just 8.6 seconds. This is accompanied by average fuel consumption that has now been reduced still further to just 8.5 litres per 100 km (equating to 224 g/km CO2).

Phaeton exterior

Depending on wheelbase, the 2011 model Phaeton is between 5.06 and 5.18 metres long. As mentioned above, a completely new front section has been developed for this flagship of the Volkswagen brand. In keeping with the current Volkswagen design DNA, its form is dominated by horizontal lines. Unlike all other Volkswagens created to date on the basis of this new DNA, the Phaeton does not have a shiny black radiator grille cover, but instead a completely new chrome element. Along with the likewise restyled headlights, this radiator trim is a major influence in the new Phaeton”s design and underlines its uncompromisingly independent character. In detail the new grille is more upright, while its stricter lines and impressive alternation of materials between polished and matt chrome make it even more striking. The horizontal linking of grille and headlights follows the Volkswagen design criteria and impressively emphasises the vehicle”s width. As a sign of its class specific to this model the Phaeton also features three-dimensional moulding of the grille and bonnet, with precise edges that carry the grille”s heightened expression of quality on into the sculptured contours of the vehicle body. Once again in the centre of the grille is the classic VW badge, which now – despite integrating the ACC (automatic distance control) system”s radar sensors – has a new-look surface design.

To the left and right of the grille are new Bi-Xenon headlamps, which are standard across the range. Integrated within them are cornering and adaptive lights. Not just in visual terms, but from a technical perspective too, this is a whole new generation of headlamps. Firstly, the indicator and adaptive cornering lights are highly visible and stylistically striking LEDs. Secondly, as with the new Touareg, the Phaeton will also be available with optional Dynamic Light Assist. Using a camera integrated into the rear-view mirror, this complex technology “˜detects” other road users and regulates illumination of the carriageway accordingly (see separate section on Dynamic Light Assist).

The bumper has also been redesigned in keeping with the radiator grille and headlamps. Here too horizontal lines form the guiding principles of the new design. Even the fog lamps have been designed as narrow, horizontal LED strips. Last but not least, the bottom final section of the bumper is now also colour-coordinated with the car body. Compared to the previous model the new generation Phaeton thus looks even sportier and more imposing on the road.

Also modified, the back of the car underlines this impression. The design team decided here not to change the classic, clear and powerful basic style that this area has always had, but instead to develop new LED rear light clusters. Each cluster features dotted lights and an M-shaped LED strip. The result is an unmistakable, elegant look both in daylight and at night. Also new is the VW badge – now likewise in 3D format – on the boot lid.

As at the front, the rear bumper has also been redesigned. It now has a new, three-piece chrome bar and the section of the bumper trim near the road is now also colour-coordinated with the car body. The same goes for the bottom section of the side skirts. Also noticeable in silhouette view are modified side trim strips, narrower LED indicators in the wing mirrors and new 18-inch (“˜Experience”) alloy wheels.

Phaeton interior

The Phaeton”s interior ranks as one of the most elegant, high quality and comfortable in the entire premium class. The 4-zone air-conditioning system, for example, that works totally free of any draughts, and the award-winning ergonomic 18-way seats are unsurpassed. All of the Phaeton interior”s functions are also intuitive to use. In addition to the version with three rear seats (5-seater), the limousine can be optionally ordered with two electrically adjustable individual seats (4-seater). Furthermore a version of the Phaeton is also available that is twelve centimetres longer. Meanwhile, the limousine can be almost infinitely personalised with a wide range of leather, alcantara and wood trim, plus optional equipment such as a fridge or multimedia systems from Volkswagen Exclusive. This also applies to the completely redesigned multifunction steering wheel. It can be ordered either in leather or in a wood/leather combination matching the relevant wood trim features.

Information and entertainment systems

The intuitive nature of the Phaeton”s controls has been fully transferred to the new generation of radio and navigation systems (RCD 810 and RNS 810). Equipped with an 8-inch touchscreen, the systems form a functional unit with the air-conditioning and multimedia controls.

