Volkswagen woos BMW, Mercedes buyers in new upmarket push

REUTERS: Volkswagen’s troubled mass-market brand is pushing upmarket again with a new flagship model a year after ceasing the flopped Phaeton luxury saloon in a bid to lift margins and revive its post-dieselgate image.
Volkswagen (VW), traditionally known for its range of practical saloons, hatchbacks and sport-utility vehicles (SUVs), on Wednesday unveiled the new Arteon fastback to woo customers who like upscale cars like BMW’s 4-Series Gran Coupe or Mercedes-Benz’s CLS coupe but at 
lower prices.
The four-door Arteon will go on sale in German showrooms next month starting at 34,800 euros (US$39,111).
The world’s largest automaker needs higher-margin models to help fund a strategic shift to electric and self-driving cars as it grapples with billions of euros in costs for its 
emissions scandal.
The Arteon, featuring adaptive cruise control and enhanced emergency braking and steering functions, resembles VW luxury brand Audi’s A5 Sportback with its long wheelbase, extended hood and lowered roofline.
“Cars like this have until now been the domain of premium carmakers,” VW brand chief executive Herbert Diess told reporters. “With the Arteon we are trying to gain a foothold in this business.”