INDUSTRY NEWS
Volkswagen Moves U.S. Operations to VirginiaAUBURN HILLS, MI (Sept. 6 , 2007) - Volkswagen of America Inc. (VW) announced that as part of its new strategic direction, it will relocate its U.S. corporate headquarters to Virginia and also streamline and restructure its U.S. operations. The new business strategy is intended to bring its brands, Volkswagen and Audi, closer to customers, increase competitiveness, and achieve sharper focus on key markets. The transition from its current location in Auburn Hills, Michigan to Herndon, Virginia will begin in April 2008. The new 185,000-square-foot facility is expected to be fully occupied by the end of 2008, and it will house VW's U.S. headquarters and subsidiaries. VW says it received an attractive, comprehensive incentive program for the relocation that includes $6 million in cash-grants from Virginia Governor Kaine's office. "With these changes, Volkswagen of America drives the future," said Stefan Jacoby, incoming president and CEO 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." Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen AG, added, "We are strongly focused on the U.S. 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 U.S. customers well and add many new customers." In changing the strategic direction of the automaker, Jacoby said he will implement a new plan that includes five pillars: product, brand positioning, dealer network, organization and, ultimately, the possibility of local production. A premium will be put on connecting more with customers, and fostering a culture of fresh ideas and bold thinking. Additionally, the Company will focus efforts on producing more cars designed specifically with the U.S. market in mind. "This move and new corporate strategy will benefit our employees, our dealers, and our customers. Market conditions and business strategy 30 years ago dictated we move to Michigan; today they dictate we move to Virginia," said Jacoby. "With this move and with our new corporate strategy, Volkswagen of America drives the future."
(Source: Volkswagen of America
Inc.) 
