Was It Just Styling or Was the Phaeton a Mistake Altogether?

One of the nicest new entries in the luxury car segment this year is Volkswagens new Phaeton. Of course, with a base price of $64,600 that stretches out to $79,100, not including much more expensive $79,900 W12 model that pushes $95K when fully loaded, there havent been a lot of takers.

To the common layperson VWs lack of success in the high-flying luxo market doesnt come as a surprise. Rather, most consumers who are unaware that the German economy car brand is now purveying luxury are aghast that its first entry is priced almost $10,000 more than the equivalent Lexus LS 430. Add up the Phaetons standard features and it becomes more apparent why its price is so

Add up the Phaetons standard features and its base price of $64,600 seems almost reasonable, but that doesnt mean its an easy sell. (Photo: Shawn Pisio, American Auto Press)

With its nondescript styling in mind, British monthly magazine CAR reported in its August issue that Volkswagen AG Chief Executive Bernd Pischetsrieder believes his companys previous management made a mistake when it designed the car as a sedan.

"The Phaeton fails to sell because it is

Volkswagen CEO Bernd Pischetsrieder has blamed the Phaetons lackluster sales on its indistinctive styling, a decision made by the marketing department to make the car more conventional than the original Concept D prototype which featured a sloping hatch-like rear quarter design. (Photo: Volkswagen AG)

"It will definitely not be a normal saloon," added Pischetsrieder, making mention that originally in concept form the designers and engineers had conceived it to include

In the North American market, the VW luxury car has had a very rough first six months. (Photo: Shawn Pisio, American Auto Press)

Just how much of a mistake was it? If you to go by Canadian sales for the month of June 2004 alone it would look like a blunder of major proportions, being that only 2 were sold across the country. In comparison 96 BMW 7-Series were sold in June. The Phaeton reached what looks to be its "critical mass" in Canada during the month of April, when it achieved a total of 10 units sold. But on

With over $186 million invested in the Phaetons production plant, and somewhere between $350 and $500 million spent on developing the car, 150 units sold in a month isnt going to cut it. (Photo: Volkswagen AG)

In the U.S. sales are no better, at least on a per capita basis. But according to Len Hunt, speaking to the media during the March 1st announcement of his promotion to Vice President in charge of the Volkswagen brand in the United States and Canada, the Phaeton is beginning to find its audience. Where buyers are more brand-conscious, such as on each coast, the full-size VW hasnt done that well, but the VP said in the middle of the country, where

For Volkswagen CEO Pischetsrieder to come clean with the Phaetons critics is really saying something. (Photo: Shawn Pisio, American Auto Press)

"Youve got to take a long-term perspective. I think the Phaeton is a wonderful vehicle technologically." Hunt added, "An entry in the high-luxury segment needs a fair amount of time. Its the most conservative part of the market where people take the longest to accept a new car." He continued, "So far Phaeton sales are running about 150 units per month, which is quite adequate."

Adequate for a niche automaker such as Britains boutique sports car builder TVR or maybe Morgan, but for a mainstream Volkswagen product, being produced in a $186 million dedicated "transparent" Dresden factory where

Product quality problems and questionable brand strategies have really set Volkwagen back in recent years. (Photo: Shawn Pisio, American Auto Press)

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