Filed under: Etc., Euro, Hirings/Firings/Layoffs, Volkswagen
VW says Adios! to Auburn Hills - move to D.C. confirmed
by Chris Shunk on Sep 3rd 2007 at 11:10PM 
The workforce exodus in Southeast Michigan is slated to continue, as Volkswagen's North American headquarters is officially heading over to Washington D.C. VW currently employs 1,500 workers in Auburn Hills, just a stone's throw away from Chrysler's epicenter. The move to D.C. comes as VW has lost about $2 billion in North America in 2005 and 2006. Past headquarter moves, like Nissan's shift from California to Tennessee, have helped pare-down a company's white collar workforce, and VW feels its workforce is bloated and in need of fresh blood.
While it's unfortunate for Michigan to lose yet another large employer, the move promises to be a big win for the D.C. area. It'll be tough for VW to improve its bottom line, however, with the Euro worth so much more than the Dollar at the moment. Perhaps a view of the White House and Lincoln Memorial will motivate the new VW North America workforce to keep making great products, but with price tags that are a bit closer to the competition.
[Source: The Car Connection]
Reader Comments (Page 1 of 2)
RicardoHead 11:20PM (9/03/2007)
Please let me know when they get their long term reliability closer to the competition also because as shoddily made as a VW is I won't go near it.
That plus they are wayyyyyy overpriced for what they are.
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Chase 6:04PM (9/04/2007)
Perhaps I'm biased because I own a VW, but I think their value is considerably better than competitors.
Take for instance the fact that the VW Rabbit is one of two cars in the compact category that earned a five-star depreciation forecast by true-delta. -- In the same report, the Eos scored five-stars, and four other VWs scored four stars. -- Those depreciation ratings are only rivaled by BMW and Honda.
Take for the instance the fact that all VWs (aside from those which were in earlier years called "Value Edition") have interiors that are among the best or are the best in class.
Take for instance that all VWs have far above-average dynamic characteristics -- only rivaled by Mazda for the majority of their models.
Take for instance that Isuzu, Kia, Land Rover, Mazda, Nissan, Saab, Saturn, and Suzuki all have the same dependability rating from JD Power as VW. In the same study, VW has the same powertrain reliability as Hyundai and Subaru.
Ray 2:46PM (11/26/2007)
Rick; The German way of fixing a problem is to blame the customer and then go to Congress to verify it was the poor sap who was duped to putting his money where the Germans could get ahold of it. There is no such thing as "German Quality" unless it is "LOW QUALITY" R
Dave 11:51PM (9/03/2007)
I'm curious as to how the cost savings will be made. The D.C. area is one of the most expensive areas in the US...especially compared to Michigan. Nissan's move from CA to TN makes sense because the cost of living in TN is dirt cheap comparatively to CA....but definitely with the MI vs. DC thing.
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Nick 12:05AM (9/04/2007)
Simple, they'll make it up by attracting the kind of fantastic, long term planners and visionaries that serve us so well in our government institutions in the area. Duh.
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Petey 12:09AM (9/04/2007)
Maybe they are distancing themselves from the eventual collapse of the MI economy.
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rockyroad 1:11AM (9/04/2007)
"VW feels its workforce is bloated and in need of fresh blood."
Ah yes, blame the workforce and not the leadership. That is a brilliant strategy worthy of leaders who brought us the Phaeton but not the Fox, Polo, or Touran.
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JDL 8:45AM (9/04/2007)
Too many engineers in every position. I applied for a Marketing/Product internship w/Audi...rejected because I'm not an engineer.
All the German companies seem to think you have to be an engineer to be in any important position. All same-thinking people with the "germans know best" mentality.
Still like my German cars, though.
esoterica 1:15AM (9/04/2007)
Re: the reliability comments, yes I know lots of people got burned with the last-gen veedubs, but I think they have gotten their act together -- I know this isn't a statistically valid sample, but my father has an '06 Jetta TDI that he purchased new that now has >50K mi on it, and it has not had one single problem. Not one. Not even a rattle. Of course, public perception takes a long time to change (just ask GM -- who has actually been making reliable cars for several years -- or Mercedes, who made complete crap for almost a decade before public perception of them finally changed for the worse).
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nagmashot 4:26AM (9/04/2007)
that relibility blameing is just US JD Power nonsens...
