Why did the Phaeton stop production?

[SanLeo]

Phaeton was discontinued due to low sales. Here is the relevant content introduction: 1. Vehicle length: The Volkswagen Phaeton has a length of 5.175 meters. The Volkswagen Phaeton is a large premium luxury sedan produced by German Volkswagen, representing the perfect combination of classic craftsmanship and modern cutting-edge technology. 2. Interior: The Phaeton also features a luxurious interior without lacking personality. When you truly enter the Phaeton's cabin, apart from the Volkswagen logo on the steering wheel, you won't find familiar Volkswagen elements. Premium wood veneers are used on the horizontal dashboard center, center console, and doors, while chrome metal trim adorns the edges of the instrument cluster and the clock in the center of the dashboard.

[VanAurora]

I've thought a lot about the discontinuation of the Phaeton. The key issue is that the Volkswagen brand couldn't support such an expensive car. Think about it - people spending a million yuan on a car definitely care about prestige, and the Volkswagen badge just doesn't convey enough status. Although the Phaeton used premium materials and was entirely hand-built, its understated design made it look like an elongated Passat, which made many wealthy buyers hesitant. Moreover, within the Volkswagen Group, the Audi A8 occupied a similar market position, creating an awkward internal competition. With consistently poor global sales and the exorbitant costs of the Dresden Glass Factory (losing money on every unit produced), plus the current SUV boom and sedan market contraction, discontinuing it was a necessary move to cut losses. This car was born at the wrong time - no matter how strong its technology was, it couldn't overcome market realities.

[LeColton]

The Phaeton was like a promising seedling planted in the wrong soil. Volkswagen originally intended to use it to break into the luxury market, but the brand positioning and product character were completely mismatched. Luxury car buyers only had eyes for the likes of Mercedes-Benz and BMW—even with its pure wool seats and quad-zone climate control, the Phaeton couldn't shake the embarrassment of being mistaken for a Passat. Its platform was too unique, making cost reduction impossible, and the company lost money on every unit sold. In its worst year, global sales barely reached a few thousand units, not even a fraction of the Porsche Panamera's figures. The 2016 discontinuation ultimately came down to a business decision, as the group needed to allocate resources to the Touareg and its shift toward electrification. It's a shame about its top-tier air suspension and W12 engine, which once raised the bar for D-segment standards.