Volkswagen and Audi have a clear distinction and this experiment already failed once so why is Volkswagen doing it again? Volkswagen makes a ton of money everywhere except the United States. Sure, VW's sell here, just not like they do in Germany, Europe, or the rest of the world. This is going to be VW's halo car in the United States.
CEO Martin Winterkorn stated the following, "A brand as large as Volkswagen needs a halo project in the upscale segment. We've seen what happens to brands that don't have that kind of project."
Volkswagen sales are down in the United States and shrinking. Will another Phaeton change this? Don't small, fun, affordable cars like the Volkswagen Up Buggy make more sense for increasing sales volume and perception? It certainly is more logical than cannibalizing Audi A8 sales.
Expect to see the new Phaeton on display at the Detroit Auto Show. VW is going to do what it is going to do and they have money to burn so let's watch them burn it. Again.