In a risky new run at the luxury market, Volkswagen is bringing its most powerful production car to the US with a price tag of nearly 100,000 dollars, prompting some doubts about its strategy.
A 12-cylinder version of Volkswagens Phaeton sedan went on sale this week at 225 US dealerships with a base price of 94,600 dollars, according to Gerd Klauss, chief executive of Volkswagen of America.
The car comes stocked with luxury features, including a mechanism installed in the seats that provides a 10-minute back massage, VW executives say.
"As the ultimate flagship of the Volkswagen brand, the Phaeton W12 is quite simply one of the best-equipped cars in the world and defines in a fresh way what German luxury cars can be without the stuffy, traditional pretences," a Volkswagen statement says.
The six liter, 420-horsepower engine accelerates to 60 miles per hour (100 kilometres per hour) in 5.9 seconds, according to VW.
It features all-wheel drive, electronic stabilisation, automatic temperature and humidity controls, eight airbags, leather seats and wood trim - a far cry from the bare-bones Volkswagens of the past.
Other amenities include Xenon high-intensity headlamps; a 12-speaker sound system; heated, leather-wrapped steering wheel; an oversized glass sunroof; and an integrated "infotainment centre" featuring a colour screen that operates a navigation system and onboard trip computer.
The car will go against high-priced import offerings such as the Mercedes-Benz S Class and BMW 7-Series.
Currently, the company sells a 65,000-dollar version of the Phaeton, equipped with a V-8 engine.
While high-priced offerings from Volkswagen's German counterparts, and its own Audi luxury brand, have been well received in the United States, some analysts question whether Volkswagen can be successful selling such exclusive cars under the VW moniker, which has more often been associated with low-priced Beetles than high-line luxury saloons.
"It's a lot to pay for a Volkswagen you're not likely to be disappointed with what you get. Just don't expect BMW or Mercedes-like resale value," said Ed Hellwig, editor of consumer research site Edmunds.com.
"Volkswagen is taking a risk by introducing its first true luxury vehicle."
Volkswagen officials insist the luxury car will elevate the VW brand image and don't anticipate having a problem convincing American buyers to pay big money for a Volkswagen.
The company hopes to sell 3,000 Phaetons in the United States in 2004, with the intention of selling 300 12-cylinder versions. Volkswagen expects to sell the other 2,700 units here as V-8 models.
The V-8 car went on sale in October in the United States. Volkswagen sold 373 units, which is about 300 units off the company's target. "There was a segment of VW owners who wanted to move upscale, but we had nothing to offer," VW spokesman Tony Fouladpour said.
"Phaeton is for people who have wealth but don't want to show it, who want a German luxury sedan without the pretence of the namebadge".
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