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William Maley

VW News: Rumorpile: Volkswagen Puts Phaeton Redesign On Backburner

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Volkswagen may have put the Phaeton redesign on the back burner to improve profitability.

 

Bloomberg has learned from sources that the German automaker is looking at ways of lowering the costs of materials and production, despite a new version of the Phaeton is ready to go.

 

The Phaeton was never a big seller for Volkswagen. However, the model seemed to find a foothold in Asian markets - notably China and South Korea - in 2010 and 2011. But the fallout of the Chinese automaker and the age of the Phaeton has caused sales to drop.

 

With the possibility of Volkswagen reworking the Phaeton, this could signal a change at the German automaker from the Piech era where profit making seemed to be off the radar, to one that cares about it more.

 

It is surprising VW is sticking with the Phaeton, said Tim Urquhart, a London-based analyst at market researcher IHS Automotive. “And given the current drive to save costs at VW, it is even more lucky to survive.”

 

Source: Bloomberg


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A good decision, they should work on coming up with VWs that sell, like a crossover, or cars regular people buy.  Luxury buyers will just buy an Audi over the Phaeton anyway.

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