VW Phaeton: The Car of the Future

Robert Farago
by Robert Farago

With so many superb high-end sedans for sale, I'd be hard-pressed to name the automaker building the world's best luxury car. But I'll tell you which one makes the best chocolate cake: Volkswagen. At VW's 'Glass Factory" in Germany, a PR flackling served-up a Schwarzwaelder Kirschtorte whose cherry-flavored choctasticness established an insurmountable standard for the field. The same could not be said for the car being built below. The Phaeton was doomed from day one, minus the number of days between the moment of conception and the first commercial example. And yet, despite its inevitable withdrawal, the Phaeton may prove to be one of the most important cars of its time.

When the ghetto fabulous Bentley Continental GT made its debut, VW's boutique brand took great pains to distance their erstwhile British sedan from its German roots. But there was no getting around the fact that the Conti's rap sheet included some hard time on the Phaeton's platform. The baby Bentley's mighty mill was a twin-turbo version of the W12 engine powering the big Vee Dub. Should [all] US Phaeton owners pile into a modern Bentley, they'd immediately recognize the swankmobile's climate control and air suspension systems. By the same token, the current Audi A8 owes much of its character to its humble (though pricey) predecessor.

It's also worth noting that the Phaeton marked a return to form for German engineering. The luxobarge's windshield wiper blades rest on alternate sides to create even wear. The sunroof's lip spoiler adjusts at speed to prevent drafts and harmonic distortion. The climate control system opens vents for rapid cooling, then closes them when the desired temperature arrives (switching to indirect air flow). At a time when even Mercedes had lost the plot, the Phaeton's build and materials quality were beyond approach. I mean, reproach. For those of us who wondered if the Germans had lost their manufacturing mojo, the Phaeton kept the faith alive.

Of course, none of that makes the Phaeton particularly important. You might even call the ridiculously-badged, absurdly-priced Phaeton automotive cocaine: a sign from God that VW was making too much money. The model's real contribution to the future of the automotive industry lies elsewhere, well away from the greasy bits. It was the Phaeton's sales and marketing that separated the machine from the dozens of Dodos (Chevrolet SSR anyone?) launched by overly-adventurous automakers.

German Phaeton buyers were invited to the imperious Glass Factory to spec-up their car. In VW's Customer Experience Center, perched high above the former Allied bombsite known as Dresden, café and kuchened customers stroked sumptuous leathers and glassine veneers. They twiddled a digitized table to select an ideal blend of exterior and interior colors and the appropriate rear accommodations (dual thrones or bench). After their chariot was built, these automotive patrons returned to… an empty room. At the push of a button, accompanied by symphonic swelling, their custom built Volkswagen Phaeton rose from under the floor. A specialist guided the appropriately awed owner through the Phaeton's various functions. Then the outside wall rolled back and the customer drove their car into the parking lot and onto the street.

Although VW's Phaetonology shared some of its key characteristics with Japanese dealer techniques (which are driven by a lack of urban real estate), the Germans elevated customer contact to Wagnerian levels, and blazed a trail for US sales. It was, in a word, genius.

First, there were no cars. Why anyone selling an expensive product would want potential customers to contemplate a large number of them is beyond me; "pile 'em high and sell 'em cheap" is programmed into us on the genetic level. Second, Phaeton customers were isolated, indoctrinated and, most importantly of all, relaxed. The average car dealer's showroom is more uncomfortably exposed than a public urinal and less relaxing than a dentist's chair. Third, customers customized their car. Their detailed selections bonded Phaeton owners to both their vehicle and the company providing it. And fourth, the handover process– THE critical moment in the entire sales process– was appropriately dramatic, bonding Phaeton owners to both their vehicle and the company providing it.

The retail end of the American automotive business hasn't changed since the turn of the century– two centuries ago. Clothes, hardware, music, food– there isn't any other retail sector that hasn't been revamped and revolutionized in that time. The Phaeton gave VW a better way to sell cars. MINI has moved in that direction. And now Audi has a chance to make it happen. Audi of America's Executive Vice President Johan de Nysschen recently announced that his company will create regional distribution hubs to store, maintain and distribute cars 'within 48 hours.' Why not keep all but single examples at the hub, change the dealerships to [smaller] 'Experience Centers,' customize customers' cars at the hub, send 'em to the dealer and sex-up the handover procedure? I reckon it'd be a piece of cake.

Robert Farago
Robert Farago

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  • Alan My view is there are good vehicles from most manufacturers that are worth looking at second hand.I can tell you I don't recommend anything from the Chrysler/Jeep/Fiat/etc gene pool. Toyotas are overly expensive second hand for what they offer, but they seem to be reliable enough.I have a friend who swears by secondhand Subarus and so far he seems to not have had too many issue.As Lou stated many utes, pickups and real SUVs (4x4) seem quite good.
  • 28-Cars-Later So is there some kind of undiagnosed disease where every rando thinks their POS is actually valuable?83K miles Ok.new valve cover gasket.Eh, it happens with age. spark plugsOkay, we probably had to be kewl and put in aftermarket iridium plugs, because EVO.new catalytic converterUh, yeah that's bad at 80Kish. Auto tranny failing. From the ad: the SST fails in one of the following ways:Clutch slip has turned into; multiple codes being thrown, shifting a gear or 2 in manual mode (2-3 or 2-4), and limp mode.Codes include: P2733 P2809 P183D P1871Ok that's really bad. So between this and the cat it suggests to me someone jacked up the car real good hooning it, because EVO, and since its not a Toyota it doesn't respond well to hard abuse over time.$20,000, what? Pesos? Zimbabwe Dollars?Try $2,000 USD pal. You're fracked dude, park it in da hood and leave the keys in it.BONUS: Comment in the ad: GLWS but I highly doubt you get any action on this car what so ever at that price with the SST on its way out. That trans can be $10k + to repair.
  • 28-Cars-Later Actually Honda seems to have a brilliant mid to long term strategy which I can sum up in one word: tariffs.-BEV sales wane in the US, however they will sell in Europe (and sales will probably increase in Canada depending on how their government proceeds). -The EU Politburo and Canada concluded a trade treaty in 2017, and as of 2024 99% of all tariffs have been eliminated.-Trump in 2018 threatened a 25% tariff on European imported cars in the US and such rhetoric would likely come again should there be an actual election. -By building in Canada, product can still be sold in the US tariff free though USMCA/NAFTA II but it should allow Honda tariff free access to European markets.-However if the product were built in Marysville it could end up subject to tit-for-tat tariff depending on which junta is running the US in 2025. -Profitability on BEV has already been a variable to put it mildly, but to take on a 25% tariff to all of your product effectively shuts you out of that market.
  • Lou_BC Actuality a very reasonable question.
  • Lou_BC Peak rocket esthetic in those taillights (last photo)
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