VW’s Phaeton was not a success for VW in the U.S. The company planned on only selling 20,000 of them, but they only managed to sell a quarter of that amount when they pulled the car in 2005. Even with though the car barely managed to register on the sales screen, the company is moving forward with the next version of the car.
The next 2010 Volkswagen Phaeton will use many of the same parts as the Audi A6 according to VW boss Martin Winterkorn. This means that the new car will be smaller and cheaper than the first generation. This should bring it closer to the most expensive Passat and close the current gap in the Volkswagen line-up.
VW has learned from many of their mistakes with the first Phaeton and they will not repeat them with the 2010 car. The previous car weighed too much, had poor performance and gas mileage. The VW name also does not have the same prestige as the Audi name, so it was harder for them to sell an expensive luxury car under the VW name. The new Phaeton will also not compete with the Audi A8, since the A8 will be a lot larger.
Full Story: Motor Authority