After speaking to a source within Volkswagen, German newswire Automobilwoche.de reported that the new powerplant could produce as much as 400hp yet return an average fuel consumption of a mere 1.5-litres per 100km, while emitting just 50g/km of carbon dioxide.
The source also mentioned that the move to a hybrid Phaeton was prompted on the warm reception of such powertrains in the Chinese and American markets by brands under the Volkswagen Group umbrella.
The next Phaeton will, primarily, go up against the Mercedes-Benz S-Class. However, the upcoming Audi A8, which will share the same platform, engines, and hybrid technology as the Phaeton, will be a contender to the more sporting BMW 7 Series.
Speaking of that platform, the Volkswagen Group's MLB Evo is also shared with the recently released Audi Q7. The inside source also disclosed that the same platform will be utilized in the next Audi A4 and A6 as well as the Volkswagen Touareg SUV.
Both future iterations of the Audi A8 and Volkswagen Phaeton will have a longitudinally-mounted front engine layout, all-wheel drive, and optional four-wheel steering.