HERNDON – Volkswagen is moving
its North American headquarters
from Michigan to Virginia next year
and will cut 400 jobs, the German
automaker said Thursday.
Volkswagen of America’s move from
Auburn Hills, Mich., to Herndon will
begin in April 2008 and be completed
by the end of next year, the company
said.
It said that 600 of the current 1,400
staff will remain at Auburn Hills in call
center and technical services positions,
while 400 jobs will be transferred to
Virginia. About 150 employees in
Michigan are expected to move to
Herndon. The company’s remaining
posts will be cut, Volkswagen AG
said.
The company said the decision to
move made sense given that it has
most of its customers on the East
and West coasts. The move involves
affiliated operations such as Audi of
America, Audi Financial Services and
Volkswagen Credit.
“This move is part of our company’s
new corporate strategy of connecting
even more closely with our customers,
and encouraging fresh ideas and bold
thinking,” Volkswagen of America
President and CEO Stefan Jacoby said
in a statement.
Gov. Timothy M. Kaine authorized
incentives worth $6 million to bring
Volkswagen to Northern Virginia. He said
the state’s skilled workers and proximity to
Dulles International Airport were signifi –
cant factors in luring the company.
Kaine said he was particularly
pleased to add a major automotive
company to Virginia’s corporate roster
following the loss of a Ford Motor Co.
manufacturing plant in Norfolk, which
closed earlier this year.