At first glance, the new for 2004 Volkswagen Phaeton might look like a bloated Passat, but it wasn’t, it was a full-on luxury sedan with a 4.2-liter/330-horsepower V-8 and an optional 6.0-liter/414-horsepower 12-cylinder engine. Power gets to the road through VW’s 4Motion AWD system and air suspension with electronic damping. Brimming with such luxury appointments as massaging seats and sunshades, as well as the newest safety features, this car also formed the basis of the Bentley Continental GT. VW aimed to upset the luxury-car market with pricing below equivalent cars from other European manufacturers.
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