September 7, 2007
Volkswagen re-organizes Canadian operations
Ajax, Ontario – Volkswagen AG announced that it will form a new organization called Volkswagen Group Canada effective January 1st
2008, comprising Volkswagen Canada and Audi Canada. Volkswagen Group Canada will be based in the Greater Toronto Area in Ajax, Ontario.
Stefan Jacoby, incoming President & CEO of Volkswagen of America Inc.
said, “This step is being taken to reflect an even more focused approach to the Canadian automotive market. It will bring independent operations, ready for market expansions and ensuring that the product and strategic needs of the Canadian market are fully represented at a consistently high level”.
Since 1994, Volkswagen Canada has shared a great deal of its operation structure with Volkswagen of America and Audi of America, the U.S. subsidiaries of Volkswagen AG and Audi AG.
In a joint statement, John White, Executive Vice President of the
Volkswagen brand, and Diego Ramos, Executive Vice President of the Audi brand said: “This strengthening of the current Canadian Volkswagen and Audi organization reflects a clear commitment to the Canadian market and the Toronto area as a base for its operations. These very exciting changes solidify the Canadian organization as a whole and will allow us to enhance our focus in effectively serving our dealers and customers”.
In related news, Volkswagen of America has announced that it will relocate its U.S. corporate headquarters from Michigan to Virginia, and also streamline and restructure its operations. Volkswagen of America will begin the transition from its current location in Auburn Hills, Michigan to Herndon, Virginia in April, 2008. The company’s new facility is expected to be fully occupied by the end of 2008. It will house the U.S. headquarters of Volkswagen of America and Audi of America Inc., along with Audi Financial Services, Volkswagen Credit and other affiliated operations.
Volkswagen has approximately 1,400 employees at its Michigan headquarters; of these, 800 are full-time employees and 600 are contractors or employees of service providers. The company plans to transfer 400 positions to Virginia, retain 300 full-time positions and 300 contractors or service providers at the current headquarters, and eliminate approximately 400 positions. The company also expects to add 400 jobs at the new Virginia location; Volkswagen of America received a comprehensive incentive program for the relocation from the Virginia governor’s office, including US$6 million in cash grants.