It sounds like their of way to downsize since they expect most workers won't follow the office. Seems like an expensive way to do it though. Often times these decisions are whims of senior management and their spouses, ie. I don't like Auburn Hills because I can't find a decent stylist.My first impression is that this is not a smart move. Very high cost of living (cost of homes). Low unemployment - how's that help VW is they decide to follow with a factory? I'm just not seeing the wisdom of this....
Yep, sure does. However the press release will say that the reasons were access to highly skilled labour, blah, blah... Why does Calagary Alberta have the second highest number of head offices in Canada? Answer: lowest taxes. For some reason highly paid senior mgmt doesn't like paying taxes.^^^^ Oh trust me that happens. My last job we moved to Herdon because 75% of senior management lived within 10 minutes of the new building. It happens...oh does it ever.
You hit it on the head.It sounds like their of way to downsize since they expect most workers won't follow the office. Seems like an expensive way to do it though. Often times these decisions are whims of senior management and their spouses, ie. I don't like Auburn Hills because I can't find a decent stylist.
I worked for an organization based here. They got a new CEO from Boston. Within a year, the company broke a brand new lease (that cost some bux), fired everyone (again, more $), and moved to Boston, with it's higher labor costs ($$), higher living costs ($$$). And they got took space in a very high rent district ($$$$). All of this for a company on the knife edge of bankrupcy.Do you honestly believe that?
That the ridiculous nonsense that regional governments do to each other. Same thing happens in Canada. Companies know that this happens and they play states/provinces off against each other. In the end, the taxpayer gets screwed. :thumbdownFrom the article
"Gov. Timothy M. Kaine (D) authorized incentives worth $6 million to lure Volkswagen here, including a $1.5 million cash payment in the next year and $4.5 million over five years, starting in 2011."
I mean our school system, roads, day laborer site, etc etc couldnt have used that money.
Bwahahahaha! The last thing VWoA headquarters is going to want to see is their customers!Jacoby added that the company decided as of 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."
They should have just waited until they decided to build another assembly plant here, set it up in Alabama, the Carolinas, or whereever, and then move the headquarters there. Gut out the existing deadwood out of Auburn Hills, move the productive team members to a more pleasant climate, lower cost of living, and feed off the synergy of the other German plants (MB, BMW).I wish the Germans would wake up. You can fire people or lay them off here in the US. They could have cleaned out Auburn Hills and reloaded and it would have been much much cheaper.