TheSamba.com :: View topic - VW Moving HQ to Northern Virginia!!!!!!!!!!

Thu Sep 06, 2007 5:39 am

12 miles from my house - I'm applying for a job!

Volkswagen Moving to Herndon
U.S. Unit to Bring 400 Jobs From Michigan

By Zachary A. Goldfarb
Washington Post Staff Writer
Thursday, September 6, 2007; Page D01

Volkswagen of America plans to announce today that it will move its headquarters to Herndon, as part of a new corporate strategy to for revamping its sagging auto business.

The company said it would bring 400 jobs to the region and invest more than $100 million to set up operations in a new office building in Woodland Park near Washington Dulles International Airport.

Stefan Jacoby, head of Volkswagen of America, said Northern Virginia's schools and skilled workforce were factors in choosing a headquarters.
The move is part of a corporate restructuring that would eliminate 400 positions, leaving 600 employees and contractors in Auburn Hills, Mich., outside Detroit.

Volkswagen of America's new president and chief executive, Stefan Jacoby, said in an interview yesterday that Northern Virginia's high-quality schools, skilled workforce and proximity to the airport made it attractive.

"Fora young talent, 35 years old, to come here with his family. . . is a very important factor," Jacoby said. "By reducing this organization by 30 percent, you need even more talents, more creative people, more motivated people."

Jacoby added that the company decided in early 2006 that it wanted to move to the East Coast, where most of its customers are. "You want to work in an environment where you see your customers, where you see your cars on the road," he said. "You don't want to work where you basically see only American cars of the Big Three," General Motors, Ford and Chrysler.

Gov. Timothy M. Kaine (D) authorized incentives worth $6 million to lure Volkswagen, 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 will spend at least $1.5 million to accelerate road and land projects to ease Volkswagen's move.

Kaine raised the possibility that the move would make it more likely that the company would choose to expand in the state if its fortunes improve. Volkswagen does not have an assembly plant in the United States but has discussed building one. Its last U.S. plant, in Pennsylvania, closed in the late 1980s.

"We're also mindful of the fact that Volkswagen, as they succeed, they may want to put another presence in North America and if they have a strong anchor in Northern Virginia that could lead to further activity," Kaine said.

Volkswagen, which makes Volkswagen, Audi, Lamborghini and Bentley cars, is part of the Volkswagen Group, based in Wolfsburg, Germany. The company had $138 billion in sales in 2006 and is the world's fourth-largest producer of passenger cars.

Volkswagen has a strong history in the United States, where customers flocked to its Beetle and Rabbit brands in the 1960s and 1970s. But in recent years, it has struggled. Since 2000, its share of the market for passenger cars in the United States has fallen substantially and is now less than 2 percent.

"Lately we are not progressing with our growth strategy as we wish to do so in the American market," Jacoby said. "This is the single biggest market worldwide."

As it seeks to reverse the declines, Jacoby said, Volkswagen will focus on models in certain categories -- for example, small sport-utility vehicles with an environmental slant, or passenger cars to compete with the Toyota Corolla or Honda Accord.

Jacoby also said the company needs to decentralize and slash bureaucracy, one goal of the job cuts. About 150 people in Detroit are expected to move to Herndon, including much of the corporate leadership. The rest will include those in marketing, sales and other white-collar jobs.

A consultant retained by Volkswagen contacted state economic officials in February to discuss moving here as it considered 14 cities. From there, the process moved rapidly, with little personal involvement by the governor. In early August, Virginia learned that its bid to host Volkswagen was successful.

"I really thought with VW the reason we won was our numbers spoke for themselves: high median income, low unemployment, very connected to the global marketplace," Kaine said.

The investment by Volkswagen would be the largest in Fairfax since November 2004, when Booz Allen Hamilton announced it would create as many as 4,600 jobs in the county with a $133 million investment over five years.

The news is a setback for Michigan Gov. Jennifer Granholm (D), who has been struggling to keep her state's economy afloat as its manufacturing base declines. Jacoby flew to Detroit last night to meet with Granholm. She has vowed to keep auto jobs in Michigan.

Kaine, Jacoby and Gerald L. Gordon, president and chief executive of the Fairfax Economic Development Authority, are to attend a ceremony this morning at the 185,000-square-foot headquarters. Employees are to begin occupying the headquarters in April, and the move should be completed by the end of 2008.

Thu Sep 06, 2007 7:35 am

^^weak attempt to save face after shitting on the people that put them there in the first place.......still not buying it !!! Let'em drown!!!!!!!! :roll:

Thu Sep 06, 2007 7:50 am

Just watched the video here at work. A bunch of VA Politicians slapping their own backs.

VW/Audi Corporate and Credit moving to Herndon, VA. Close to DC and Dulles International Airport.

