The Volkswagen Phaeton was created when Volkswagen decided that it would take on Mercedes-Benz as an upscale German brand. The Phaeton is a tour-de-force of electronic gadgetry and driving aids. Closely related to the Audi A8L, the Phaeton is up to the task featuring a 340hp V8 and all-wheel drive. The Phaeton W12 becomes the ultimate Volkswagen with a 420hp 12-cylinder engine and a price tag that tops $110,000. The Phaeton is a good car, but it has not sold extremely well. Poor sales will lead to the discontinuation of the Phaeton in North America after the 2006 model year.