VW: Backpedaling on U.S. Plant Comment. Déjà Vu.
By Michelle Krebs November 16, 2007Volkswagen of America posted a short press release on its media Web site, backpedaling on what a company official reportedly told a reporter at the Los Angeles Auto Show about its plans for the construction of a U.S. assembly plant.
Déjà vu.
The German automaker did similar backpedaling when one of its executives revealed plans to move its headquarters out of Detroit. And guess what? VW is moving out of Detroit.
What We Meant to Say
The press release posted Thursday said that Volkswagen of America announced during the Los Angeles auto show media days this week that it âwill provide more detail on possible additional North American production capacity within the next six months.â
In the statement, Volkswagen of America CEO Stefan Jacoby, who just took over the subsidiary in September, said: âWe are currently investigating the feasibility of additional North American production capacity. There are a number of factors that we need to consider in this decision and we will make an announcement in the next six months on whether or not we will proceed with this initiative.â
The press release apparently was issued in response to an article in the Detroit Free Press that reported VW, indeed, planned to build a plant in the U.S. and would announce where it would be built in the first half of 2008.
Jacoby reportedly provided detail to the newspaper, like the plant location must be in a time zone that shares working hours with VW's headquarters in Germany and Michigan was not ruled out as a candidate for the new plant (doubtful as that is). He used the opportunity to praise Michigan Gov. Jennifer Granholm, stung by this summer's announcement of VWâs departure from her state with virtually no official warning.
Jacoby reportedly said other key criteria for a U.S. plant are infrastructure, including access to transportation and the availability of a skilled workforce. In the past, he has noted the rich supplier base in the Southeast that serves the BMW and Mercedes-Benz plants. He was reported as saying the plant would produce at least 200,000 vehicles a year and would begin production in 2011 or 2012.
Too much detail to be a lost in translation issue. We'll watch for what happens next June or July .
Déjà Vu: Headquarters Not Moving; Not!
The recent recantation is reminisicent of an incident in which VW vehemently denied that one of its executives revealed to reporters plans to move its U.S. headquarters out of Detroit. The executive provided detail on the process of choosing a location for a new headquarters and the reasons for a move.
When the story (written by yours truly) appeared in the Detroit Free Press, company executives insisted wasn't true.
However, VW, indeed, announced in September that it was moving to new headquarters in Virginia.
Fresh Starts
Previous VW executives have suffered similar foot-in-mouth disease and blamed the media for shodding reporting. Spin is one thing and expected. But if a company doesnt' want information in the public domain, then donât dispense it.
Volkswagen is looking for a fresh start with its headquarters move to Virginia and its new management team. It wants not just a change in the geographic landscape but a change in thinking, Jacoby told a conference call of reporters in September. It wants to boost its image â and sales -- in the U.S.
It should start with integrity and credibility -- and stop shooting the messenger.
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Sad. VW USA keeps shooting itself in the foot. Perhaps it's because its parent , for cultural or management reasons, simply cannot understand the USA, its car buyers, or its marketplace.
It would be great for auto corespondents to outline the reasons for this attitude. Does it come from the top down? Is it an attitude bred in German culture (BMW seems to have grown past it, as well as now building many of its products in the USA).
Perhaps VW should be like Fiat and give up the USA market? They would stop loosing money here, for sure.
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