The Volkswagen Phaeton is a wonderful car, a technical wonder created by the excellent engineering skills. However, this wonder failed to capture the market. The poor sale has given a lesson to the brand, esp. in North America, by confuting the theory that a good product will sell itself.
Volkswagen started by launching the people’s car Beetle and later on set its foot in making luxury and expensive vehicles. The additional features such as airbags, emission controls and high end electronics made the prices rise high.
In the initial stage, Volkswagen competed with top-notch brands such as Mercedes-Benz especially with Mercedes A-Class for Europe in 1997. However, as Volkswagen isn’t a luxury brand, even though the Phaeton car was incredible, it looked alike Audi A8. The main point to note is that the boss of Volkswagen at that time, Ferdinand Piech ordered his engineers to incorporate ten characteristics in Phaeton.
One of the goals was to make the capacity of the car to travel at 186mph all day long simultaneously keeping an interior temperature of 72 degrees, even when exterior temperatures reached as much as 122 degrees. Likewise, all the goals set by him were lofty.
Phaeton couldn’t capture the market even in Germany, where the company had some hope.