Forward-looking powertrains set for next VW Phaeton

The second generation of Volkswagen's Phaeton luxury sedan will offer turbocharged direct injection diesel and plug-in hybrid engines, company sources say.

VW's big sedan is expected to arrive in the U.S. for the 2018 or 2019 model year. This year, Michael Horn, CEO of Volkswagen Group of America, confirmed that the Phaeton would return to the U.S.

The sources say the Phaeton will be offered with several high-powered engines, including a V-8 TDI that generates about 450 hp and a V-6 gasoline plug-in hybrid, rated at more than 400 hp. VW also will offer a top-of-the-line W-12 engine that is unlikely to be available in the U.S.

The price of the new Phaeton in the U.S. is expected to start at around $70,000.

Even though sources say the new car "is virtually developed and finished," the company is taking its time to replace the aging first-generation Phaeton, which still enjoys a loyal following in China.

In the United States, the model sold poorly and was yanked in 2006.

The new Phaeton will be based on Volkswagen Group's MLB Evo modular-longitudinal platform, which was developed by Audi and will be shared with the next-generation Audi A4, A6 and A8 sedans, as well as the next-generation Audi Q7 and Volkswagen Touareg crossovers.