The Volkswagen Phaeton: A Luxurious Dream

Who would pay $100,000 for a Volkswagen when a Mercedes-Benz S-Class could be obtained for less? It was a bold move by VW, but the timing wasn’t right. I remember seeing one for the first time at an event on Park Avenue in NYC in 2004. The black sedan looked remarkably stately for a four-door that resembled a well-fed Passat, albeit with an imposing badge on its grille.

Production and Design

The Volkswagen Phaeton was primarily hand-built in Dresden, Germany, and was produced from 2002 to 2016. However, its sales in North America were limited to just 2004 to 2006, possibly explaining its rarity on these shores. The Phaeton’s design was based on the D1 concept, a hatchback that debuted at the Frankfurt auto show in 1999.

Engine and Performance

The Phaeton shared its platform with the Bentley Continental GT and Flying Spur, and it utilized several engines that were also found in the Audi A8. In the U.S. market, buyers could choose between:

• A 4.2-liter V-8 producing 335 horsepower and 317 lb-ft of torque
• A robust 6.0-liter W-12 engine with 420 horsepower and 406 lb-ft of torque

Both engines featured all-wheel-drive. The V-8 was coupled with a six-speed automatic transmission, while the W-12 used a five-speed. Although both were limited to 130 mph, the Phaeton was engineered to glide smoothly at 186 mph.

Reviews and Experiences

Back in 2004, Automobile included a Coucou Gray Volkswagen Phaeton in its Four Seasons fleet when its headquarters was in Ann Arbor, Michigan. Robert Cumberford’s evaluation was not overly optimistic, stating:

“Irreparable. A good word for a bad condition, one that seemingly applies both to the electrical system of our Four Seasons and to the reputation of Ferdinand Piëch, who brought this magnificently irrelevant (rich) People’s Car into existence. On the plus side, the car never failed to start and never failed to deliver its driver and passengers to their destination.”

While our year with the Phaeton had its ups, it was riddled with numerous downs, leading us to believe it would make a decent used car for those willing to address its electrical issues independently.

Final Thoughts

Overall, we found the Phaeton to be not only irreparable but also inexplicable. Who was its target market, aside from Herr Piëch? Why compete with Audi’s offerings while sharing so much of the same architecture? When the Phaeton showcased class-leading trim and finish, there was a missed opportunity for superior electronics and glass quality. Considering all this, why not market it under the Horch name, which once was at the pinnacle of the Auto Union hierarchy?

The Future of the Phaeton

Today, we have the more impressive and affordable VW Arteon sedan available, with a fully loaded version costing less than the original Phaeton. Nonetheless, the idea of a resurrected Volkswagen Phaeton in an electrified form is intriguing, and it would be interesting to experience it in our fleet once again.