Posted on 09/06/2007 1:53:23 PM PDT by holymoly
Volkswagen of America announced at a press conference today that, indeed, it is moving its corporate headquarters from the Detroit suburbs to Herndon, Va.
At this morning’s press conference, VWoA’s new president and CEO, Stefan Jacoby, in that post only since Sept. 1, cited a host of reasons why the company is moving from Detroit to Virginia: closeness to customers; support of the state and business community; and a fresh start for VWoA, which is embarking on a new strategic direction after sales of its once-popular Volkswagen brand models have tanked while U.S. financial losses mount.
Jacoby said VWoA is setting out on a new strategy of delivering vehicles more suited to the tastes of U.S. customers, and that requires being closer to its customers. He said one of the key reasons VW chose Virginia from 14 locations considered since early 2006 was to be closer to VW’s customers.
“We put a premium on connecting more with our customers and fostering a culture of fresh idea sand bold thinking,” he said.
In an interview in today’s Washington Post, Jacoby said the VW brand will focus on models in certain categories, specifically small sport-utility vehicles with an environmental slant, and cars to compete with Toyota Corolla and Honda Accord.
Location and proximity to its customers was key in VWoA’s selecting Virginia, Jacoby said at the press conference.
“We already feel at home,” he said. “We already have a welcoming feeling seeing so many Volkswagens and Audis on the road here. This area has one of the highest concentrations of Volkswagen and Audi owners.”
VWoA’s corporate headquarters, which will house the headquarters of its Volkswagen, Audi and Lamborghini brands (Bentley wasn’t mentioned), will be located in a brand new office complex in Herndon, Va., near Washington Dulles International Airport. VWoA will invest more than $100 million in its new headquarters, which will house 400 employees. They begin moving in next April. The move will be completed by year-end 2008.
The business climate of the bustling corridor of Virginia where VWoA will be located was another draw, Jacoby noted. The area is also home to 35 of the country’s fastest growing companies and has been highly ranked by various magazines as a great place for entrepreneurs and other businesses.
“Support” from the Virginia government didn’t hurt. According to today’s Washington Post, Virginia Gov. Tim Kaine authorized incentives worth $6 million to draw VW, including a $1.5 million cash payment in the next year and $4.5 million over five years beginning in 2011. The company won't receive the grants until it meets benchmarks for employment and investing in the region. Fairfax County, Va., will spend at least $1.5 million to accelerate road and land projects to ease Volkswagen's move, the paper reported.
“As a CEO, this is exactly the kind of partner we’re looking for especially when the company is embarking on a new strategic course…We are a company of innovators and bold thinkers – people who want to challenge the status quo. Virginia is a trendsetter with international prestige and the perfect infrastructure for our new beginning.
“You made it easy to select Virginia,” Jacoby concluded.
A new headquarters may not be the only thing VW builds. Virginia Gov. Kaine hinted VW’s success could be followed by added facilities, and Jacoby said a manufacturing facility is a possibility. “It is not on today’s agenda, but will come on the agenda tomorrow,” he said.
Meantime, Virginia's gain is Michigan's loss. VWoA will eliminate about a third of its jobs, but leave 600 employees and contractors at its current headquarters in the Detroit suburb of Auburn Hills, Mich.
A German doctor says, "That is nothing. We can take a lung out of one person, put it in another, and have him out looking for work in four weeks."
A British doctor says, "In my country medicine is so advanced that we can take half a heart out of one person, put it in another, and have both of them out looking for work in two weeks."
The Canadian doctor, not to be outdone, interjected, "You guys are way behind. We took a woman with no brains, sent her to Michigan where she became Governor, and now half the state is out looking for work."
And Governor Granholm of Michigan was where on this...?
Damn the unrestricted movement of capital to where it can be used most efficiently! Damn these insourcers! /paleo
How about putting a premium on NOT talking like a smarmy moron?
LOL. You should send that to the Gov herself.
The only thing worse than an American company avoiding high taxes and excessive regulation is a foreign company doing it.
Out talking to Jeff Daniels about making another commercial promoting Michigan?
And yet I heard an ad just this morning on the radio touting Michigan as a haven for business. How can this be? /s
Are we blown away yet, Jen?
Where was the governor? Granholm was raising taxes on corporations.
Why work to limit “corporate greed” when you can eliminate it entirely by driving business out of state. Mission accomplished in Michigan.
Socialism and communism only work when the government can restrict the flow of people and resources. Michigan’s descent into it’s hellish quagmire of “management” is proof that certain parts of the republic still remain.
Detroit is going dustbowl...
A friend of mine is an alcoholic. He thought that his inner demons would leave him alone if he moved “out of this hell hole.” Obviously, you know that they followed him.
The same applies w/ VWoA. They are covering up a staff cut of 40% with this move, and getting $6 million in free cash. However, their demons will follow them. Within 5 years, barring some lucky stroke of luck (like they had with the New Beetle launch), they’ll leave the American market.
Too bad the voters of Michigan are too stupid to see their Leaders are running the state into the Ground. Comerica Bank has moved to Dallas and left Michigan. Which is Anti-business Pro Taxes and Anti-Capitalism. Hope they enjoy their declining standard of living. Idiots who continue to vote for more stupidity. Who is that working for you Michigan?
