I've said before that I believe the Volkswagen Phaeton to be an expensive mistake. Great car though it is, a Volkswagen badge on such a vehicle limits its appeal at an end of the market where brand matters a great deal. And Volkswagen's product portfolio gap between Passat and Phaeton looks like a yawning gulf. The product that Volkswagen has in mind to fill that gap could well be the answer to Volkswagen's Phaeton problem. As a more modest luxury car, it may be within reasonable range of Passat upgraders. Maybe some of the Phaeton's development experience can be put to good use in developing this new model too. I don't suppose Audi will be all that pleased about another competitor out of the VW stable, but for the group as a whole, it may make some sense. The Phaeton clearly did not and the scenario in which it continues, but at low and decreasing volume, before an eventual graceful exit, is quite a likely one I feel.