Huggybear Member Username: Huggybear
Post Number: 310 Registered: 08-2005
| Posted on Tuesday, September 04, 2007 - 12:46 am: | |
http://www.thecarconnection.co m/Auto_News/Daily_Auto_News/Vo lkswagen_Moving_to_D_C_Area.S1 73.A13305.html Unpleasant but not completely unexpected; this is fast moving from speculation to the concrete details. (Message edited by Huggybear on September 04, 2007) |
Patrick Member Username: Patrick
Post Number: 4888 Registered: 10-2003
| Posted on Tuesday, September 04, 2007 - 1:02 am: | |
VW will have a hard time "changing" their image and turning a profit. HQ relocation is hardly a step. They should start from scratch in the US...as in, kill the logo and the emo image. |
Dustin89 Member Username: Dustin89
Post Number: 126 Registered: 07-2006
| Posted on Tuesday, September 04, 2007 - 1:05 am: | |
This is awful news in so many ways. I'm a VW enthusiast (I have a '79 Bus), and I always thought it was cool for VW to have a presence in our area. Besides the jobs--I know some people who will be affected by this--they will also leave behind their nice, newer office buildings in Auburn Hills. I believe both of them have Hamlin Road addresses. Auburn Hills is one of the "corporate" suburbs in our area, and it appears VW will be moving to a similar situation near D.C. I agree with the POV espoused in the link that a geographic move will not change the reality of their North American situation. I believe they make very good, stylish vehicles, and it is sad to see this company saying it is in trouble when I believe its basic auto design principles are solid. It seems weird that an auto company is locating in D.C...I would have figured that they would've located in their old US home of New Jersey. |
Lefty2 Member Username: Lefty2
Post Number: 75 Registered: 07-2007
| Posted on Tuesday, September 04, 2007 - 1:21 am: | |
VW's loss. Maybe they can buy more politicians in DC They will definitely lose market share as they will be out of the buzz of Motown. I figured as much. It will be a hard transition for employees for sure |
Mayor_sekou Member Username: Mayor_sekou
Post Number: 1437 Registered: 09-2006
| Posted on Tuesday, September 04, 2007 - 1:30 am: | |
VW's suck anyway. What's the point of buying one when for a few grand more you could just get an Audi? Thats what killed the Phaeton and what is probably hurting Passat sales. The location of the North American headquarters has nothing to do with slumping sales it is more so the lackluster product that moving to DC wont fix. |
Gravitymachine Member Username: Gravitymachine
Post Number: 1787 Registered: 05-2005
| Posted on Tuesday, September 04, 2007 - 8:40 am: | |
interesting, this is all news to a friend who works at VWoA |
Thejesus Member Username: Thejesus
Post Number: 2004 Registered: 06-2006
| Posted on Tuesday, September 04, 2007 - 8:43 am: | |
Let's just hope this doesn't start a trend... If VW does it and it works out well for them, next thing you know Chrysler will say, "Hey, if they can do it, so can we." |
1953 Member Username: 1953
Post Number: 1451 Registered: 12-2004
| Posted on Tuesday, September 04, 2007 - 8:59 am: | |
Well, now I can't ever buy a VW. Not that I would have anyways... |
Dannaroo Member Username: Dannaroo
Post Number: 147 Registered: 05-2006
| Posted on Tuesday, September 04, 2007 - 9:03 am: | |
I know for a fact that the move is not yet a done deal and there will be meetings today and tomorrow with the OC Exec (and a few others from my office) and the new President at VW NA. Of course, I am too low on the totem poll to be even a parasite on a fly on the wall at that meeting so for now, that's all the news I have. And it was VW that called for the meetings so they may just be looking to see what sort of last minute deal they can get out of the county. (Message edited by Dannaroo on September 04, 2007) |
Gravitymachine Member Username: Gravitymachine
Post Number: 1788 Registered: 05-2005
| Posted on Tuesday, September 04, 2007 - 9:18 am: | |
quote:If VW does it and it works out well for them, next thing you know Chrysler will say, "Hey, if they can do it, so can we." not nessesarily, vw has no R+D here at their offices, they are merely offices...chrysler on the other hand would have to relocate their entire operation including engineering, design, testing, etc if there were to completely vacate the state |
Digitalvision Member Username: Digitalvision
Post Number: 328 Registered: 11-2003
| Posted on Tuesday, September 04, 2007 - 9:44 am: | |
Doesn't surprise me. The "Big 3" mentality of the workforce (including executives) is choking and then throw in the fact the Big 3 also tends to be ten years behind on the technology curve, especially communications. VW is on the modern curve of a lot, and it's hard to have the tech infrastructure in an area where the largest industry likes to live a decade behind. And yes, if this is successful, I could see Chrysler doing it but to someplace like New York city. Not GM or Ford, but Chrysler, I could see it as a gradual leave. You also should keep in mind there are some cutting-edge suppliers like BorgWarner who get a bunch of work from VW. In short, this is not good. Our politicians, as usual, are useless. Of course, if I think about it, of my friends from 5 years ago, I am the only one who has stayed in Michigan. |