It makes business sense. VA had a empty building. VW wanted to get out of the rust belt.

I'm more interested in where they're going to put the North American Manufacturing business. I hope it's not PA. My bet is SC/GA/AL or TN.

Thu Sep 06, 2007 9:06 am

mistake #1

Quote: Volkswagen does not have an assembly plant in the United States

mistake #2

Quote: Jacoby also said the company needs to decentralize and slash bureaucracy, one goal of the job cuts. About 150 people in Detroit are expected to move to Herndon, including much of the corporate leadership. The rest will include those in marketing, sales and other white-collar jobs.

aren't the corporate leadership responsible for the problems you're having now?
sounds like Stefan should step up, take responsibility and fire himself and the rest of the corporate yes men and start fresh.

Thu Sep 06, 2007 10:33 am

90volts wrote: mistake #1

Quote: Volkswagen does not have an assembly plant in the United States

really? i mean i sort of agree but at the same time how much more expensive would vw's be if they were made in north america instead of central/south america?

Thu Sep 06, 2007 11:44 am

90volts wrote: mistake #1

Quote: Volkswagen does not have an assembly plant in the United States

mistake #2

Quote: Jacoby also said the company needs to decentralize and slash bureaucracy, one goal of the job cuts. About 150 people in Detroit are expected to move to Herndon, including much of the corporate leadership. The rest will include those in marketing, sales and other white-collar jobs.

aren't the corporate leadership responsible for the problems you're having now?
sounds like Stefan should step up, take responsibility and fire himself and the rest of the corporate yes men and start fresh.

Er... Stefan took over just a few days ago on Sept. 1st- They ARE starting fresh- Why do you think they moved? I believe it is the right thing for them to do-

I was there today. Stefan gave the Governor a toy model of a red convertible bug, Governor gave him a flag that was flown over the VA Capitol building. Lots of speeches but fairly short with minimal pizzaz. Under a hundred people in attendance. Some local politician giving a speech called the R8 a Porsche and everyone cringed a little.

Thu Sep 06, 2007 12:32 pm

90volts wrote: mistake #1

Quote: Volkswagen does not have an assembly plant in the United States

Where do they build cars in the US?

Thu Sep 06, 2007 12:53 pm

79SuperVert wrote: 90volts wrote: mistake #1

Quote: Volkswagen does not have an assembly plant in the United States

Where do they build cars in the US?

Many years ago, VW had the Rabbit plant in Pennsylvania. That was a real kwality car.

Thu Sep 06, 2007 1:17 pm

my mistake on stefan then. but the rest stands.

and they DON'T build cars in america... that's my point.

i don't think it would be hard to build an affordable car in america. saturn did it. i had an sl2 , i liked the quality as well as the price.

the biggest problem is the union. they'd have to make a realistic wage.not dirt cheap like china, but realistic pay. then the problem with that, is like the airline industry. the works took a cut for the good of the company, but the corporate types just starting takng that extra cash for themselves.

Thu Sep 06, 2007 1:59 pm

90volts wrote: my mistake on stefan then. but the rest stands.

and they DON'T build cars in america... that's my point.

i don't think it would be hard to build an affordable car in america. saturn did it. i had an sl2 , i liked the quality as well as the price.

the biggest problem is the union. they'd have to make a realistic wage.not dirt cheap like china, but realistic pay. then the problem with that, is like the airline industry. the works took a cut for the good of the company, but the corporate types just starting takng that extra cash for themselves.

VW's real problem is too much micro-managing from the Fatherland, as well as European focused products (and pricing!) that do not resonate with the American consumer for volume sales. The Germans did not seem to understand that the US is an entirely different market than Europe. They are realizing this, and have made the US market their number one priority now. A desire for products that appeal more to the American automotive consumer were expressed, and production of these models were implied. A strong Euro is also hurting sales margins, which explains the expressed desire for a US manufacturing operation. Quality is on the way up as well and should continue to improve.

Unions? They don't automaticly have to have Union presence if they bring a production facility back to the US. The big 2.8 are the ones strangled by the UAW. They have made very little inroads with other manufacturers. It's not hard to imagine why... Although they have plants around the world, the majority of the models sold in the US are built in Mexico, Portugal, or Germany. The German Unions are paid pretty damn well too, and shipping them over to a nation with a weaker currency hurts the bottom line. They wouldn't want to build a plant here if it wouldn't save them money without hurting quality. And I'm sure they'll avoid Union representation like the plague-

Audi? They got it goin' on- This move will pull them out of Detroit's shadow, and will keep them seperate from BMW, MB, and Jag up in Jersey, yet still close enough to keep tabs on them.

