Just over 4,000 units were produced last year at the state-of-the-art factory in Dresden, Germany, much less that the maximum annual capacity of the facility (26,000 units). Built especially for the Phaeton, the Dresden "transparent factory" (called like that because its walls are made of glass) hopes that the world's largest car market will save the sales of its only product.
Volkswagen is targeting sales of about 2,500 Phaetons in China in 2010, according to Winfried Vahland, the chief of VW China operations. This number would make China the number one market for the Phaeton worldwide.
"The Chinese are considered to be customers who are very critical and interested in technology. That's why we make certain that we are using the best materials and the most current innovations", said Frank Loeschmann, director of the Dresden factory, quoted by the Automotive News. The Phaeton is so important to Volkswagen in China that it has its own showrooms. The Chinese are renowned for their love of large, comfortable luxury vehicles, and the Phaeton fits the specific demands of this type of clients.
Still on sale in Europe, the Phaeton was pulled from the U.S. market in 2006 due to slow sales, but currently the bosses of VW are considering a return of the Phaeton to North America. The most important reason for its lack of success in these traditional markets is Volkswagen's poor luxury brand image. However, its platform is successfully used by Bentley Continental and Audi A8, which also share the 12-cylinder engine and other underpinnings with the Phaeton.
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