VW leaving Michigan

Volkswagen has decided to move their North American operations from Metro Detroit to suburban Washington D.C. The ostensible reason is to attract more highly skilled, younger workers. Apparently, moving from an area which has several high-class engineering universities with strict concentrations on automotive engineering - specifically, The University of Michigan, Kettering University, and Lawrence Technological University - to an area which has several high-class law universities which concentrate on politics is going to attract the type of people who will turn the company around.

I'm sure it makes sense to move your automotive company from the world's heart of automotive design, where every major worldwide manufacturer has a design shop, to the world's heart of political lobbyists. I'm sure it makes sense to move from the center of all U.S. suppliers to the center of all U.S. lawmakers. It makes perfect sense to me.

Now, we're not talking about any factories here. Volkswagen does not make any cars in the U.S. While it could be understandable to move a factory from the Union-heavy, anti-corporate environment of Michigan to a corporate-friendly Southern state, moving your American automotive corporate offices from the heart of the American auto industry makes no sense.

It's no secret that Volkswagen is having problems. They sell European-styled cars in the United States. They are constantly at the bottom in overall quality. They're significantly more expensive than their competitors at Honda, Toyota, Hyundai, Kia, GM, or Ford. They have had only one single inspiring car in the entire history of the company. How can they expect to attract customers.

You need to have something special about your product to compete in today's auto industry. Honda and Toyota trade on top-notch quality. Kia and Hyundai trade on their ridiculously low prices. General Motors and Ford go with a broad-scope attack, but concentrate heavily on a customer-focus appeal and inspiring styling. Volkswagen has precious litle and now they're jettisoning that in order to inexplicably move south.

Either way, let's just chalk it up to yet another major company leaving the state. Dow, Sears-Kmart, Comerica, Volkswagen...how many other states are having four companies as well-known as these moving their headquarters from their state.? On of these days, people in the state are going to realize that you can't have oppressive, over-regulated business practices and high taxes and have any chance at attracting companies to stay.

VW moving HQ out of Michigan
Detroit Free Press

Volkswagen AG is moving its North American headquarters from Michigan to northern Virginia to attract a younger skilled workforce.

"There is going to be a move," said Steve Keyes, a spokesman for Volkswagen of America. "Some people, not all, will be relocated to Virginia. But we will still have a presence here in Auburn Hills.

Keyes confirmed there will be a press conference in Herdon, VA at 10 a.m. today to announce the details of the move.

The German automaker has 1,600 employees at its Volkswagen of America offices in Auburn Hills and Rochester Hills. The Washington Post reported Thursday that the company will move about 400 jobs and invest about $100 million in a move to Herdon, Va., a suburb of Washington, D.C. The paper also reported that about 400 Detroit-area jobs would be eliminated leave 600 positions in Southeast Michigan.

Gov. Jennifer Granholm, who meat with VW of America President and Chief Executive Officer Stefan Jacoby in Lansing Wednesday evening, will make a statement about the apparent move at around noon.