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VW Debuts Luxury Car; SUV Coming Next

March 7, 2002

Volkswagen AG, which made its mark in the United States with the inexpensive Beetle in the decades after World War II, will introduce a$70,000 luxury car in late 2003, according to a Detroit Free Press story by William Diem.The Phaeton, which goes on sale in Europe this fall, will feature leather luxury inside and a W8 or a W12 engine under the hood.At the same time, Volkswagen will present its Touareg, a sport utility vehicle meant to sell for around $35,000. The Touareg will be built ina Volkswagen plant in Slovakia.Named for a nomadic tribe in the Sahara desert, the SUV may be renamed in the United States, according to Keyes. He said VW dealers objected to it because the image is unfamiliar to Americans.The company expects Phaeton sales to reach 4,000 to 5,000 a year in the United States, and the Touareg about 35,000, accoridng to Keyes.
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