Audi of America CEO Fired for Criticism of Poor Selling VW Phaeton

How many Phaetons did the automaker expect to be able to sell? Looking back to November 2003 when VW AG Chief Executive Bernd

Axel Mees said, "I think Volkswagen underestimated the weakness of their brand in the luxury segment." (Photo: Shawn Pisio, American Auto Press)

Pischetsrieder was feeling bullish about the model's prospects in North America, stating in a German television broadcast, "What we can say is that next year we expect (U.S.) sales of the long version of the Phaeton of about 3,000 to 3,500", and continuing on with sales targets of approximately 15,000 Phaetons globally. That target has since been lowered to 2,500 units, which as stated above looks unlikely to be met.

Pischetsrieder himself stated that Volkswagen may have missed the target with regards to the Phaeton's design, styling it too conservatively to make a significant mark on the minds of the upper crust expected to purchase it (see automotive news archives for Jul 7, 2004: Volkswagen CEO Pischetsrieder Says Phaeton Styling was a Mistake). But while the automaker's chief executive only admitted to mistakes in styling, a bolder Axel Mees said, "I think Volkswagen underestimated the weakness of their brand in the luxury segment," to reporters attending the media launch of the Audi A6 sedan in San Francisco. He

"It can be the best car (but) I still will not buy it because it has a VW logo," added Mees. (Photo: Shawn Pisio, American Auto Press)

added, "I think they realized the Phaeton... was a step too fast into a direction they wanted to go."

Such words would have been seen as high treason in VW's tightlipped executive squad, despite the fact that he was preaching to the choir, so to speak, with most journalists present having most likely reported on the same subject with a similar leaning prior to Mees' comments.

The Audi of America CEO added, "VW overall isn't ready to offer successfully cars in that price range, whatever they do." He continued, "It can be the best car (but) I still will not buy it because it has a VW logo."