The 2004 Volkswagen Phaeton is a luxury sedan that was introduced to rival more established luxury brands. It was offered in both V8 and W12 trims. The remarkable 6.0 liter W12 engine produces 420 horsepower, while the 4.2 liter V8 offers a more than adequate 335 horsepower. Both engines were linked to a six-speed automatic transmission, with Volkswagen’s 4MOTION all-wheel-drive as standard equipment. The Phaeton’s hand-finished interior was its brightest highlight, boasting premium materials, a 12-speaker sound system, and Volkswagen’s first infotainment system. Despite its luxurious trimmings, the Phaeton's relatively high price point compared to the VW brand's traditionally more economical lineup made it a challenge to use it to compete with established luxury models.