Do low-class people drive VW?

formatting link
Volkswagen Moving to Herndon U.S. Unit to Bring 400 Jobs From Michigan

By Zachary A. Goldfarb Washington Post Staff Writer Thursday, September 6, 2007; D01

Volkswagen of America plans to announce today that it will move its headquarters to Herndon, as part of a new corporate strategy to for revamping its sagging auto business.

The company said it would bring 400 jobs to the region and invest more than $100 million to set up operations in a new office building in Woodland Park near Washington Dulles International Airport.

The move is part of a corporate restructuring that would eliminate 400 positions, leaving 600 employees and contractors in Auburn Hills, Mich., outside Detroit.

Volkswagen of America's new president and chief executive, Stefan Jacoby, said in an interview yesterday that Northern Virginia's high- quality schools, skilled workforce and proximity to the airport made it attractive.

"Fora young talent, 35 years old, to come here with his family. . . is a very important factor," Jacoby said. "By reducing this organization by 30 percent, you need even more talents, more creative people, more motivated people."

Jacoby added that the company decided in early 2006 that it wanted to move to the East Coast, where most of its customers are. "You want to work in an environment where you see your customers, where you see your cars on the road," he said. "You don't want to work where you basically see only American cars of the Big Three," General Motors, Ford and Chrysler.

Gov. Timothy M. Kaine (D) authorized incentives worth $6 million to lure Volkswagen, including a $1.5 million cash payment in the next year and $4.5 million over five years beginning in 2011. The company won't receive the grants until it meets benchmarks for employment and investing in the region. Fairfax County will spend at least $1.5 million to accelerate road and land projects to ease Volkswagen's move.

Kaine raised the possibility that the move would make it more likely that the company would choose to expand in the state if its fortunes improve. Volkswagen does not have an assembly plant in the United States but has discussed building one. Its last U.S. plant, in Pennsylvania, closed in the late 1980s.

"We're also mindful of the fact that Volkswagen, as they succeed, they may want to put another presence in North America and if they have a strong anchor in Northern Virginia that could lead to further activity," Kaine said.

Volkswagen, which makes Volkswagen, Audi, Lamborghini and Bentley cars, is part of the Volkswagen Group, based in Wolfsburg, Germany. The company had $138 billion in sales in 2006 and is the world's fourth-largest producer of passenger cars.

Volkswagen has a strong history in the United States, where customers flocked to its Beetle and Rabbit brands in the 1960s and 1970s. But in recent years, it has struggled. Since 2000, its share of the market for passenger cars in the United States has fallen substantially and is now less than 2 percent.

"Lately we are not progressing with our growth strategy as we wish to do so in the American market," Jacoby said. "This is the single biggest market worldwide."

As it seeks to reverse the declines, Jacoby said, Volkswagen will focus on models in certain categories -- for example, small sport- utility vehicles with an environmental slant, or passenger cars to compete with the Toyota Corolla or Honda Accord.

Jacoby also said the company needs to decentralize and slash bureaucracy, one goal of the job cuts. About 150 people in Detroit are expected to move to Herndon, including much of the corporate leadership. The rest will include those in marketing, sales and other white-collar jobs.

A consultant retained by Volkswagen contacted state economic officials in February to discuss moving here as it considered 14 cities. From there, the process moved rapidly, with little personal involvement by the governor. In early August, Virginia learned that its bid to host Volkswagen was successful.

"I really thought with VW the reason we won was our numbers spoke for themselves: high median income, low unemployment, very connected to the global marketplace," Kaine said.

The investment by Volkswagen would be the largest in Fairfax since November 2004, when Booz Allen Hamilton announced it would create as many as 4,600 jobs in the county with a $133 million investment over five years.

The news is a setback for Michigan Gov. Jennifer Granholm (D), who has been struggling to keep her state's economy afloat as its manufacturing base declines. Jacoby flew to Detroit last night to meet with Granholm. She has vowed to keep auto jobs in Michigan.

Kaine, Jacoby and Gerald L. Gordon, president and chief executive of the Fairfax Economic Development Authority, are to attend a ceremony this morning at the 185,000-square-foot headquarters. Employees are to begin occupying the headquarters in April, and the move should be completed by the end of 2008.

Reply to
Mike
Loading thread data ...

