Against all odds, the Volkswagen Group surprised everyone last month when it announced that the VW Phaeton still has a future and will move to the second generation. This was just weeks after the infamous ‘Dieselgate’ scandal came to light and had everyone speculating such expensive halo models may not have a future because of the rigorous cost-cutting measures that need to be taken to save up for paying fines and compensations.
Now in an announcement regarding reduction of capitalized development costs, the German automobile group has slipped in some bad news for the future halo model. Matthias Muller, CEO at Volkswagen Group, has stated that the VW Phaeton successor is being delayed. It is among the first projects where investments are being spread out to a greater extent or cut back. However, the plan is still to power the flagship saloon by an electric powertrain, as originally announced.
The next-gen VW Phaeton was said to arrive around a year after the fourth-gen Audi A8 arrives in 2017. According to a recent report, it will share the Volkswagen Group’s second generation modular longitudinal platform (MLB 2) with Porsche Mission E concept’s production version and the Audi Q6 e-tron (name unconfirmed). Some technical aspects varying between the three EVs will be design of batteries and the power the electric motors generate.
The Volkswagen Group now aims to cap planned investments in property, plant and equipment, investment property and intangible assets, excluding capex, at approximately €12 billion, which is about €1 billion less than before.