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When Mercedes-Benz announced that it would be battling the VW brand through its A-class variant and the C-sports coupe, Volkswagen almost immediately announced their entry into the luxury car segment. Introduced a few years back as the D1 Flagship, Volkswagen introduced the production model of the Phaeton for public viewing in this year's Geneva Motor Show.

The Phaeton has a unique W12 engine (made of 2 V6s placed side-by-side) producing 420-bhp. The base model has a V6 producing 240-bhp. The top-range Phaeton has a six speed sequential automatic gearbox similar to the BMW 7-series, whereas the other models will receive a 5-speed automatic gearbox. all come with VW's all-wheel drive system dubbed "4Motion" that integrates the electronic stability control as well.

Inside, the equipment level is as high as any Merc or BMW with four-way climatronic air conditioning, heated / ventilated seats, onboard computer system with "infotainment".

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