Jelk Member Username: Jelk
Post Number: 4560 Registered: 10-2003
| Posted on Tuesday, September 04, 2007 - 9:51 am: | |
quote:They will definitely lose market share as they will be out of the buzz of Motown. You really believe that? Seriously? How sad. Do you actually know someone who purchased a VW because of "the buzz of Motown"? VW's decision to leave Michigan is yet another setback for our state's economy. The typical "their loss" reaction from my fellow Michiganians is more disappointing. At some point you will have to have to accept that inherent problems with Michigan's economy and culture are preventing a recovery. |
Danindc Member Username: Danindc
Post Number: 3164 Registered: 10-2003
| Posted on Tuesday, September 04, 2007 - 10:01 am: | |
Dulles Corridor = Auburn Hills with traffic. Blech. |
Lefty2 Member Username: Lefty2
Post Number: 83 Registered: 07-2007
| Posted on Tuesday, September 04, 2007 - 10:06 am: | |
I didn't say people Buy cars because of buzz of a companys location. I meant the press and experienced employees are here, they care more about politics in DC. |
Jelk Member Username: Jelk
Post Number: 4562 Registered: 10-2003
| Posted on Tuesday, September 04, 2007 - 10:14 am: | |
Yeah without the press and experienced employees here in Michigan it's a wonder Honda and Toyota manage to stay in business. Whatever pal. |
Iheartthed Member Username: Iheartthed
Post Number: 1528 Registered: 04-2006
| Posted on Tuesday, September 04, 2007 - 10:16 am: | |
The Dulles Corridor isn't nearly as far removed as Auburn Hills. Aren't they eyeing Arlington? Which would be more of an equivalent to a Windsor location than an Auburn Hills. |
Track75 Member Username: Track75
Post Number: 2582 Registered: 10-2003
| Posted on Tuesday, September 04, 2007 - 10:17 am: | |
Frankly, VW was a bit odd for locating in SE MI in the first place. The general rule has been that European automakers have their US HQ on the East Coast and Asian automakers have their HQs on the West Coast. There's a few outliers, like Porsche in Reno and Nissan in Nashville (closer to their plants) but for the non-technical aspects there's no major advantage to being in metro Detroit. While the pool of experienced auto managers is deeper here, selling "Detroit" to outsiders is a challenge. I think the decision boils down to recruitment challenges and management's personal living preferences, not necessarily in that order. |
Iheartthed Member Username: Iheartthed
Post Number: 1529 Registered: 04-2006
| Posted on Tuesday, September 04, 2007 - 10:19 am: | |
I can see them doing this as a way to downsize without having to actually lay people off/fire people. That's the only thing that makes sense, other than some type of tax incentive. I doubt they are getting a better incentive to go to DC than they could get in the OC, but I'm just speculating. Besides, I don't think many people even know/knew that VW was in Auburn Hills. ETA: In current economic climate, they might have more people willing to leave with them than they're banking on... (Message edited by iheartthed on September 04, 2007) |
Rjk Member Username: Rjk
Post Number: 834 Registered: 11-2003
| Posted on Tuesday, September 04, 2007 - 10:24 am: | |
"Besides, I don't think many people even know/knew that VW was in Auburn Hills." <-------Raises hand. |
Digitalvision Member Username: Digitalvision
Post Number: 329 Registered: 11-2003
| Posted on Tuesday, September 04, 2007 - 10:25 am: | |
No, it's not the only thing... The automotive community here is very stuck in it's ways, anti-import as well as pro-status-quo. A company looking to turn around cannot be mired up in that mess. One of the things people forget is that the Detroit region, in general, is an EXTREMELY conservative business climate that is risk averse (and part of what holds up Detroit development is that risk aversion). We simply do not have an entrepreneurial/innovation culture, save for some enclaves in places like Ann Arbor. |
Pjazz Member Username: Pjazz
Post Number: 81 Registered: 04-2005
| Posted on Tuesday, September 04, 2007 - 10:47 am: | |
Quote VW's suck anyway. What's the point of buying one when for a few grand more you could just get an Audi? VW owns Audi. |
Ndavies Member Username: Ndavies
Post Number: 2755 Registered: 10-2003
| Posted on Tuesday, September 04, 2007 - 10:48 am: | |
