If something has shown us the history of the car is that it is completely irrational, extremely competitive and very conservative. The electric car is demonstrating it clearly. The number of brands has triggered and China wants to make a foothold on European soil. The reality is that Only Tesla seems to have found the way Correct and China is moving in Europe … but with Combustion engines.
That conservatism is not new. Raising a brand from scratch is only possible with a huge economic effortsustained and almost blind for years and years (like Tesla)with the help of state media (as Xiaomi and its association with one of the national Chinese car companies). But it is also almost impossible to change the perception that the client has of you.
Winning to the client and ascending on the ranks of the market can take decades. A good example is Hyundai and Kia that have some of the best -selling cars In our country but they had to start earning market share selling cars much cheaper than those of the competition.
But rapid movements, those who want to position a brand in a higher segment almost from nowhere or those that seek to compete with premium brands with a model that equals features but also in price is generally a call to failure.
There is a good handful of examples and the Volkswagen Phaeton is undoubtedly one of the most representative.


History of a failure
Luckily for those who like cars and unfortunately from manufacturers, the purchase of a car is irrational. It has an inevitable part of aesthetic taste but also for quality perception, affinity with the brand and construction of an image and a history based on the past.
That makes, for example, Renault fails with Vel satisf either Avantime Although they were very good vehicles that tried position yourself above the generalists. Nor has Stellantis (and before PSA) achieved return to DS to your luxury past Despite the multiple attempts.
And something similar happened to Volkswagen Phaeton. By order of Ferdinand Piëch, then president of the Volkswagen Group, the Germans wanted to assault the premium market with a Berlina that was called “The Bentley of the People”.
The intention was to stick with the Mercedes S, BMW 7 series and, curiously for being part of the group, with the Audi A8. The bet was so strong that the possibility to match (or improve) in equipment and materials to its rivals with a more adjusted price was not even tan. It was directly to resemble all fronts (also in price) and in the executives of Volkswagen they took a tortazo.
In fact, the Volkswagen Phaeton Not even was a version of Audi A8. Yes, he shared some aluminum panels with the Berlina of the four hoops, as explained in Km77 In the early 2000s, but for development it departed from a blank sheet and even The Volkswagen Dresde factory was builtknown for their Glass structure and for being the one that, discontinued the Phaeton, covers the complete electrical models of the company.
In that assault on the heavens, the Phaeton was sold above 66,000 euros for what the German triad looked from you. A Audi A8 It was sold at that time slightly below 69,000 euros. A BMW 7 series It started from 67,500 euros. He Mercedes S Yes it was significantly more expensive, starting from more than 71,000 euros.
In those early years of the new century, all German luxury Berlins shared two things: they all had versions above 120,000 euros. And they all had gigantic engines. And the Volkswagen Phaeton was not going to be less.
Its most “small” engine was already a V6 in diesel and gasoline versions. From there, it could only be dreaming. Volkswagen’s bet was also sold with a V8 4.2 gasoline, the famous V10 5.0 TDI and an endless W12 6.0 of gasoline that was sold with 420 and 450 hp versions. The average consumption of the latter was around (with the homologations of that time) 14.5 liters/100 km on average.
And of equipment, the Phaeton was not badly served: heating seats, electric with memory and massage, bi-xenon headlights, four-zone heshlyzizer, indoor in the skin topped with wood and the possibility of replacing the rear seats with two sidewalks to improve comfort.


Developing the car, therefore, was not going to be easy. At least this is attesting to 1,100 million euros that, according to Autoweekthe Germans invested in their development. From Automotive NewsHowever, they raise the figure to 2,000 million euros. But despite the expensive development and the good of the product, selling the Phaeton was not simple either. To the point that, according to this last medium, the Germans lost 28,101 euros for each unit sold.
Keep in mind that the company had made a effort huge in machinery, employees and a new factory (The Dresden crystal plant) To launch a car that would meet the quality of a vehicle of its price range.
It is said that Ferdinand Piëch delivered a series of unnegotiable requirements to put the car on the street among which was the ability to maintain the interior temperature at 22ºC circulating in a sustained way at 300 km/h with an exterior temperature of 50ºC. And all despite the car was limited to 250 km/h. Only for overestimating the capabilities of the car and that there was no open door to the client’s disappointment.
But the market did not respond despite the fact that Volkswagen reached up to 100 patents during its development. Estimates that aimed at 20,000 units sold a year were impossible to meet.
Even as the years passed. Because during the decade and a half that the car was on sale only 84,253 units were sold. Volkswagen’s most optimistic forecasts, collect in DiariomotorThey could exceed 35,000 units sold. And, as exceed, the 50,000 cars sold.
Seeing one of those people’s bentley was not as complicated as seeing a true Bentley but of course it was a rarity compared to their rivals. In a bad year, as was 2024 for the Mercedes Class S, The company placed more than 124,000 units on the market But in 2023 it exceeded 170,000 units.
On the Phaeton, in addition, another slab weighs. The V10 5.0 TDI engine that those years mounted the Berlina, but also the Volkswagen Touareg, is known for its reliability problems. His problems with turbo, distribution and electronics were relatively common. But, in addition, it was a complicated engine to repair, which still more expensive the actions on it.
And the same happens with the Pneumatic suspension. In both cases, they were a delight when they worked correctly but this last component also used to give problems and their repair could be especially expensive. It is something that stand out in Diariomotor If you are thinking of getting one of them.
The Volkswagen Phaeton was a luxury and well treated car can be an excellent car for today but it was a commercial failure for Volkswagen and a hole for the brand. And yes, it was also a hole for one of its buyers.
Photos | Volkswagen
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