volkswagen-phaeton

Volkswagen will not be releasing the new Volkswagen Phaeton, just yet. Plans to introduce to the market the German marque’s latest flagship luxury sedan has been put on hold for now, as top executives at the company are looking to lower production and material costs first to improve profits from Volkswagen’s least-sold model, Bloomberg reports.

Apparently, a successor of the Volkswagen Phaeton is currently ready for production, however the brand is said to be revising its luxury sedan in terms of cutting related costs to raise profits from the sales of this model. Despite coming from a glass factory which is dedicated to its production, the Volkswagen Phaeton still hasn’t been very well-received by the masses due to its price tag and a rather uninterested target market.

The Phaeton came about after former Volkswagen chairman, Ferdinand Piech challenged engineers at Volkswagen to come up with a luxury vehicle that would take on the Mercedes-Benz S-Class, it didn’t bode well though – Volkswagen had sold just 4,000 units of the Phaeton last year whereas Mercedes-Benz however, achieved sales of some 100,000 units of the S-Class, at the same time.

The revision of Piech’s beloved project indicates that Volkswagen is shifting from the Piech era to train its guns on profitability instead – it’s a rarity that deserves mention seeing that Wolfgang Bernhard, a former CEO of Volkswagen was ousted from the company after he made a decision to retract the Volkswagen Phaeton from the US due to weak sales – the man behind the ouster? Piech himself.

Herbert Diess, will be facing his greatest challenge yet – to ensure the Phaeton is on the right track to financial gain and acceptance for that matter, should he emerge triumphant in this mammoth task, Diess could very well succeed Martin Winterkorn in taking over the reins as the company’s CEO.