VW Headquarters to move to VA
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VW Headquarters to move to VA
According to Forbes:
http://www.forbes.com/feeds/ap/2007/...ap4089944.html
http://www.forbes.com/feeds/ap/2007/...ap4089944.html
Originally Posted by Forbes
HERNDON, Va. -
Volkswagen is moving its North American headquarters out of the Detroit area - the nation's automotive capital - to the suburbs of the nation's capital and will cut 400 jobs in the process, the German automaker said Thursday.
Volkswagen (other-otc: VLKAF.PK - news - people ) of America's move from Auburn Hills, Mich., to Herndon, Va., will begin in April 2008 and be completed by the end of next year, the company said.
It said that 600 of the current 1,400 staff will remain at Auburn Hills in call center and technical services positions, while 400 jobs will be transferred to Virginia. About 150 employees in Michigan are expected to move to Herndon, Volkswagen of America President and CEO Stefan Jacoby said.
The remaining 400 jobs will be cut, the company said.
Jacoby said the company scouted 14 different locations but settled on northern Virginia, which offered $6 million in economic incentives.
He said he wanted to get Volkswagen's headquarters closer to the company's customer base, which is strong on the East and West coasts and particularly strong in the Mid-Atlantic region. He also said Virginia's reputation as a business-friendly state and proximity to Dulles International Airport, a major international hub, were strong factors.
"We need to be in the heart of our customer" base, Jacoby said in an interview. "This decision is not a rejection of the state of Michigan. We will remain a major force in Auburn Hills."
Jacoby said he did not think it would be difficult to find qualified auto executives and senior staff in the Washington area, given the educational levels in the region.
Headquarters for affiliated brands and services, including Audi of America, Audi Financial Services and Volkswagen Credit, will also move.
Volkswagen's is trying to boost its presence in the U.S. market, and Jacoby said he wants to do a better job of developing and marketing cars that will appeal to American consumers.
Volkswagen AG is the world's fourth largest producer of passenger cars and is Europe's largest automaker, but accounts for just 2 percent of the U.S. auto market, said company spokesman Steve Keyes. The U.S. market accounts for a little less than 5 percent of Volkswagen's worldwide sales.
Volkswagen CEO Martin Winterkorn said that "the U.S. market has top priority for Volkswagen."
The company's decision to move its North American headquarters highlights the disparate economic fortunes of the Washington area and Detroit. Metropolitan Washington has one of the lowest unemployment rates of any metro region, at 3.3 percent, while Detroit, with an 8.4 percent unemployment rate, has the nation's highest. Fairfax County, home to the new headquarters, has the highest median household income of any county in the nation, according to the most recent census estimates.
Kaine said the $6 million incentive package is typical for a deal of this size. The governor said he was particularly pleased to add a major automotive company to Virginia's corporate roster following the loss of a Ford Motor Co. (nyse: F - news - people ) manufacturing plant in Norfolk, which closed earlier this year.
Volkswagen does not have an assembly plant in the United States but has expressed interest in building one. Kaine said he hoped that Volkswagen would pick Virginia if it chooses to expand.
In Lansing, Michigan Gov. Jennifer Granholm met with Jacoby on Wednesday evening after a report in The Detroit News that VW was considering the move. Neither commented after the meeting.
Shares of Wolfsburg, Germany-based Volkswagen were barely changed Thursday, edging down less than 0.1 percent to 150.22 euros ($204.52) in Frankfurt trading.
AP Auto Writer Tom Krisher in Detroit contributed to this report.
Copyright 2007 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
Volkswagen is moving its North American headquarters out of the Detroit area - the nation's automotive capital - to the suburbs of the nation's capital and will cut 400 jobs in the process, the German automaker said Thursday.
Volkswagen (other-otc: VLKAF.PK - news - people ) of America's move from Auburn Hills, Mich., to Herndon, Va., will begin in April 2008 and be completed by the end of next year, the company said.
It said that 600 of the current 1,400 staff will remain at Auburn Hills in call center and technical services positions, while 400 jobs will be transferred to Virginia. About 150 employees in Michigan are expected to move to Herndon, Volkswagen of America President and CEO Stefan Jacoby said.
The remaining 400 jobs will be cut, the company said.
Jacoby said the company scouted 14 different locations but settled on northern Virginia, which offered $6 million in economic incentives.
He said he wanted to get Volkswagen's headquarters closer to the company's customer base, which is strong on the East and West coasts and particularly strong in the Mid-Atlantic region. He also said Virginia's reputation as a business-friendly state and proximity to Dulles International Airport, a major international hub, were strong factors.
"We need to be in the heart of our customer" base, Jacoby said in an interview. "This decision is not a rejection of the state of Michigan. We will remain a major force in Auburn Hills."
Jacoby said he did not think it would be difficult to find qualified auto executives and senior staff in the Washington area, given the educational levels in the region.
