The next generation Volkswagen Phaeton is practically done and ready, but production has been delayed as the company grapples with pulling out cost of the sedan.
The car which starts at &euro89,650 (US$98,990) is seen as a pet project of former VW chairman Ferdinand Piech. Piech was ousted from his position in April after a power struggle with CEO Martin Winterkorn.
Without its key protector around, the Phaeton hasn’t been spared from Volkswagen new focus on improving margins across its entire vehicle line. Currently it’s profit margin on each vehicle is 2.7 percent, while PSA Peugeot Citroen is at 5 percent.
Just 4,000 Phaetons were hand made last in a glass walled special factory in Dresden. Mercedes-Benz sold over 100,000 S-Classes in the same time.
Source: Bloomberg