You are not the third largest car producer (cars only without trucks and commercials vehicles) in the world if you only produce unrelible shitty cars like many autoblog user try to blame VW...
2006 car´s produced (without trucks light and heavy commercial vehicles and busses)
1. Toyota ~7,000,000cars
2. GM ~5,900,000cars
3. VW ~5,500,000cars
4. Ford ~3,900,000cars
Source OICA published 2007
OICA = Organisation Internationale des Constructeurs d'Automobiles ...International Organization of Motor Vehicle Manufacturers
Nick 5:00AM (9/04/2007)
I guess you must have never seen the Top Gear reliability ratings that have VW near the bottom as well. This has nothing to do with Mexican vs. German VWs. VW puts out junk. Europeans seem to be more tolerant of junk put out by their Euro brethren (Exhibit A: Fiat Exhibit B: Any French Make). Those companies would have been bankrupt in the US a loooong time ago, as would VW. Good for the Europeans for having some loyalty, but it doesn't change the fact that the cars aren't reliable.
nagmashot (Georg Stark 7:29AM (9/04/2007)
topgear as a source looooooool
At europens largest relaibilty statistic the ADAC Pannenstatistik VW perfromance good... the Golf is as reliiable as a Civic over a 5 years period(funny is that a Civic has as much electronic problems as a Golf!)..and this statistic is not based on cosumer reports payed by car producer...it is based on 2.9million real car brake downs observed by europens larges (15,000,000member) car owner club the ADAC (open to all brands) ...
Compy386 8:03AM (9/04/2007)
It's not just JD power. I've know plenty of people with VWs and it's pretty much all the same story. The vehicles are not designed to take the kind of abuse that Americans dish out. Things just fall apart throughout the interior. It's a shame because VW makes some of the best vehicles otherwise.
This move will more or less destroy VW in the US. I can pretty much guarantee it. Look how much of Nissan's momentum was lost in their move. Trying to replace half your workforce is never easy.
Ken 2:01AM (9/04/2007)
Who would want to live in DC?
I do assume they will be out in the burbs. If not, ouch...
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Nick 5:00AM (9/04/2007)
The city of Washington is really, really nice. Some extremely ritzy parts... Also manageable in size and very pretty. Nice place to live, except quite expensive.
Tony C 1:28PM (9/04/2007)
The Car Connection specifically stated the "Dulles Corridor", which would usually mean Northern Virginia, somewhere between McLean and the Dulles Airport, right along the toll road. Where exactly was not spelled out, but there are some new buildings going in around Reston, or they can take over someone else's vacant high-rise.
Lucas 5:07AM (9/04/2007)
Perhaps European cars should sell for what they're worth, maybe then Americans will open their eyes to the big bad world and see what is happening to our currency in it.
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MrFuNKy76 8:06AM (9/04/2007)
VW is only now (finally) making a more reliable product. However, so many people got burned (badly) in the past, everyones afraid to go back. I'd be surprised to see VW still in the US by 2010 unless they make some drastic changes to their offerings here.
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info 4:47PM (9/04/2007)
Is your opinion based on personal experience or just on hear say? I drive a Jetta with 252,000 miles on it. No problems other than replacement of wear out items. I am still on the original alternator, clutch, water pump, power steering pump. My son has a 2002 Golf, 109,000 miles, no problems. My daughter's Gold jut turned 150,00 miles. She lost the two front hub caps. On the other hand, my other son has a Ford windstar, bought new, now has 34,000 miles on it. rattles everywhere, the rear brakes constantly squeak. Local Ford dealer couldn't find anything wrong with it. A friend bought a new Ford Taurus. Needed a new engine with only 6,000 miles. Head gasket failure. At 65,000 miles the transmission needed to be replaced. Another friend also has a Taurus. Granted, it reached 174,000 miles, but now is falling apart. The problems are too numerous to list. I'll stick with my VW's.
JB 8:52AM (9/04/2007)
They won't move to DC itself, likely in NOVA - northern VA, probably out near Dulles/Herndon. Maybe even a bit farther out, like Winchester. I can't see them moving to MD "the ghetto state".
Also unlike to relocate south of DC down I-95, too much traffic and congestion there, not as much open land.
They may try somewhere in western Prince William, too. But not in downtown DC. They need space for parking, storing cars for events, press, etc. Can't do that downtown. Plus, they make cars, the last thing they want is all their new employees taking the Metro to work every day.
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