Volkswagen to shift US headquarters, cut jobs

09/06/07 - newratings.com

NEW YORK, September 6 (newratings.com) – European car giant Volkswagen AG (VW-EUR) Thursday announced plans to move its US headquarters to Virginia from Michigan and eliminate 400 jobs.

Germany-based Volksawagen’s decision to shift its US headquarters comes after four consecutive years of losses in the country. The company plans to move 400 jobs to the new headquarters, besides cutting down 400 jobs in Michigan. Volkswagen will, however, retain 600 people at the Michigan office, the car giant stated. The company is also expected to unveil a restructuring programme soon for its US operations. The Washington Post reported that Volkswagen’s decision to shift its headquarters was aimed at getting closer to its customers in the East Coast.