2006 Volkswagen Phaeton Review

The VW Phaeton's W12 engine gets a bump in horsepower this year. It now produces 444 horsepower, a 24-hp rise from last year. Other minor changes include Bluetooth connectivity (delayed introduction) and power height adjustment for all outboard headrests.

The 2006 Volkswagen Phaeton is a well-executed example of VW's ability to construct a proper luxury sedan. Too bad no one's buying it.

Proudly wearing the VW badge, the Volkswagen Phaeton is the German automaker's flagship sedan, first introduced in Europe in 2003. The Phaeton is assembled at Volkswagen's "transparent" factory located in Dresden, Germany, which opened its doors in 2002. Instead of being a dark and dirty manufacturing plant, the transparent factory is built largely of glass windows and walls with wood floors, without a smoke stack in sight. The very nontraditional atmosphere seems only fitting for this very nontraditional Volkswagen car.

The Phaeton rides on a 118-inch wheelbase, which gives the flagship sedan plenty of legroom for both front and rear passengers. At nearly 204 inches long and 57 inches tall, the VW Phaeton is nearly identical to the Mercedes S-Class and BMW 745Li in length and height. VW's luxury sedan has full-time all-wheel drive, an abundance of safety features, plus numerous unique creature comforts, including a four-zone climate control system with humidity sensors and separate temperature controls and an onboard computer system that can be operated from the rear seat.

There's no doubt that the Volkswagen Phaeton is a full-size luxury sedan of the highest caliber. Like every other premium luxo-cruiser on the market, it delivers heaping amounts of power, faultless construction and enough luxury amenities to keep four passengers content even on the longest of trips. There's a reason it costs as much as it does, and those with the means to buy it aren't likely to be disappointed.

But the question remains: Why buy the Phaeton and its Volkswagen baggage when you could get one of its equally competent and more prestigious rivals for roughly the same price? Rational reasons are few and far between. The Phaeton doesn't offer anything that the others don't and its slightly lower price has little relevance for this class of car. Since its launch in the fall of 2003, the Phaeton has by all accounts been a sales flop. Then there's the question of its future. In the likely event that VW decides not to build a second-generation Phaeton, owners of this Volkswagen car will be left holding the keys to a very expensive experiment. If that's a risk you're willing to take, the 2006 Volkswagen Phaeton will most likely reward you with many years of faithful service. If it's not, buy one of its equally qualified rivals instead.

The VW Phaeton is available with two engine options: a 4.2-liter V8 that delivers 335 horsepower or a 6.0-liter W12 that makes an impressive 444 hp. The V8 engine comes mated to a six-speed automatic transmission with manual-shift capability, while the W12 receives a five-speed automatic that also offers manual shifting. Both cars are electronically limited to a top speed of 135 mph. All-wheel drive is standard on all Phaetons.

The Volkswagen Phaeton has a total of eight airbags, including full-length side curtain airbags. Also standard are four-wheel antilock disc brakes with emergency brake assist, stability control and a tire-pressure monitoring system. Electronic park assist is optional.

Fine-tuning the ride for the 2006 Volkswagen Phaeton is an air suspension that includes continuous damping control, which allows the vehicle to automatically adapt to the road surfaces and driving conditions without the driver's input. The competent suspension, along with the standard all-wheel-drive system and eager engine, makes for an entertaining ride, but the car's excessive weight keeps it from delivering the athletic feel of its competitors.

Inside the VW Phaeton, the luxurious cabin is trimmed in wood ranging from chestnut to eucalyptus, Italian leather, and chrome and brushed metal. Buyers can choose between a four-seat or five-seat configuration, with a wood-trimmed console resting between the rear seats on the four-passenger setup. An integrated vehicle management system uses a 7-inch color screen that incorporates the navigation system, onboard trip computer, stereo system and climate control system. It sounds complicated, but the Phaeton's controls are actually much more straightforward than those of other high-dollar luxury sedans.