Future Volkswagen U.S. Factory Might Spur Headquarters Relocation

Volkswagen AG, Europe's largest carmaker, said it's considering adding a U.S. auto-assembly plant that might also result in the company moving its U.S. operations out of Michigan.

``We're definitely studying possibilities for more North American production,'' Keith Price, a spokesman for Auburn, Hills, Michigan-based Volkswagen of America, said in an interview today. ``If and when we set up a production facility, that could mean a change in the location of our current facilities. There's no specific plan in place to move from Auburn Hills.''

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david999 - 8/20/2007 1:34:28 PM

+1 Boost

Having VWs built in Mexico is what contributed with killing sales in North America. Quality from vehicles produced there have been terrible. Would be a smart move opening a plant in the U.S. or Canada.

nybimmer - 8/20/2007 3:46:17 PM

-1 Boost

Building poorly engineered cars and making bad marketing decisions are what killed VW's sales in North America.

It ethat VW doesn't know how to do a business case - i.e. if an idea requires us to invest $x then we need to make 130% of $x in order for the idea to make sense for us. I would really love to see a P/L of VW's operations - (a) surely the Phaeton was a blood-bath (glass factory, compete with Audi's A8, etc); (b) Bugatti can't be making any money; the FWD Passat/Golf/Jetta/Rabbit/A3/TT are all so visually 'front-heavy' that they look like they will flop over; (c) gee the US dollar has been weak for about 10 years - maybe we should finally build a US factory.

Currency speculators...VW's interest in building a US factory is a leading indicator that the US dollar is about to really strengthen - ending the era of cheap stuff in WalMart and lowering the price of Euro cars.
You heard it here first.

I95SPEEDINGTICKETS - 8/20/2007 4:02:00 PM

-1 Boost

^^^^^^^^You Fool^^^^^^^^

If the dollar is about to up against the foreign currencies why on earth would anyone want to shell out serious Capital in building a production Facility in the USA ?

That would mean increased expenses now that the dollar is going to gain in value ( According to you)

Good Business states you buy low and sell high hence invest when currency is low hence low US expenses (Labour, Costs) and sell to higher currencies not wait till dollar is high and then start building in USA.

Why do you think Manufacturing in the UK is at an All Time Low ?

Hint: THE POUND HAS BEEN TOO BLOODY STRONG FOR TOO BLOODY LONG.

TWAT.

david999 - 8/21/2007 9:00:07 AM

+1 Boost

Caltrans, you confuse me with david989.