Germany automaker Volkswagen said Thursday it would move its US headquarters to a Washington suburb as part of a reorganisation of its American operations Some 400 jobs are being eliminated in the restructuring, according to a statement by Volkswagen of America.
The company will relocate its US corporate headquarters, the Detroit suburb of Auburn Hills, Michigan, to Herndon, Virginia, starting in April 2008. "The new business strategy will bring Volkswagen of America, with its brands, Volkswagen and Audi, closer to customers, increase competitiveness, and achieve sharper focus on key markets," the company said.
The new headquarters in Herndon will also include the US headquarters for Audi of America, Audi Financial Services, Volkswagen Credit and other affiliated operations. An estimated 400 positions will be transferred to Virginia, and Volkswagen will keep 300 jobs at its current offices in Michigan. The shift will eliminate about 400 jobs, the company said.
"With these changes, Volkswagen of America drives the future," said Stefan Jacoby, incoming president and chief executive of Volkswagen of America. "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."
Martin Winterkorn, chairman of the Board of Management of parent Volkswagen AG, added, "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."
The automaker said it received "an attractive, comprehensive incentive program for the relocation that includes six million dollars in cash-grants from the state to relocate to the site near Dulles International Airport.
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