Use of online services: Volkswagen is for the first time offering an Internet-based Google function in the new Phaeton as a map display add-on for the RNS 810 radio navigation system with 30-gigabyte hard drive. The relevant data gets loaded onto the system over the Internet via mobile telephone and a proxy server specially set up for the purpose. The visualisation on the touchscreen”s display is the same as the Google Maps “˜Satellite” view familiar from the conventional Internet and equivalent to the iPhone”s “˜Hybrid” view. In the Phaeton the satellite images naturally get supplemented by the navigation system”s appropriately highlighted route recommendation.

Particularly interesting in this feature are the POIs (points of interest) that can be accessed. Addresses, tourist sights, businesses, sports venues, doctors” surgeries and restaurants integrated within Google can be selected in seconds and transferred directly into the route navigation. In perfect conditions the system loads the data via UMTS connection. The telephone itself gets completely integrated into the system via remote SIM access profiles (rSAP). Alternatively, anyone who wants to use a mobile phone with hands-free profiles (HFPs) can also do this linked up with the new Phaeton (in this case Google is disabled). In HFP mode phones that are “˜Phaeton compatible” include, for example, Apple”s iPhone.

Road sign recognition: However the latest generation Phaeton”s information and entertainment system can do even more! By virtue of the camera integrated in the rear-view mirror the Phaeton now detects road signs and shows the relevant information on the system”s touchscreen and/or the multifunction display (between speedometer and rev counter). It displays not only the maximum permitted speed but also any important additional information (e.g. “˜10pm – 6am” or “˜When wet”). The system will also be able to alert drivers to overtaking restrictions ““ the first vehicle in the world to do so!

For the RNS 810 radio/navigation system further add-on options are also available. These include a rear-seat multimedia entertainment system (the High End) and a 1,000-watt sound system with digital 12-channel amplifier from hi-fi specialists Dynaudio.

Electronic assistance systems

The Phaeton”s electronic assistance systems include Dynamic Light Assist (dynamic main beam control), ACC (automatic distance regulation), Front Assist (surroundings monitoring) and Side Assist (lane change assistance). A tyre pressure control system also provides standards of safety.

Dynamic Light Assist in detail: Volkswagen is introducing for the Phaeton a new optional camera-based main beam control system called Dynamic Light Assist, which represents a major technical innovation in passive safety. Linked in with a camera integrated behind the windscreen the system keeps the main beam modules of the standard Bi-Xenon headlamps permanently on. It merely masks the areas of each beam that it calculates could potentially disturb other road users. For the driver this means appreciably more light, clearly enhanced safety and a more relaxing drive. The function is achieved by an additional aperture between the reflector holding the Xenon bulb and the lens. Combined with an intelligent, lateral tilting of the complete module (via the cornering light function) and individual control of the left and right headlights, this additional aperture arrangement enables the light source to be masked only in those areas that could otherwise cause other motorists to be dazzled.

Thanks to the front camera the cornering light control system detects the exact position of the vehicle in front and at speeds of 60 km/h or more “˜pushes” the cone of light up to the rear of the vehicle or even to its side and on past it ““ without dazzling the driver. The increase in safety and driver convenience provided by Dynamic Light Assist is considerable and can be ranked on a par with that achieved at the time by the introduction of Xenon technology.

ACC and Front Assist in detail: Automatic distance regulation (ACC) relieves the driver of the burden of active braking and acceleration. ACC significantly improves driving comfort and passive safety, especially on longer motorway journeys. At the same time the system (when activated) ensures adherence to the legally prescribed minimum distance from the vehicle in front.

An integral component of ACC is Front Assist. This ACC extension is designed to help prevent rear-end collisions. Using a radar sensor, the system monitors the distance to the vehicles in front of the Phaeton. If this is becoming too short, the system alerts the driver in two stages. At the same time the vehicle is prepared for possible emergency braking by the driver. Even before certain situations arise, Front Assist takes preventative action by putting the brakes into a preconditioned status that otherwise only gets activated when the brake pedal is pushed. The system thus acts as a means of reducing the car”s stopping distance.

Automatic distance regulation is operated via relevant buttons on the redesigned multifunction steering wheel. It is operated in many aspects in the same way as the cruise control system. With ACC enabled the car automatically slows down (if necessary to a stop) and speeds up within a speed range set in advance by the driver. ACC can be switched on at speeds of between 30 and 200 km/h. The system then uses radar to detect any traffic within an angle of 12 degrees travelling up to 200 metres in front of the Phaeton. ACC is enabled and disabled via an ON/OFF button on the left of the multifunction steering wheel. All of the driver assistance systems, including ACC, can also be switched on or off simultaneously by pressing a button in the centre of the indicator stalk for more than a second. The ACC also gets disabled as soon as the driver pushes the brake pedal. The system can be switched back on via the “˜Resume” button on the steering wheel. It then continues to use the desired speed set prior to it being disabled.

