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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

Help a couple drive their 1984 Vanagon around the world

Meet Brad, Sheena and Nacho
Driving through China is a pricey proposition. The couple will need to pony up a staggering $19,514 just to cover the fees.
Brad and Sheena Van Orden are in the midst of a life-defining campaign to travel around the world, and they're doing it in a 1984 Volkswagen Vanagon custom built for the occasion. The past 15 months have seen the couple quit their jobs with Gore-Tex and drive from Arizona to the very southern tip of Argentina after spending a full two years saving and preparing for the trek. Now they're in southern Asia gearing up for the next leg of their journey.

Red Bull says VW deal in F1 now 'up in smoke'

The Volkswagen diesel scandal will likely have long-term repercussions, reverberating across the industry potentially for years to come – the likes of which we're only beginning to discover. And that could include Formula One. Now if you're thinking that VW doesn't compete in F1, you're right. Even between all of its various brands, the group has little history in post-war grand prix racing. But if was getting close. As we reported last week, the German auto giant and the Red Bull Racing team were nearing an agreement that would (or would have) seen the former take over the latter. The deal was said to include VW developing a new power unit (as the combined turbo engine and electric motor are referred to in the sport) and acquiring the multiple championship-winning team, with the energy drink company that now owns it transitioning back to a more traditional sponsorship role. It remained to be seen, though, just which of its many brands VW would choose to promote through the new program. Team principal Christian Horner, however, now says that the deal has "seemed to go up in smoke." That doesn't mean that it's off the table entirely and indefinitely, but it would follow logically that between the scandal it's currently facing, the ensuing change in leadership, and drop in stock value, the board in Wolfsburg has other problems to focus on and devote its resources. While ostensibly a logical move for Volkswagen, that would leave Red Bull in a difficult position. The Renault partnership that once led to utter domination with four back-to-back world championships has since fallen dramatically off pace. Although it impressively held on last season to come second in the championship with three race wins, it hasn't won a race yet this season – and heading into this weekend's Japanese Grand Prix, stood fourth in the standings... its worst position since 2008. "With the way the regulations are, unless you have a Mercedes or Ferrari power unit it is quite simply impossible to compete," said Horner. "And if we are not able to compete, then you have to question what is the validity of remaining in F1." If the Volkswagen deal does indeed fall through, the team will likely need to buy its power units from another supplier – with its chief rivals as the only likely candidates. Related Video: