Volkswagen CEO Pischetsrieder Says Phaeton Styling was a Mistake

Just how much of a mistake was it? If you to go by Canadian sales for the month of June 2004 alone it would look like a

In the North American market, the VW luxury car has had a very rough first six months. (Photo: Shawn Pisio, American Auto Press)

blunder of major proportions, being that only 2 were sold across the country. In comparison 96 BMW 7-Series' were sold in June. The Phaeton reached what looks to be its "critical mass" in Canada during the month of April, when it achieved a total of 10 units sold. But on average, VW has only managed to sell about 6 cars per month during the first six months of the year for a total of 35 above the 49th parallel.

In the U.S. sales are no better, at least on a per capita basis. But according to Len Hunt, speaking to the media during the March 1st announcement of his promotion to Vice President in charge of the Volkswagen brand in the United States and Canada, the Phaeton is beginning to find its audience. Where buyers are more brand-conscious, such as on each coast, the full-size VW hasn't done that well, but the VP said in the middle of

With over $186 million invested in the Phaeton's production plant, and somewhere between $350 and $500 million spent on developing the car, 150 units sold in a month isn't going to cut it. (Photo: Volkswagen AG)

the country, where consumers size up the car on its own merits rather than just the badge, it's doing better.

"You've got to take a long-term perspective. I think the Phaeton is a wonderful vehicle technologically." Hunt added, "An entry in the high-luxury segment needs a fair amount of time. It's the most conservative part of the market where people take the longest to accept a new car." He continued, "So far Phaeton sales are running about 150 units per month, which is quite adequate."

Adequate for a niche automaker such as Britain's boutique sports car builder TVR or maybe Morgan, but for a mainstream Volkswagen product, being produced in a $186 million dedicated "transparent" Dresden factory where workers wear white gloves to protect panels and components as they assemble Volkswagen's crème de la crème sedan, a car which industry analysts wager cost the German brand between $350 and $500 million to develop, 150 units per month doesn't quite cut it.