VW won't have any better luck recruiting on either coast. Anyone with experience in the auto industry is going to avoid them. People without automotive experience will avoid automotive since it's no longer considered a cutting edge industry. VW's product quality is sinking faster than a rock. Their product styling is bland at best. They tried to market themselves along with BMW and Mercedes. Their brand is considered at best midpriced. Their products are extremely overpriced. Their attempt to market a luxury vehicle was a complete disaster. The launch of the last golf/rabbit was also full of major issues. They are getting absolutely hammered by the falling dollar since they don't have any plants in the US. VW has much larger problems than the US headquarter's location. Any move will just drain more cash out of their pockets. People used to go into VW looking for a cheap, well engineered product. They currently offer neither a cheap, nor well engineered product. And for the doubters, This region is still the number 1 developer of automotive technology in the world. There is a reason Toyota and a large number of foreign tier 1 suppliers are expanding their R&D facilities in SE Michigan. We have an abundance of well trained, highly motivated auto engineers. Over the next 10 years we will see a large increase in Asian manufacturers opening technology offices here. |
Dustin89 Member Username: Dustin89
Post Number: 128 Registered: 07-2006
| Posted on Tuesday, September 04, 2007 - 11:39 am: | |
Ndavies...I would argue that the basic Rabbit is a cheap, well engineered product. The Passat is an extremely competitive sedan. The Touareg is one of the most well-engineered, near-perfect SUV's around. I think VW is the only automaker--Mercedes dropped out of it for a few years--to always have at least a few diesel models in their lineup. The Jetta is a competitive small sedan. The New Beetle is a good car and a successful example of retro styling. If you compare this to other automakers, you could make the argument that VW's product line is not that troubled...look at the disastrous new Chrysler Sebring, the ugly new redesign of the ancient Ford Focus, continuing on its original underpinnings, unlike its European counterpart; and others. VW's current generation of vehicles are a bit more blandly stlyed than the previous, but they are still stylish and with many more features than their competitors. I'm not denying that this company has issues, and it could do better with quality. But I'm hoping that, as they step back and try to revamp their products to increase US sales, that VW keeps the elements that makes their vehicles unique: many standard features, AWD & Diesel cars in the lineup, and the concept of stylish small & midsized cars. |
Classico Member Username: Classico
Post Number: 54 Registered: 12-2005
| Posted on Tuesday, September 04, 2007 - 12:40 pm: | |
Not good news for my sis. She has been on a HR internship with them for over a year. They just kept extending it. She didn't find out until not too long ago why this was the case. I'm not even surprised anymore. |
Umcs Member Username: Umcs
Post Number: 16 Registered: 06-2007
| Posted on Tuesday, September 04, 2007 - 1:07 pm: | |
My experience with the quality of Audi was horrible. That was why I didn't buy another vehicle from them. Although the service staff was excellent, the engineering on the vehicles was bizarre and repairs, (once out of warranty), were extremely expensive. Moving administrative offices out of Detroit isn't going to solve that problem. |
River_rat Member Username: River_rat
Post Number: 292 Registered: 02-2006
| Posted on Tuesday, September 04, 2007 - 2:01 pm: | |
Actually the property VWoA is considering is closer to Tysons Corner. The metro will be there in 5-6 years providing great transportation. And don't think Cerebrus (Chrysler) isn't looking as well. |
Cambrian Member Username: Cambrian
Post Number: 1561 Registered: 08-2006
| Posted on Tuesday, September 04, 2007 - 2:07 pm: | |
This is only newsworthy due to the all ready sad state of our economy. They never had a really big foot print here. I have only ever known of a very small handful of people that worked for them, and I never heard of local companies that were awarded contracts by them. But agreed, that tax revenue will be missed. |
Thejesus Member Username: Thejesus
Post Number: 2010 Registered: 06-2006
| Posted on Tuesday, September 04, 2007 - 2:11 pm: | |
"chrysler on the other hand would have to relocate their entire operation including engineering, design, testing, etc if there were to completely vacate the state" I'm not talking about them completely relocating their operation...I'm talking about them relocating their headquarters, which wouldn't be too difficult...and once that happens, it paves the way for other operations to follow over time... |
River_rat Member Username: River_rat
Post Number: 293 Registered: 02-2006
| Posted on Tuesday, September 04, 2007 - 2:12 pm: | |
Cambrian, does the same hold true for Cerebrus? |
Dougw Member Username: Dougw
Post Number: 1874 Registered: 11-2003
| Posted on Tuesday, September 04, 2007 - 2:13 pm: | |
The article mentions that VW employs 1500 people in the area, are there really that many? And are they all located at the Auburn Hills office complex? |