VwoA/AoA moving headquarters....News item....
08-27-2007, 09:10 AM
#1
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VwoA/AoA moving headquarters....News item....
"VWoA considers moving its headquarters
Diana T. Kurylko
Automotive News
August 27, 2007 - 12:01 am EST
Volkswagen of America is seriously considering moving both of its brands from suburban Detroit to a new headquarters.
VW would move to an area where its sales are stronger, and would shed some employees from its money-losing Volkswagen of America unit, according to an informed source in Germany.
The search is "very serious," and part of the parent company's push to turn around the U.S. business, the source said. The VW group lost $1.1 billion in 2005 in North America and $795 million in 2006.
The move would be tied to a restructuring of Volkswagen of America by new CEO Stefan Jacoby, who assumes his job Sept. 1. A decision is likely within several months, according to the source.
VWoA would move its Audi and VW brands from Auburn Hills, north of Detroit, where it employs more than 1,500 workers. VWoA probably would trim jobs, the source said.
The relocation is being orchestrated by Germany and a small group Jacoby has sent to the United States to assess VWoA and energize restructuring efforts.
Volkswagen of America is looking at a number of cities on the east and the west coasts. Audi's sales are bigger on the west coast, while the VW brand is split between both. Virginia also has been mentioned as possible headquarters site.
The decision to relocate the headquarters is not tied to the building of a U.S. factory.
"There are no concrete plans to mix relocation with a factory. There are misunderstandings that do not make sense," said a Volkswagen AG spokesman in Germany.
Corporate executives, including CEO Martin Winterkorn, have said if the dollar stays weak, VW would have to consider manufacturing in the United States. A spokesman said, "A possible factory is far, far away.""
Comment:
It's unclear to me, why the largest export region for VAG, with continuing record setting sales, is loosing so much money.
Diana T. Kurylko
Automotive News
August 27, 2007 - 12:01 am EST
Volkswagen of America is seriously considering moving both of its brands from suburban Detroit to a new headquarters.
VW would move to an area where its sales are stronger, and would shed some employees from its money-losing Volkswagen of America unit, according to an informed source in Germany.
The search is "very serious," and part of the parent company's push to turn around the U.S. business, the source said. The VW group lost $1.1 billion in 2005 in North America and $795 million in 2006.
The move would be tied to a restructuring of Volkswagen of America by new CEO Stefan Jacoby, who assumes his job Sept. 1. A decision is likely within several months, according to the source.
VWoA would move its Audi and VW brands from Auburn Hills, north of Detroit, where it employs more than 1,500 workers. VWoA probably would trim jobs, the source said.
The relocation is being orchestrated by Germany and a small group Jacoby has sent to the United States to assess VWoA and energize restructuring efforts.
Volkswagen of America is looking at a number of cities on the east and the west coasts. Audi's sales are bigger on the west coast, while the VW brand is split between both. Virginia also has been mentioned as possible headquarters site.
The decision to relocate the headquarters is not tied to the building of a U.S. factory.
"There are no concrete plans to mix relocation with a factory. There are misunderstandings that do not make sense," said a Volkswagen AG spokesman in Germany.
Corporate executives, including CEO Martin Winterkorn, have said if the dollar stays weak, VW would have to consider manufacturing in the United States. A spokesman said, "A possible factory is far, far away.""
Comment:
It's unclear to me, why the largest export region for VAG, with continuing record setting sales, is loosing so much money.
08-28-2007, 05:13 AM
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The FX rate for the dollar/euro HAS to be hurting them
All of the euro car companies hedged against the dollar slipping a few years back but those strategies have now matured and the full brunt of the dollars weakness is likely showing on the bottom line. VW and Audi cars sell for a LOT more in Europe and elsewhere than they do in the US, perhaps they need to raise their prices *shrug*
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