According to Chinese media reports at Auto.163.com, Volkswagen are planning to put their flagship Phaeton into production at Shanghai Volkswagen in 2015. The two joint venture partners currently produce a range of VW branded vehicles, but most are low to mid range priced vehicles.
Auto.163 are citing VW’s new DSG gearbox factory in Tianjin as the source for its Chinese Phaeton rumors. The new gearbox factory will produce the DQ380 and DQ500 gearboxes which are only used in the flagship vehicle. Does this mean the Phaeton will be produced in China? Probably not. Does it mean that the gearbox will likely be exported? Probably yes.
The Phaeton is priced from an affordable 758,800RMB to 2.53 million in the Chinese market. Should it be produced in China then perhaps we can see that price drop slightly, but the chances of it being produced in China are also relatively slim.