VW CEO Predicting 3,500 Phaetons Sold in 2004 Despite Slow European Sales
Few new model introductions have come under as much criticism as Volkswagen's new luxury flagship. The USD$65,215 Phaeton has received rave reviews from the automotive press, but there has been concern from investors and industry analysts over the model's business case.
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| Critics are questioning the need for Volkswagen's new USD$65,215 luxury flagship, the Phaeton. (Photo: Volkswagen AG) |
Most critics hardly see the need for Europe's most popular brand to not only compete with luxury carmakers the likes of BMW, Mercedes-Benz and Lexus, but also to run the risk of parasitically going head to head with its own Audi brand that features the top-tier A8.
Despite a slow initial response by European luxury car buyers, VW Chief Executive Bernd Pischetsrieder is feeling bullish about the model's prospects in North America. In a German television broadcast the VW boss stated, "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." Pischetsrieder continued that VW is targeting sales of approximately 15,000 Phaetons globally.
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| "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." (Photo: Volkswagen AG) |
To be fair to Pischetsrieder the Phaeton wasn't his brainchild, but the offspring of his predecessor, Ferdinand Piech. Piech was responsible for turning Volkswagen AG - then hemorrhaging at USD$1.1 billion a year - around to profitability after taking over in 1993. Despite Peich's early success, the company continues to suffer poorer than average reliability issues resulting in recalls and expensive warranty costs, all contributing to its current financial woes. Also, a recent onslaught of new models has reduced VW's short term profitability.