The next generation Volkswagen Phaethon, which is anticipated to make its market debut in 2015, may end up being manufactured by Shanghai VW, a media source reported today.

Information regarding the next generation Phaethon was released at the recently concluded Paris Motor Show.

The luxury executive car will be targeted at the high end market, with its rivals including Jaguar's XJ. According to VW Management Board Member Ulrich Hackenberg, development work on the car is still ongoing.

The new Phaethon, codenamed VW631, is confirmed to be based on brand new aluminum alloy chassis, which will make it lighter and more durable than its predecessor.

It will be built on the new MLM Evo platform. The platform is noted for its flexibility, which VW may take advantage of by producing a possible plug-in hybrid Phaethon. The manufacturer has yet to confirm this rumor though.

Shanghai VW has already signed an agreement with the German manufacturer to produce new versions of its DSG gearboxes in the country. The gearboxes are suspected by some to be used in the new Phaeton.