The Volkswagen Phaeton is expensive for several reasons:
High-end manufacturing costs: Phaeton's manufacturing cost is very high. It shares a production line with Bentley, and many of the components are handmade, which not only increases production costs, but also reflects its high-end quality. The interior and powertrain of the phaeton are at the highest level of luxury cars, which require a high cost investment.
Technology & Performance: The phaeton was originally designed to be the highest class of Volkswagen sedans, and its powertrain, suspension system, braking system, etc., all used the most advanced technology at the time. For example, the Phaeton is powered by a W12 engine, which is the best in its class and provides a powerful power output.
Market positioning: Phaeton's market positioning is to compete with high-end luxury sedans such as Mercedes-Benz S-Class and BMW 7 Series. In order to compete with these competitors, Phaeton strives for excellence in design, configuration, and performance, which has also led to its improvement. Market Share Report:
Brand premium: Although the Volkswagen brand mainly produces civilian models, the Phaeton, as its luxury model, needs to reflect its brand value and the uniqueness of its products through a higher price.
Sales strategy: Phaeton's pricing strategy also reflects Volkswagen's attempt and confidence in the high-end market. Although its starting price is even higher than that of its own luxury brand, the Audi A8, a strategy that may seem incomprehensible to the outside world, it reflects Volkswagen's confidence in the quality of the Phaeton.
Sales volume vs. cost: Phaeton has failed to meet sales expectations since its launch in 2002, which has led to higher unit costs. According to reports, for every Phaeton sold, Volkswagen may lose about 200,000 yuan, which is also a factor in its high price.
To sum up, the reason why Volkswagen Phaeton is expensive is because of its high standards and high investment in manufacturing process, technical configuration, market positioning, and brand strategy. However, due to low market acceptance, Phaeton was eventually discontinued in 2016. Volkswagen Pyuton