Headquarters for affiliated brands and services, including Audi of America, Audi Financial Services and Volkswagen Credit, will also move.
Volkswagen's is trying to boost its presence in the U.S. market, and Jacoby said he wants to do a better job of developing and marketing cars that will appeal to American consumers.
Volkswagen AG is the world's fourth largest producer of passenger cars and is Europe's largest automaker, but accounts for just 2 percent of the U.S. auto market, said company spokesman Steve Keyes. The U.S. market accounts for a little less than 5 percent of Volkswagen's worldwide sales.
Volkswagen CEO Martin Winterkorn said that "the U.S. market has top priority for Volkswagen."
The company's decision to move its North American headquarters highlights the disparate economic fortunes of the Washington area and Detroit. Metropolitan Washington has one of the lowest unemployment rates of any metro region, at 3.3 percent, while Detroit, with an 8.4 percent unemployment rate, has the nation's highest. Fairfax County, home to the new headquarters, has the highest median household income of any county in the nation, according to the most recent census estimates.
Kaine said the $6 million incentive package is typical for a deal of this size. The governor said he was particularly pleased to add a major automotive company to Virginia's corporate roster following the loss of a Ford Motor Co. (nyse: F - news - people ) manufacturing plant in Norfolk, which closed earlier this year.
Volkswagen does not have an assembly plant in the United States but has expressed interest in building one. Kaine said he hoped that Volkswagen would pick Virginia if it chooses to expand.
In Lansing, Michigan Gov. Jennifer Granholm met with Jacoby on Wednesday evening after a report in The Detroit News that VW was considering the move. Neither commented after the meeting.
Shares of Wolfsburg, Germany-based Volkswagen were barely changed Thursday, edging down less than 0.1 percent to 150.22 euros ($204.52) in Frankfurt trading.
AP Auto Writer Tom Krisher in Detroit contributed to this report.
Copyright 2007 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
#2
Re: VW Headquarters to move to VA
heard on wtop this morning this is happening a.s.a.p. the deal is done,and makes since. nissan's american hq is here in va right off of the dulles toll rd. glad to see them coming here.
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Re: VW Headquarters to move to VA
But... it's positive for Va to bring in the revenue and job opportunity.
#5
Re: VW Headquarters to move to VA
Yeah it sucks, but honestly? They sort of did it to themselves. When you have unskilled labor costing a company closed to $70 an hour, theres no way they could survive.
#6
Re: VW Headquarters to move to VA
Good for VW. I've heard a coupld rumors about another company coming in the Ford factory too. I guess we'll have to see.
My fiance is a career developer with the company that's dealing with all the Ford employees. They were offered a great deal and the ones that didn't take it were idiots. I forgot what it was, but it was a pretty amazing offer. A lot of her clients are pissed cause they can't get find another job making $25+ an hour and wonder why.
How the fuck are you supposed to market yourself when for the past 10 years you've put 3 screws in a door on an assembly line?
I know this doesn't have to do with Ford, but I just thought I'd throw it out there since Ford is on their way out here.
My fiance is a career developer with the company that's dealing with all the Ford employees. They were offered a great deal and the ones that didn't take it were idiots. I forgot what it was, but it was a pretty amazing offer. A lot of her clients are pissed cause they can't get find another job making $25+ an hour and wonder why.
How the fuck are you supposed to market yourself when for the past 10 years you've put 3 screws in a door on an assembly line?
I know this doesn't have to do with Ford, but I just thought I'd throw it out there since Ford is on their way out here.
Last edited by ritz; 09-06-2007 at 01:29 PM.
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Re: VW Headquarters to move to VA
Good for VW. I've heard a coupld rumors about another company coming in the Ford factory too. I guess we'll have to see.
My fiance is a career developer with the company that's dealing with all the Ford employees. They were offered a great deal and the ones that didn't take it were idiots. I forgot what it was, but it was a pretty amazing offer. A lot of her clients are pissed cause they can't get find another job making $25+ an hour and wonder why.
How the fuck are you supposed to market yourself when for the past 10 years you've put 3 screws in a door on an assembly line?
I know this doesn't have to do with Ford, but I just thought I'd throw it out there since Ford is on their way out here.
My fiance is a career developer with the company that's dealing with all the Ford employees. They were offered a great deal and the ones that didn't take it were idiots. I forgot what it was, but it was a pretty amazing offer. A lot of her clients are pissed cause they can't get find another job making $25+ an hour and wonder why.
How the fuck are you supposed to market yourself when for the past 10 years you've put 3 screws in a door on an assembly line?
I know this doesn't have to do with Ford, but I just thought I'd throw it out there since Ford is on their way out here.
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Re: VW Headquarters to move to VA
I live a stones throw from the place, and it is sad to see them leave. This state is in extremely poor shape, thanks to one former Gov. John Engler. Another blow to our economy.....
And Ritz, that is the flimsiest arguement ever.
And Ritz, that is the flimsiest arguement ever.