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Volkswagen Phaeton Returning To USA

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Detroit MI July 16, 2013; The AIADA newsletter reported that Volkswagen AG plans to bring back the Phaeton luxury sedan to the United States as the carmaker looks to reignite flagging growth.

According to Automotive News, the Phaeton, the brand's most expensive model, could be shown to U.S. consumers at the Detroit auto show in January as VW prepares the car's return after pulling it seven years ago because of weak sales. The reintroduction, which would complement the rollout of new SUVs, is aimed at showing off VW's engineering prowess as the lift from the mainstream Passat sedan fades.

"A brand as large as Volkswagen needs a halo project in the upscale segment," CEO Martin Winterkorn said earlier this month, confirming that the Phaeton will return to U.S. showrooms. "We've seen what happens to brands that don't have that kind of project."

VW’s U.S. comeback is part of a plan to spend $5 billion over the next three years to roll out new models and boost sales in the United States, where deliveries have started to slip after a two-year burst following the 2011 rollout of the Passat and Jetta sedans that were redesigned for American tastes.