By Leftlane Staff
Monday, Apr 23rd, 2007 @ 6:56 pm

The next-generation Volkswagen Phaeton will be smaller than the current model, according to CEO Martin Winterkorn, who spoke with Germany’s Der Spiegel.

Volkswagen hopes to save significant development costs on the 2010 model by sharing a chassis, transmissions, and engines with the next-generation Audi A6 . It’s not known if these savings will make the new Phaeton less expensive than its predecessor, but it’s certainly possible.

VW will also create more separation between its Audi A8 and the Phaeton by injecting the new A8 with technology from the next-generation Bentley Continental. Although we’re not sure what these features will be, you can bet they’ll rival the gadgets from Mercedes and BMW .

In a recent interview with Bloomberg, VW of America spokesman Andreas Meurer said the company intends to reintroduce its Phaeton luxury sedan to the U.S. market. He didn’t say when it would arrive, but chances are he was speaking about the next-generation model. VW pulled the current Phaeton from America in 2005 due to poor sales.

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