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!
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