White Roof Radio #230

Guys the VW Phaeton sedan was an impressive luxury sedan, but unfortunately, it was an answer to a question no one asked. Dr. Ferdinand Piech was the engine behind the development of this vehicle but its fervent development also caused the “Bread and butter” VW models to fall behind the times and quickly become surpassed by its competitors (Not to mention all the quality and dealer network problems that were left unchecked by the VW Group).

The Phaeton was manufactured in an all glass factory in Dresden, Germany. An impressive facility. It looks more like a science fiction lab than an actual car factory. Workers wearing white lab coats, gloves, not a spec of dust in the air. Indeed VW went too far in their obessession to become the Audi, BMW and MB alternative….

And hence, this is the biggest problem with the Phaeton. VW management, in their misguided and often compulsive business decision making, made an attempt to cannibalize already sagging Audi sales. The Phaeton is basically an Audi A8 luxury sedan. What was the point of offering a $100K VW sedan pitted against the more established Audi offering? No one knows, but “mad man”Dr. Piech believed (And he still does) that VW has all it takes to become a full fledged luxury car brand alternative.

Long story short, the Phaeton was a total sales flop in the US and elsewhere. It is an impeccably built automobile with one of the worst residuals in the market (Worst than Audi’s). No one in their right mind wanted to drop over $70K for a luxury car with VW badges and the same shoddy customer service VW dealers are known for. As a luxury car owner, who you want to share the same customer waiting lounge with Beetle, Golf and Jetta owners? That was the big problem VW could not overcome. Great car, tremendous image problem. VW is the “Car of the people” not the “Car of the chosen few”.

In recent weeks, the new VWOUSA preseident has been quoted as wanting to bring back the Phaeton to the American market. VW dealers are scratching their heads at VW’s top management persistance in shoving down their throats with the “white elephant”known as the Phaeton.