Volkswagen Is Restructuring, Moving
Sept. 6, 2007
As part of its new direction in North America, Volkswagen Of America is restructuring and moving its headquarters from Auburn Hills, Michigan to Herndon, Virginia.
The move will allow both its brands — VW and Audi — to be closer to customers, increase competitiveness and achieve a sharper focus on key markets.
The new 185,000-square-foot location will house Volkswagen Of America, Audi Of America, Audi Financial Services, Volkswagen Credit and other operations.
The transition will begin in April 2008 and be completed by the end of the year.
Of the US subsidiary's 1,400 jobs, 400 will go to Virginia, 600 will stay in Michigan and 400 will be eliminated.
"With these changes, Volkswagen Of America drives the future," said Stefan Jacoby, who will this month become its new president and CEO. "It reflects a major new commitment to achieving our company's goals in the world's largest car market. We are excited about moving our headquarters to northern Virginia, where we will be closer to key markets and customers."
Jacoby added, "We must undertake an aggressive new direction in this market and these are critical first steps."
Martin Winterkorn, CEO of parent company Volkswagen AG, commented, "We are strongly focused on the US market. This is a top priority for our company, and we are confident that under Stefan's leadership, we will continue to serve our current US customers well and add many new customers."
Volkswagen Of America received an attractive, comprehensive incentive program for the relocation that includes $6-million in cash grants from the office of Virginia's governor.
VW says it will "focus efforts on producing more cars designed specifically with the US market in mind."
This spells out exciting times ahead for VW fans and customers, if not for the 400 who will lose jobs.