Volkswagen Phaeton may return to US market

Volkswagen is considering the re-introduction of its luxury Phaeton model to the US market.
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The car will feature a TDI (diesel) powertrain which VW hopes will be a strong selling point when it reverses a 2007 decision to pull the car after four consecutive years of slow sales.

“I have to admit that it was a mistake to take this car out of the market,” said Mr Stefan Jacoby, CEO of Volkswagen Group of America. “We think that the Volkswagen brand is a good place for this. We are looking at various alternatives for the re-launch of Phaeton.”

Mr Jacoby said that strong demand for VW's diesel models during the US cash for clunkers program suggests that a diesel Phaeton might work as a high-tech, energy-efficient model.

The VW brand sold about 11,500 vehicles during the program, but it might have sold more if it had not run out of popular diesel-powered vehicles like the Jetta TDI station wagon.