Volkswagen Diesels, Phaeton, Small SUV Maybe Coming to US

Volkswagen has said that it wants a more "Americanized" lineup, and to that end will be offering more diesels engines in the US and may be bringing back its Phaeton model.

Automotive News Europe reports that Volkswagen wants to see its sales increase to a 5 percent market share of 800,000 units by 2018, up from a 2.5 percent market share of 324,402 in 2011. The company was no doubt encouraged by the first half of 2012, when its sales rose 35 percent over the same period last year to 208,725 vehicles.

Car industry observers predict that Americans will search out diesels in greater numbers, and VW has already seen this reflected in the demand for the "clean diesel" engines it offers for its Passat, Golf, Jetta, Jetta SportWagen, and Touareg.

Rainer Michel, vice president of product marketing and strategy for Volkswagen of Amerca, told Automotive News Europe that he thinks that 30 percent of Volkswagens sold can be diesel, up from the current 20 percent. 

Expressing what seems like little more than a personal fantasy, Michel also told the auto blog that he would like to see Volkswagen produce a new SUV, of a size between the Tiguan and the Touareg. The car would be have to built on the North American continent, he say, in order to be priced competitively.

Currently, Passats are made in Tennessee, while Jetta and Beetle are made in Puebla, Mexico.

That car companies realize Americans like fuel-efficiency and SUVs is nothing new, but what is generating some surprised buzz in automotive media is that Volkswagen is mulling bringing the Phaeton back to the US.

The large sedan was imported from 2004 to 2006, but sold less than 2,500 units, far less than the company expected. It was intended to compete with Mercedes and other large luxury sedans (Mercedes had encroached on Volkswagen's territory by introducing the small, low-priced A-Class), and had a corresponding price tag.

Americans, it seems, did not want to pay a premium price without getting a premium badge on the front grill.

Does Volkswagen expect things to be different this time around?

Rainer Michel was cautious in his talks with Automotive News Europe, saying that a premium car is necessary to Volkswagen's capturing a 5-percent market share, but that assiduous brand positioning will have to be carried out before the Phaeton can become a viable seller on the US market.    

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