Volkswagen's Dieselgate Is Hindering The Phaeton

Ever since the Volkswagen scandal broke out – in which we learned that a hidden computer program could limit diesel engines’ power so they could pass the environmental tests – the brand has been hit with a few setbacks: engineers are working night and day to find a fix for the affected powertrain, a couple of major employees were ousted and the company stock took a significant drop.

Yet another point recently came up: it seems that VW’s budget cuts and personnel relocation slowed down the development of the brand’s next flagship, and the Volkswagen Phaeton has been put on hold.

• Also: Dieselgate: Volkswagen's Employees Will Be Protected... But They Need To Be Honest
• Also: Dieselgate: 11 Million Vehicles Affected; Winterkorn Resigns

As a reminder, the Phaeton isn’t sold here anymore, but it is still sold in Europe and Asia, where it enjoys surprising success.

The German manufacturer announced a budget of 12 billion euros for the plants and equipment, 1 billion short of the initial plans. Volkswagen will still keep developing their best-selling models, like the next Golf and the upcoming Q5. Also, a quick look at Volkswagen’s concepts tell us that the brand is heavily involved in hybrid and electric drivetrain development.

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• More information on VW's Dieselgate