I am going to steal that. LOL.
I’m happy for Virginia (from whence the radiohead ancestors hail), but am more than glad to be away from the DC area. When all this kicks in, NOVA traffic is going to be even more of a nightmare.
FarFromNugent.
Special thanks to the State Government of Michigan and all the quasi-socialists infesting Lansing... sorry, that was redundant. And my family wonders why I have no desire to return to the Great Lake Stae...
I guess Michigan can only attract people who like show tunes....they arent creating real growth jobs
Winner!
Do you still have that Fiat(?) photo from way back. It’d be a perfect complement to #14.
Wow, that’s one great old Volkswagen! Yeah, I know I’m old.
Wow!!! I could live with more pics like that. That is one pristine VW!!!
Congratulations to Slovakia. After some shaky post-Communist beginnings, the country has done well.
I remember a couple of years ago, France’s Chirac was on TV accepting questions from about 100 unemployed youth. One compiained that he had lost his job in auto maufacturing - the job had moved to Slovakia.
Jeeze. What’s Jeff Daniels gonna say about this?
I see absolutely no reason why putting your headquarters in Fairfax, Virginia instead of Detroit, Michigan could have anything to do with “getting closer to your customers”.
What difference does it make where your headquarters are. Isn’t the important thing that your DEALERSHIPS are close to your customers?
I don’t mind that they moved, but what they are really closer to is Washington DC so they can lobby congress more easily for special breaks.
Plus Virginia is paying them to come here.
Couldn’t help but notice the model’s boobs and the hubcaps have the same design.
Are you serious or just bitter? As long as there are gays in America, Volkswagon will be selling cars here.
Wow, that applies to both pics.
Dustbowl would be an improvement.
**GROAN** :)
“I’ll buy that for a dollar.”
Is that Skoda’s big plant?
I see getting out of Michigan as a good move for VW and Audi. You don’t want SameThink with the U.S. Big 3 management, and I think they were tending towards that.
What could justify spending $250K per employee in a new building?
I think there are quite a few gun makers there too. Is the Blakial (sp) plant there?
They make a real nice double rifle I’d like to get my hands on.
The fraulein is attractive too.
“I see absolutely no reason why putting your headquarters in Fairfax, Virginia instead of Detroit, Michigan could have anything to do with “getting closer to your customers”.”
I thought that VWoA was trying to hide from their customers, given my experiences w/ VW in the past.
If I thought that they wanted to be close (and I live 90 miles from their current location) I’d go ask them about some of the common quality problems that hit all VW’s....
slug bug!
>>I see absolutely no reason why putting your headquarters in Fairfax, Virginia instead of Detroit, Michigan could have anything to do with “getting closer to your customers”.
Ever driven around Michigan, versus, say, Dallas, or Atlanta, or Orlando, or San Francisco? Or DC?
It’s really, really different in Michigan. Trust me. I believe it’s one of the reasons that Detroit has poorly responded to the growth of foreign auto manufacturers. And note I don’t say “imports”, because in many cases, those foreign auto manufacturers are building the cars here.
“Are you serious or just bitter? As long as there are gays in America, Volkswagon will be selling cars here.”
Not bitter. Not gay either, and I have 2 VW’s. Ahem.
It’s a well-known fact that VW was looking at pulling out of the USA before they released the New Beetle. They haven’t done very much since then, and sales have slumped. I’m saying that they’ll be pulling out of the USA in 5 years.
“Within 5 years, barring some lucky stroke of luck (like they had with the New Beetle launch), they’ll leave the American market.”
Porsche recently upped their ownership in VW-Audi. Porsche is a highly profitable company. Audi is highly regarded in Europe.
There are many large auto companies worldwide. The US combines a big market, with access to trend setting design, and some technology.
So I deffer with you. VW was the first foreign auto company to sell significant numbers in the US. I think they are here to stay.
Unlike Mercedes, I doubt they will buy an American car maker. Yet—guess what is the biggest selling vehicle in Europe? Currently Opel Astra (GM).
> They are covering up a staff cut of 40% with this move, ...
Moves are a great way to cut staff. You can offer 100%
a paid move and a job promise, and only 5% will take it.
> Isn’t the important thing that your DEALERSHIPS
> are close to your customers?
We have a TDI. Even if VW brings the TDI back into the
US market, we won’t buy another unless there is a dealer
closer than 100 miles away (where ours is now).
VW needs to get back into the diesel market, promote
its advantages, and grow the dealer net.
_________
They also need to avoid turning the purchase into a
political decision. Ford made that mistake, so when
we bought a pickup last month, FMC wasn’t on the
long or short lists.
Hey! Not everyone voted for Granholm - the lobotomized gnat. Nor did everyone vote for Levin, Stabenow, Conyers, and the mom and son team of Kilpatrick. The Libs are proud here that we lead the nation in the number of people leaving the state. Weze B Nummer 1 !
(please read fully before posting any response!)
Suh, it is only due to mah high regard for your picture postings involving
the motorcycle form of personal conveyance, that I do not hit the
“abuse button”.
And the fact that I’m getting a good belly-laugh from that image you
put up in post 46!!!
Check out 46
Maybe if they stopped naming cars with wierd names like TOUREG, or PASSAT?
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