Spending more money on a new Phaeton has been viewed as contradictory in light of VW’s cost-cutting strategy. The company aims to save nearly $6 billion USD in operating costs by 2017. The Phaeton, meanwhile, has brought an estimated loss of more than $31,000 USD per unit over a decade, according to Bernstein analyst Max Warburton.
The redesigned flagship sedan is expected to be built upon VW Group’s MLB platform, shared with the next-generation Audi A8, with a choice between six- and eight-cylinder engines in the US. A hybrid drivetrain with up to 400 horsepower has also been mentioned in rumors.
Corroborating earlier reports, unnamed sources have told Reuters the company will bring the revamped Phaeton to market by 2017 or 2018.
It is unclear if the company expects to make a profit from the new model, or if it believes the luxury car will be worth the expense to serve as a technology showcase that attracts more buyers to its mainstream offerings. The Mercedes-Benz S-Class has been mentioned as a benchmark.
The Phaeton is expected to carry a price tag of more than $86,000, however analyst suggest potential buyers will be wary of buying a VW-badged luxury sedan that costs nearly as much as an S-Class — and more than the Audi A8 — regardless of its features.
Leave a Reply