Lamborghini? More profitable and successful than they have ever been. Collaboration with Audi has helped both companies' products immensely. They need to stay in tight with their parent company.

Bentley? Why in the world are they staying in Detroit? That just doesn't make any sense to me... They benefited immensely from the Phaeton engineering. Why aren't they sticking close to VW? I dunno... I imagine they'll be moving to DC as well soon.

Thu Sep 06, 2007 3:35 pm

I care about a movdern VW almost as much as a blind cat cares about Playboy.

Thu Sep 06, 2007 6:36 pm

Pinky wrote:
Unions? They don't automaticly have to have Union presence if they bring a production facility back to the US. The big 2.8 are the ones strangled by the UAW. They have made very little inroads with other manufacturers. It's not hard to imagine why... Although they have plants around the world, the majority of the models sold in the US are built in Mexico, Portugal, or Germany. The German Unions are paid pretty damn well too, and shipping them over to a nation with a weaker currency hurts the bottom line. They wouldn't want to build a plant here if it wouldn't save them money without hurting quality. And I'm sure they'll avoid Union representation like the plague-

I am not sure how you can avoid the union, they are formalized by the workers themselves. Of course union officials will lobby at a plant, but ultimatley this decision comes down to the workers. Many have wised up that maybe a union isn't in their best interest.

Thu Sep 06, 2007 7:39 pm

pdaoust wrote: Pinky wrote:
Unions? They don't automaticly have to have Union presence if they bring a production facility back to the US. The big 2.8 are the ones strangled by the UAW. They have made very little inroads with other manufacturers. It's not hard to imagine why... Although they have plants around the world, the majority of the models sold in the US are built in Mexico, Portugal, or Germany. The German Unions are paid pretty damn well too, and shipping them over to a nation with a weaker currency hurts the bottom line. They wouldn't want to build a plant here if it wouldn't save them money without hurting quality. And I'm sure they'll avoid Union representation like the plague-

I am not sure how you can avoid the union, they are formalized by the workers themselves. Of course union officials will lobby at a plant, but ultimatley this decision comes down to the workers. Many have wised up that maybe a union isn't in their best interest.

Same way Toyota does (although 1 or 2 factories do have Union representation)- offer "fair" wages and benefits- A little higher than they should really be, but not in Union wage territory. Enough to keep workers satisfied and not scramble for the UAW. Just like you said- Many have wised up that it ain't the best idea-

Thu Sep 06, 2007 7:55 pm

bmwloco wrote: I'm more interested in where they're going to put the North American Manufacturing business. I hope it's not PA. My bet is SC/GA/AL or TN.

Highly doubtful they will open up shop here in georgia. Hell, there were a few auto manufacturers threatening to start plants here in the last few years, but at the last minute, would change they're mind and go somewhere else.

Like if i really cared either way... i wouldn't hold my breath if they did come here!. Im with Shagg on this one!!. 'Screw-em!!!

Shagg wrote: Let'em drown!!!!!!!! :roll:

Thu Sep 06, 2007 8:10 pm

I'm betting on West Virginia for a possible factory location. Close enough to Herndon, VA for a day trip and desperate for an influx of jobs- They'd probably be pretty quick to offer some hefty tax cuts and benefits to VW.

Thu Sep 06, 2007 10:37 pm

markie61 wrote: 12 miles from my house - I'm applying for a job!

4 miles from mine - nanna nanna boo boo :P
My best friend & I were talking about applying once it's time.

Fri Sep 07, 2007 7:08 am

Advertisement in today's Washington Post 9/7/2007announcing the move to Herndon, Virginia.

Full color, A-section, two-page, center spread. Other page featured Audi and the R8.

Mark

Tue Sep 11, 2007 7:21 am

Oy vey! MORE lawyers moving to NoVa - and VOA ones at that! Better hide my knock-off VW mudflaps.

Tue Sep 11, 2007 11:45 am

There goes half the gathering for Vintage Volkswagen Club of Michigan!

Every other month they were doing something at VWoA HQ...

I will miss the access to the executive lot.

I think it was a very good move. I believe they originally were based in Connecticut then moved to Michigan in the 70's.

Anyone know about this?

Tue Sep 11, 2007 11:57 am

The Sage wrote: There goes half the gathering for Vintage Volkswagen Club of Michigan!

Every other month they were doing something at VWoA HQ...

I will miss the access to the executive lot.

I think it was a very good move. I believe they originally were based in Connecticut then moved to Michigan in the 70's.

Anyone know about this?

Did any of you ask the VWoA execs why ACVW community is shunned? Did any of you push to have VWoA license reproduction parts, or tell them there is a large demand for quality parts out there that VWoA should support the ACVW community, or were you all just dazzled by the suits and smooched their collective asses in unison?