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VW still set on Phaeton redux despite cost-cutting drive and losing $32k per car

While critically well regarded, the Volkswagen Phaeton has proven to be a vehicle largely unloved by luxury buyers around the world. Despite this, it refuses to die. While VW's luxury sedan hasn't been sold in the US since 2006 due to low sales here, it has soldiered on in Europe with occasional updates. As the model's long lifespan has been winding down, VW has decided to keep pushing the Phaeton into a new generation, despite in-house alternatives like the Audi A8 and Bentley Continental Flying Spur. The move might not make much business sense, but Volkswagen executives are determined to make the Phaeton work. According to market analysts speaking to Reuters, developing the next-gen luxury sedan on the MLB platform could cost as much as 650 million euros ($737 million), despite relying on the same underpinnings in the A8. It's not like the Phaeton is leading the luxury sedan sales ranks, either. Reuters notes VW produced just 5,812 of them in 2013 (the most current year with data), and from 2002 to 2012, the automaker reportedly lost 28,000 euros ($32,000) on each example sold. Conversely, Mercedes-Benz sold 103,737 units of its new S-Class in 2014, an astonishing 82.2 percent jump over the previous year. The decision to keep the Phaeton going doesn't seem to square with the VW brand's cost-cutting strategy. Boss Martin Winterkorn announced last year a plan to save 5 billion euros ($5.7 billion) annually in the coming years. That plan reportedly also includes killing off less profitable models. Apparently, VW can't just rip off the band-aid and get rid of the Phaeton. Even some VW bosses seem somewhat perplexed at the sedan's business case. When Reuters asked the company's US boss Michael Horn about selling the Phaeton here, he said. "That's a dangerous question. It's an image bearer with no relevance for volume." The next-gen Phaeton is scheduled to go on sale in Europe in 2017 or 2018, according to Reuters, which is about a year later than previous rumors. A US launch will reportedly follow in 2018 or 2019 with the plug-in hybrid and potentially even diesel versions on offer. A starting price around $70,000 is estimated. Featured Gallery 2011 Volkswagen Phaeton View 15 Photos News Source: ReutersImage Credit: Volkswagen Plants/Manufacturing Volkswagen Luxury Sedan vw phaeton cost cutting

The Civic goes hybrid, driving the Nissan Z Nismo and more | Autoblog Podcast #833

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Road Test Editor Zac Palmer. They discuss the refreshed 2025 Honda Civic and its new hybrid powertrain, a possible Ford Maverick sport truck, rumblings of a new Mitsubishi Delica, the continued growth of hybrid sales, the UAW's loss in Mercedes' Alabama plant, the VW ID.7 being delayed, Tesla Semi news and the BYD Shark headed to Mexico. They chat about Formula 1 for a moment before hopping into the reviews section. Zac's been driving the new 2024 Nissan Z Nismo, and Greg's been spending a bunch of time in the long-term 2024 Mazda CX-90 PHEV. Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast #833 Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown News 2025 Honda Civic Hybrid refresh Maverick sport truck on the way? Is Mitsubishi bringing a new Delica to North America? Hybrid sales are booming The UAW loses in Mercedes vote Volkswagen ID.7 delayed in North America Tesla Semi picks up more steam BYD Shark is headed to Mexico as a mid-size pickup Formula 1 catch-up Cars we're driving: 2024 Nissan Z Nismo 2024 Mazda CX-90 PHEV Long-Termer Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related video: Government/Legal Green Motorsports Podcasts Ford Honda Mazda Mercedes-Benz Mitsubishi Nissan Toyota Volkswagen Truck Crossover Hatchback SUV Electric Hybrid Luxury Off-Road Vehicles Performance Sedan Podcasts

Will a Phaeton EV rise from the VW Dieselgate ashes?

The Volkswagen diesel emissions scandal isn't even close to ending, but in a new announcement the automaker says it is working to rehabilitate its battered image a little bit. In a series of pledges, the German company is putting a serious emphasis on future electrification. Headlining this EV onslaught: the next-gen Phaeton will be fully battery powered. VW is still very light on details about its future flagship, and Tesla shouldn't be shaking in its boots yet. The automaker simply promises "a pure electric drive with long-distance capability, connectivity and next-generation assistance systems as well as an emotional design." According to insiders speaking to Autocar, the Phaeton potentially launches in 2020, and it might share a platform and powertrain with the production version of the Audi E-Tron Quattro concept. A new Phaeton was rumored to be nearly ready earlier this year, but the project was reportedly scrapped to cut costs. VW loses money making the current one, and sedan competes against other products, like the Audi A8. Perhaps the company sees this scandal as a perfect opportunity to revaluate the point of the vehicle. While the Phaeton EV will represent the top of VW's future lineup, electrification will appear further down the line, as well. The automaker will create a new platform called the MEB specifically for compact EVs. Promising ranges between 155 and 311 miles, the architecture will be offered across the VW Group brands and on "both passenger cars and light commercial vehicles." This electrification push will likely affect current models, too, thanks to further engineering of the MQB platform. VW wants the vehicles to support longer-range plug-in hybrids, mild hybrids, and EVs with 186 miles of distance. Since the architecture is already on sale, presumably these are the first vehicles to benefit from the new strategy. VOLKSWAGEN BRAND BOARD OF MANAGEMENT TAKES STRATEGIC DECISIONS Accelerated implementation of the efficiency program creates room for reorientation Streamlined processes leverage further cost-saving potential, including cuts in fixed costs Investments to be reduced by 1 billion euros per year compared with planning – combined with prioritization of projects for the future Product decisions formulated New Phaeton will be electric New Modular Electric Toolkit planned Wolfsburg,October 13, 2015 – The newly-formed Volkswagen Brand Board of Management took further strategic decisions at a special meeting. CEO Dr.