A $100,000 Volkswagen? Really!

Then there are the cars that should never have been made. Cars that, no matter how prescient their creators, bombed because of mechanical flaws, horrible aesthetics, a complete misread of the market or all three. Vehicles that come to mind are the Edsel, Cadillac Eldorado, Chevy Corvair, AMC Pacer and Chevy Vega. I could easily make this list longer.

Well it seems the automotive elite are at it again. Mercedes-Benz, Audi and BMW all have just announced they will build small inexpensive, under $30,000 cars. Just last March I reviewed Volkswagen’s Phaeton V-8 which has a shock and awe price of just over $74,000, and was repeatedly asked, “Who in the world is going to buy a $70,000 Volkswagen?” Well, according to sales figures published in Automotive News, not many. Only 96 Phaetons were sold countrywide in June 2004 for a year-to-date total of 849. That isn’t very many considering VW sold over 126,000 total vehicles during the same time.

Imagine the reaction of my co-workers when I pulled up with my Papillon Silver W12 Phaeton. “I thought you already tested the Phaeton.”

I did, but that was the lower-priced entry-level model, this is the top-of-the-line 12-cylinder version that goes for over $105,000. “Who’s going to buy a $100,00 VW?” And so the story continues.

With a sticker price of $105,205 it’s the most expensive car I’ve ever reviewed and about five times the price of a well-equipped New Beetle. According to Volkswagen, the Phaeton is the most accessible 12-cylinder German luxury car ever. If accessible means no long waiting lines or backorders at the 225 Volkswagen dealers across the nation that sell them, then they’re correct. Two VW dealers I visited in Phoenix each had a Phaeton on the showroom floor.

Luxury cars aren’t my shtick, but if they were it’d be hard to argue about all there is to like about the “People’s Car.” With a 420-horsepower engine under the hood and all-wheel drive, the Phaeton has enormous yet gracefully smooth power and performance. However, the 335-horsepower V-8 is more than adequate, making the W12 an unnecessary excess. A $3,000 gas-guzzler tax is assessed to the W12 versus a more moderate $1,300 for the V-8 version.

On the road, the Phaeton is impressive but not dazzling. Want a more luxurious, softer, floating ride? Opt for the Lexus LS 430. Sportier handling? The 7-Series BMW takes top honors. But while this luxury-liner may not be the absolute best at all things, it is jam-packed with all the perks a driver or passenger could hope for, including an 18-way power adjustable driver seat and 16-way power front passenger seat, ventilated with A/C, heat and massage feature. Even the steering wheel and rear seats are heated. Our test Phaeton had the $1,750 optional comfort package that included massage feature, A/C, heated and power adjusting lumbar rear seats.

Oddly the electronic parking assist ($700) and keyless entry ($500) are not standard equipment in the $94,600 base price.

Sitting behind the wheel of the $105,000 Phaeton you would be hard pressed to find fault. The interior look and quality is flawlessly stunning yet not overly decadent. It oozes class, as well it should. Yet one has to give pause and ask, who, short of rock stars, professional athletes and those occupying the corner offices of Fortune 500 companies, can afford it? And will they object to a four-inch VW badge, rather than a Mercedes star, on the trunk lid?

Nothing I discovered during my weeklong test of the W12 led me to place the vehicle above the V-8 Phaeton (at $30,000 less) or the $70,000 Audi A8 L. So time will tell if VW can pull off what so many others have failed to do: change the perception of their product in the mind of the consumer.

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