To answer your subject line question, many people with no class buy current VWs. There was a time when lower economics class people bought them. "Low-class" is usually a detrimental term for people for whatever the reason. Has nothing to do with income or social class.

formatting link

Reply to
Dave

Mpfffff.... we keep a 1999 VW Eurovan Winnebago. Not hardly the "People's Car" at a list price north of $50,000 at the time.

But then, only a "certain class" of people keep RVs in any case.

Peter Wieck Wyncote, PA

Reply to
pfjw

I know I do- and very often i pick my nose and scratch my ass during down shifts and hard turns. But that's just me..... Cam

Reply to
ToniTesticalli

If the question was "Do folks in the US income 5th quintile normally buy VWs or are typical VW buyers in the lower 4 quintiles?" then my guess would be the lower 4 quintiles. But to get in the fifth quitile you only need to earn $88,000 or so. There are lot of people earning less than that that might be offended if you call them low class. Kind of like educated. Some pretty stupid people with college degrees. Some pretty educated people that might have just a high school degree.

My parents had a camping trailer the whole time I recall growing up. We used it twice a year for spring break and summer break. 5 kids piled up in the car with 6 adults. Sometimes more kids if my sister went with us or my other sister would bring a friend. All piled inside a relatively smal Hi-Lo. Slept 8 as long as you were not too heavy for the 4 bunks.

Reply to
Jim Behning

Around here *really* low-class people ride the bus.

I view VWs as understated but classy, certainly not the People's Car of days gone by.

My 1986 Jetta fits that image; my 1992 Mitsubishi Delica looks like something from outer space. :-)

Laura Halliday VE7LDH "Non sequitur. Your ACKS are Grid: CN89mg uncoordinated." ICBM: 49 16.05 N 122 56.92 W - Nomad the Network Engineer

Reply to
laura halliday

Being in Michigan is not VW's problem. They will still have the same problem in Herndon. They have the heads up their asses. No easy fix for that. Andy

Reply to
Busman

Sad but true. However, Herndon is anything but "low class" compared to Michigan. Also sad but true seeing as it's just outside Our Nation's First Swamp. I'm willing to offer my services as a rectal-cranial inversion reversion specialist however, and I'm even local! :)

nate

Reply to
Nate Nagel

Reply to
Andrew

In response to your subject line: yes ...as do folks from all socio-ecomomic classes. Class is as class acts.

What does sadden me somewhat is that this is yet >

formatting link
>

Reply to
griff

Losing VWOA is a plus for Michigan. The rotting fish stench from the corporate headquarters won't last long once the building is empty. They might actually be able to lease it to a decent tenant (one that employs fewer litigators would be a huge improvement). Andy

Reply to
Busman

what is sad, is those that keep their heads buried in nothing but vw's don't realize that many(and I mean many) other vehicle manufacturers may "back" the aftermarket on repop parts(IE big money for them), but they actively pursue copyright and trademark infringements much more viciously than vw ever thought about doing. Folks gotta protect what is theirs.... those that what that(whatever it is) for free, whine about it.... as you did here...

Reply to
Joey Tribiani

Reply to
none2u

Joey, I never said that I wanted anything much less anything for free from VWOA. The way that they treated the owners of their vehicles going back into the

80s is tragic. Going after the shops that helped keep the same vehicles on the road long after VWOA had given up on supporting the owners of those vehicles was even worse. If they want to protect what's theirs, that's just fine but does that not obligate them to provide some level of service to those who own the vehicles that they produced? Could it possibly hurt VWOA to take a hard look at the reasons for their pitiful sales and come up with a different approach? They've had the same issues off and on since going down this road in the 80s. Is it asking too much for them to learn from their mistakes? I look at the whole situation as VWOA trying to kill a hobby that I've participated in since 1978 when I got my first car - a 74 Thing. I hardly consider my position to be "whining" as I could really care less what they do and obviously, they aren't asking for my opinion. I've moved on to many other vehicles since not feeling obligated to VW. Fords, Dodges, an Isuzu or 2, 3 Mercurys, and even a 1952 Ural M72 motorcycle (undergoing a ground up resto). It sure is nice having vehicles with AC and auto trannys too! Someday, I'll get around to a resto on my 63 VW camper too. Andy

Reply to
Busman

MotorsForum website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.