VW CEO confirms Phaeton to return to America

Pulling the Phaeton luxury sedan from the U.S. market in 2005 was a mistake, Volkswagen of America CEO Stefan Jacoby said last week. Most analysts would say the only "mistake" involving Phaeton was selling it in America in the first place, but apparently VW's management is ready to give it another try anyway.

The possibility was first revealed by VW spokesman Andreas Meurer smaller and sufficiently less expensive to distance itself from Audi models. Still, basic components like the car's chassis and transmissions will be borrowed from the next Audi A6, according to reports.

Sales of the last Phaeton in the United States were dismal, so it will be interesting to see what happens with VW's second attempt. The company never sold more than 2,000 Phaetons in a single year in America.