We've been hearing the gossip since 2005, that Volkswagen was building a coupe-like version of its Passat sedan. Coupe-like, of course, refers to the long, sloping roofline and head-smashing lowness of the rear door jamb, a construct made popular by the Mercedes CLS. Now, spies say they've caught the 2008 model with all but front and rear portions covered. The more upscale Passat will replace the Phaeton as the company's US flagship. That could mean partial encroachment into Audi's territory, though we hear market research indicates there's room for a new Volkswagen among buyers, ages 47 to 49 with income of between $80,000 and $81,500 who find Audi "hard to pronounce in front of friends." [Winding Road]