Volkswagen Phaeton was the brainchild of the chairman of the Volkswagen, Ferdinand Piëch who wanted his engineers to come up with a car that would directly compete with BMW and Mercedes Benz. This was the reaction to the Mercedes’s resolution to compete with VW with a low priced A-Class car. This was also a move to maintain the brand image of Volkswagen because the costly versions of lower models such as Golf GTI were costing as much as other prestige brands of the same size. Volkswagen already had a full size luxury Audi 8 in the competition, but it was sport oriented like the Lexus LS and Mercedes-Benz S class. The Phaeton was hand assembled at the transparent factory located in Dresden, Germany. Since it is manufactured as a non-luxury brand it is more a competition to Toyota century and Chrysler 300.the Volkswagen D1 platform on which the Phaeton was built was also shared by Bentley Continental Flying Spur and Bentley Continental GT.
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