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VW still set on Phaeton redux despite cost-cutting drive and losing $32k per car

While critically well regarded, the Volkswagen Phaeton has proven to be a vehicle largely unloved by luxury buyers around the world. Despite this, it refuses to die. While VW's luxury sedan hasn't been sold in the US since 2006 due to low sales here, it has soldiered on in Europe with occasional updates. As the model's long lifespan has been winding down, VW has decided to keep pushing the Phaeton into a new generation, despite in-house alternatives like the Audi A8 and Bentley Continental Flying Spur. The move might not make much business sense, but Volkswagen executives are determined to make the Phaeton work. According to market analysts speaking to Reuters, developing the next-gen luxury sedan on the MLB platform could cost as much as 650 million euros ($737 million), despite relying on the same underpinnings in the A8. It's not like the Phaeton is leading the luxury sedan sales ranks, either. Reuters notes VW produced just 5,812 of them in 2013 (the most current year with data), and from 2002 to 2012, the automaker reportedly lost 28,000 euros ($32,000) on each example sold. Conversely, Mercedes-Benz sold 103,737 units of its new S-Class in 2014, an astonishing 82.2 percent jump over the previous year. The decision to keep the Phaeton going doesn't seem to square with the VW brand's cost-cutting strategy. Boss Martin Winterkorn announced last year a plan to save 5 billion euros ($5.7 billion) annually in the coming years. That plan reportedly also includes killing off less profitable models. Apparently, VW can't just rip off the band-aid and get rid of the Phaeton. Even some VW bosses seem somewhat perplexed at the sedan's business case. When Reuters asked the company's US boss Michael Horn about selling the Phaeton here, he said. "That's a dangerous question. It's an image bearer with no relevance for volume." The next-gen Phaeton is scheduled to go on sale in Europe in 2017 or 2018, according to Reuters, which is about a year later than previous rumors. A US launch will reportedly follow in 2018 or 2019 with the plug-in hybrid and potentially even diesel versions on offer. A starting price around $70,000 is estimated. Featured Gallery 2011 Volkswagen Phaeton View 15 Photos News Source: ReutersImage Credit: Volkswagen Plants/Manufacturing Volkswagen Luxury Sedan vw phaeton cost cutting

MindDrive cruises California with 1972 Karmann Ghia EV

If you need a bit of inspirational EV goodness, spend some time watching the collection of videos we've got for you from Minddrive. Minddrive, as you might remember, is the education mentorship program that "uses real-world issues of our times to teach urban students critical thinking, creativity, entrepreneurship and how to improve their future by expanding their vision for themselves." The focus was on a fully restored 1972 Volkswagen Karmann Ghia. Well, restored and converted to electric power. The students previously worked on the Lola EV but this year the focus was on a fully restored 1972 Volkswagen Karmann Ghia. Well, restored and then converted to electric power. In early June, almost 50 Minddrive students and mentors flew from Kansas City to California to visit the epicenter of electric vehicles in the US on something called the "Raise Your Hand Tour." Filmmakers Mark Honer and Kelly Creech from DHTV Digital were along for the ride. The videos below show the students flying from to Oakland, crossing the Golden Gate Bridge, presenting the Karmann Ghia at the California Academy of Sciences and then visiting the Monterey Bay EV Club, Google, Twitter and Telsa. All of this EV engagement apparently worked. One of the students, identified only as Xavier, wrote a poem and essay about what the electric vehicle project meant to him. Here's a tease: "Minddrive has honestly opened my eyes to sights and things I would have never thought possible. I have finally found the right path to follow." Read the whole thing below, after the videos. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. I used to think that I would never be able to achieve to a greater rank. Always thought that power was given to people with a big bank. Never could imagine that my life would be amazing. Felt that my whole existence was around the weed blazing.

More automakers working to turn your smartphone into a shareable digital car key

The smartphone killed the phone book, audio player, the pocket digital camera, handheld GPS devices and voice recorders. Now that addictive, transistor-filled candy bar is coming for your car keys. The Car Connectivity Consortium (CCC) announced that it's unveiled Digital Key Release 1.0 Specification for its member companies, which is the first step in standardizing protocols. As of now, the potential is there for drivers to download a digital key that can lock and unlock the car, start it, and transfer the key to another operator in order to share the car. The CCC's aim is to save development costs, stave off a glut of similar-yet-competing technologies, and create keys that reflect the expanded use cases for cars, i.e., car-sharing services and to-your-car delivery. Next year's Release 2.0 Specification will standardize an authentication protocol between the phone and the vehicle — how a digital key is generated on a secure server and transmitted to the car and the device — and "promise more interoperability between cars and mobile devices." The CCC says that "NFC distance bounding and a direct link to the secure element of the device" will assure security. We take that to mean the phone will need to be in direct contact with the vehicle, at least to open the door. Carmakers and suppliers have been working on digital keys for years now, and the ecosystem for individual owners to open individual cars is growing. Audi showed off its Mobile Key at the 2015 Consumer Electronics Show, and now calls it Audi Connect Key, but we haven't seen much of it in the field. That same year, Volvo said it expected to sell cars with digital keys only by 2017, which clearly didn't happen. Last year, the head of sales at BMW asked, "Honestly, how many people really need [keys]? They never take it out of their pocket, so why do I need to carry it around?" Even though a digital key offers an owner more convenience and long-distance control over their vehicle, car sharing is the target — and that can even include traditional rental cars. In 2013, Continental began testing a digital key in France, aimed at integrating and simplifying the electric-car-sharing business; everything from finding a free vehicle to driving it and charging it could be done on a phone. A key could be programmed with the driver's information, so that any car the driver gets in will be automatically updated with that driver's preferences, say for audio or seating position.