New York - Volkswagen of America is expected to move its headquarters from Auburn Hills near Detroit in Michigan to Herndon near Washington, The Wall Street Journal reported Thursday. The move will involve an investment of 100 million dollars, according to the report. Volkswagen of America currently employs 1,400 workers. Several hundred job losses are expected as a result of the move, which is due to bring 400 jobs to Herndon in Virginia state.
The company is expected to announce 400 redundancies at Auburn Hills with 600 jobs remaining at the site.
Volkswagen has made losses of over 2.5 billion euros in North America over the last five years. The company does not have an assembly plant in the United States but has discussed building one should its fortunes improve.
The Volkswagen plant in Puebla, Mexico, was working at full capacity to produce 400,000 cars this year. Volkswagen imports some of the models sold in the US from Europe.
