Volkswagen Phaeton to be discontinued by 2016

MANILA: As the German automaker is going through some serious crisis, it has decided to cut down for models and variants in order to maintain the balance in this atmosphere. Volkswagen Auto Group will close down the production of the Phaeton flagship by 2016. Presently, Volkswagen Phaeton is manufactured at brand’s Transparent Plant in Dresden with the similar platform based Bentley Flying Spur and Continental GT. Phaeton was introduced in early 2002 and shared some common chassis components as Audi A8. The company is set on the virtue of cost cutting, which is also management's decision for restructuring.

About 1 billion euro plant will be closed by the mid of 2016. However, the Bentley Flying Spur will continue its production in the Crewe plant located in England. Another reason that led to closure of the plant is the downfall in the sales of Phaeton during last 13 years. The business of Volkswagen Phaeton was not going well and it wasn't profitable at all. The company has revealed the production plant will be VW’s property but the production will be kept on hold during the restructuring. Meanwhile, Jens Rothe, head of the works council of VW's operations in Saxony said that later on the plant will build new Volkswagen products and ensure employment in the coming years.

However, the temporary closure of the Dresden plant will not let the Phaeton go extinct. The Phaeton will be unavailable during the period of 2016 to 2019 but the second generation model will be launched by 2020 with all-electric power mill (as stated by VW executives). The workers employed at the Dresden plant will be relocated in other functional VW plants located in Germany.

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