As 2014 is the Volkswagen Phaeton’s 12th and most likely final full year of production, Glenn Brooks thought it was high time he tried this limo.

VW emailed me the spec of the test car a few days ahead of its arrival, which jogged my memory about some of the many and extraordinary engines that have been offered in the Phaeton. Sadly, W12 VWW wasn’t powered by a 6.0-litre W-formation twelve-cylinder engine: that unit is no longer available, though you can still find it in modified forms under the bonnet of the Bentley Flying Spur and Conti GT/GTC as well as the (6.3-litre) Audi A8 W12.

So, no W12 but instead a far more economical 2,967cc V6 turbo diesel. It emits 224g/km and returns a Combined average of 32.2mpg and on test, the economy wasn’t far off that number. Power is 240PS (174kW) @ 4,000rpm, with torque of 500Nm delivered at just 1,500rpm. Drive is sent to all wheels via a six-speed tiptronic automatic gearbox.

In the UK, just the V6 TDI is offered, though the 107 people who bought one in 2013 could choose from two sizes of Phaeton: standard wheelbase, or long. That sales total was a gentle decline on the prior year, when 118 were registered. In 2011, 199 were sold, representing something of a surge over the 133 cars which were delivered in 2010.

German market customers are also offered two petrol engines; a 3.6-litre V6 and a 4.2-litre V8. Each has 4MOTION all-wheel drive and the the choice of four- or five-seats plus SWB and LWB bodies. Neither Britain nor Germany is anything more than a minor market for the biggest, priciest VW, and if you’re wondering about the US, the car was withdrawn from sale during 2006 after what would be best described as a less than satisfactory sales performance.

While North America was a major disappointment, China has been the Phaeton’s salvation. There, its discreet appearance is a plus now that the Party is going after officials who flaunt their money. It doesn’t take a genius to therefore predict which market the successor model is being designed primarily for.

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Customers in the Middle East also make up a decent percentage of sales of the current car – am I alone in recalling the special extended wheelbase Phaeton Lounge concept which premiered eight years ago at the Dubai motor show? I always thought it was a shame that the XXL Phaeton never made production; perhaps we’ll see something similar when the new shape model appears in 2015.

Back to the current one. It seems a long time ago that this money-no-object limousine first appeared. And it was – the Phaeton first went on sale in 2002. Five years later came the first facelift, which was also when we saw the appearance of the 240PS 3.0-litre TDI versions (up from the 225PS output of the first 3.0 TDI of 2004). A further three years on came a second minor restyle, the updated model making its debut at April 2010’s Beijing motor show. The most recent makeover brought with it Dynamic Light Assist (camera-based, dynamic main beam control), this system a first for a saloon car at that time.

To drive, it feels quite similar to a Lexus LS: near-silent, super comfy thanks to its standard air suspension and a lot better in the bends than you might have imagined, especially when you realise the development programme would have begun towards the end of the previous century. It’s lengthy too, measuring 5.18m from end to end in as tested LWB form (SWB cars are 5.06m long), which helps with the ride quality. As well as self-leveling, the pneumatic springs also mean you can raise or lower the car if needs be, and there are four settings from Comfort through to Sport.

Roominess is one of the strongpoints – you could almost get lost in the back of this car, such is the amount of lounging space. Rear seat passengers have their own controls for the four-zone air-conditioning system, and the back is also a great place to watch a piece of in-car theatre – the way the eucalyptus wood trim rolls away when either front seat occupant pushes the buttons which make the dashboard vents appear.

The test car had a price tag of GBP57,305 but there were extra cost options too. These were GBP660 worth of electric boot opening (and what other car has such elaborately-engineered, meccano-like hinges?), a GBP425 rear-view camera, GBP1,965 for adaptive cruise control, massaging and air conditioned rear seats which add an additional GBP1,285 and ‘sensitive’ leather upholstery (including 18-way front seats) for GBP3,075. Even if you forsake those options, the Phaeton still comes with all manner of niceties, such as automatic soft-closing doors, heated screen washer jets – invaluable at this time of year – an electric sunroof and rear sun blind, heated front seats, a touchscreen SatNav system and an 8-inch screen, a Dynaudio sound system and a proper full-sized spare tyre.

In 2012, its final full year of production, Mercedes-Benz still managed to sell over 65,000 units of the now old-shape S-Class. Including the forthcoming coupe, convertible, Pullman and Maybach derivatives, Daimler should be building over 100,000 units of the latest model from 2015 onwards. I mention that as the reason why Volkswagen has every intention to replace the Phaeton. Even 20,000 cars annually should equate to juicy profits, especially as this time around, no dedicated factory is being built to make the second generation model series. This facility in Dresden will certainly have to be retooled but with the Volkswagen Group’s existing MLB platform likely to be the basis for VW 631, the Phaeton Mk II, that should mean a handy boost to plant flexibility.

Sources claim that as well as replacements for today’s standard and long-wheelbase luxury sedans, a coupe could be added in 2016 or 2017, with all body styles to be sold in North America, too. Volkswagen should make the next CC a pricier car,  slotting a new vehicle (VW511 – something like the Mercedes CLS-Class) between the CC and the next Phaeton. Volkswagen stated last April that a ten-speed DSG automatic gearbox was under development so that would certainly be a headline grabber for a new flagship model. A plug-in hybrid Phaeton TwinDrive would also make sense for markets such as California.

With all that talk of what’s likely to be part of the second generation model range, turning back to the current car ought to make you see it as a long-outdated luxury barge, yet in many ways, it’s not antiquated at all. It doesn’t look terribly exciting but then what in this class does? Some might answer that question with ‘Jaguar XJ’ but then that car, outstandingly engineered and styled to look like nothing else in the segment, sells in smaller numbers across the globe than the big Volkswagen.

The VW badge is a problem for some potential buyers in the F-segment of the luxury car market but it shouldn’t be – the Phaeton isn’t expensive compared to its intended rivals. I’ve recently driven the latest Discovery and the car I tested cost GBP60,000. It’s only two years less aged than the Phaeton, has just had another facelift and that will help to keep it selling strongly. In that context, I can see the next edition of VW’s limousine being like this Land Rover: the groundwork having been done by the first generation model, a new and younger generation of customer might be willing to see a Volkswagen priced just below 7 Series, S-Class and A8 levels as a true premium segment model. Most of those customers will be in China’s richest cities, but even if VW sells just 5,000-10,000 cars in other global markets, the business case for the next Phaeton is obviously there.