The key information about the automatic distance regulation system can be seen quickly and clearly laid out on the multifunction display.

Side Assist in detail: Another assistance system in the Phaeton is the lane change assistant (Side Assist). At speeds of 60 km/h or more this system monitors the area behind and to the side of the Phaeton via radar sensors in the rear bumper (one sensor each for the area to left and right) and indicates via a warning light in the wing mirror frame any risk of potential collision. The area monitored by the sensors covers a distance of around 50 metres to the rear and 3.6 metres to the side of the car.

If Side Assist detects a critical situation to the left or right of the Phaeton and the driver has not switched on the blinker to indicate a change of lane, the warning light in the wing mirror frame comes on to draw attention to the special traffic situation. If, however, the driver turns on the indicator while there is traffic in the adjacent lane, the light flashes four times to warn of the potential danger. The brightness of the warning lights can be adjusted to one of five levels via the multifunction display. In an interesting interlinking of the car”s systems the ambient brightness detected at any given time by the rain and light detection sensor gets automatically taken into account in determining the brightness level.

- By: Omar Rana

Speaking to the press at the 2009 Frankfurt Motor Show, Volkswagen Group of America’s CEO, Stephen Jacoby, said that the company is considering bringing back the Phaeton luxury sedan back to the United States with a diesel powertrain. He said that Volkswagen is eager to reverse the decision to pull the slow-selling $70,000 plus sedan from the U.S. market.

“I have to admit that it was a mistake to take this car out of the market,” Jacoby said. ”We think that the Volkswagen brand is a good place for this. We are looking at various alternatives for the re-launch of Phaeton.”

He said that during the Cash for Clunkers program, there was a strong demand for diesel and that a diesel Phaeton might work as a high-tech, fuel-efficient sedan in the U.S., reports Automotive News.

We’re guessing pricing will remain around $70,000 or will go up even more. Launched in 2003, Volkswagen sold just 1,939 units of the Phaeton in 2004 before yanking it from the market by 2007.

- By: Omar Rana

Unlike other automakers, Volkswagen of America has managed to stay out of the spotlight during the recession. However, the automaker has a lot going on for the next three years. The company is investing $4 billion to build an assembly plant in Chattanooga, Tenn., and $1 billion to expand its Mexico facility to start producing a new model.

Stefan Jacoby, president and CEO of Volkswagen of America, recently sat down with the Detroit News to talk about Volkswagen’s future product line here in North America.

When asked why Volkswagen has decided to build a brand-new mid-size car for the U.S. market since the Passat indirectly fills the gap, Jacoby said that “the Passat is a European midsize sedan, and it fits in the competitive set in the European market. But for this market, the vehicle is too small, and it is almost knocking at the doors of the premium segment. That’s not where the volume is. What we need to do is improve our competitiveness in pricing.”

Jacoby said that besides the mid-size car to be produced in Tennessee and the new compact in Mexico, there are plans to offer an entry-level model like the Polo. He said that Volkswagen of America is also studying another SUV and is planning to invest a second product for Chattanooga, either a compact SUV or another SUV model.

Volkswagen will also have another sedan above the new midsize sedan, a competitor to the Avalon for Toyota.

“That’s our strategy, to have a lineup ending with the Phaeton. We will bring the Phaeton back to the market.”

Wait a second… did he just say the Phaeton is coming back?

- By: Kap Shah

Source: Detroit News

We’ve been hearing rumors about Volkswagen offering a redesign to the Phaeton flagship sedan for quite some time now. According to Evo, before Volkswagen brings out a redesign the Phaeton it will offer a facelifted model.Visual upgrades will include a new front bumper, new grille and headlight units and slightly redesigned taillights. Sources say that Volkswagen may offer a huge V10 or V12 TDI.

As for the redesign, don’t keep your hopes up for anything until 2011.

Head over to Evo for the fully spy shots.

- By: Mo Eladawy