The highlight of the new range is the introduction of a 3.0-litre V6 TDI engine which Volkswagen claims is its first engine to comply with the new Euro V emissions legislation – two years before it becomes law. Volkswagen claimed the engine had achieved the 80 per cent cut in particulates from Euro IV required by the new legislation. The 3.0-litre Phaeton has a 0 to 62 mph time of 8.4 seconds with a top speed of 146mph. Two other engines, the 4.2-litre V8 335 PS and 6.0-litre W12 450 complete the line up.

The Phaeton was originally launched as a luxury car to rival market leaders such as Mercedes Benz and BMW, but sales were disappointing. Since its launch in 2003 until the end of May this year, a total of 1,027 Phaeton's were sold in the UK. The revised Phaeton has an entry-level price of £37,995 until 31 December and prices rise to £74,272 for the flagship 6.0-litre W12 long wheel base model. Volkswagen expects to sell 300 Phaetons in the UK this year.