scoreboard

Now, in addition to the move, VW it cutting jobs. My dad doesn't know yet what is going to happen to his group. He is in a somewhat unique situation, working at VW's headquarters as an employee of T-Systems - known best as purvayors of T-Mobile wireless phone service. So, only time will tell what is actually going to happen.

The way I see it, there are three potentialities. First, they may tell him he has to move to VA in order to keep his position. I think this probably won't happen, given the fact that he is actually employed by T-Systems. I think it would be hard to move contracted employees. Even so, if it was the only option they offered, I can't believe my parents would do it. Having just bought their "retirement" house a couple of years ago, I can't imagine them leaving. Not to mention leaving Michigan. I miss it there and want to go back, so I doubt they'd leave at this point.

Second, my dad and his group could be part of the 600 or so employees VW is keeping in the Great Lakes State. I think this is probably more likely. Though, it doesn't bode well for the future, because surely VW will want to eventually eliminate or move those employees to Herndon. Despite that, there could be a positive in this situation. If my dad stays in Michigan, he will likely have to take more frequent trips to the DC area. Obviously, that likely means more visits with me, even if they're short ones. So that'd be a positive, at least.

Lastly, I could see VW offering some sort of buy-out package to employees in lieu of moving. Whether or not my dad would take that (or an early retirement), I don't know. I can't really see my dad retiring at this point, though. He's still pretty young for that.

While this isn't a huge crisis for me personally, I hope it works out for my mom and dad. With the economy the way it is in my home state, it's unfortunate to see this happening now.

Another thing that I have to mention is that I actually find the move quite puzzling. The cost of living in DC is 53.8% higher than in Detroit. Granted, Herndon is not DC, but it is close enough to also be substantially more expensive to live in. To me that says that VW will have to offer higher salaries than they currently do in Detroit. Maybe they expect to get better quality workers than in Detroit, but I actually doubt that. Despite Michigan's horrible economy and worst unemployment rate in the country, I still think it is the best place for workers trained in the technical aspects of the automotive industry. I predice that, in the long run, the move will actually hurt VW.

Also, I have a hard time understand why they think a move to VA will jumpstart their business. While it is true the majority of VW owners live on the east cost (and not in Michigan), slow sales are slow sales. If people don't want your cars, they aren't going to buy them just because you moved your HQ to a new state. I'm sorry, but Michigan's crappy economy has nothing to do with your poor sales. Maybe if you had a truly unique car design, that might increase sales. Perhaps if you changed the cars so they weren't so boring looking, it might change sales. Moving your HQ will have no effect if you continue to have a product line that inspires indifference. (This coming from a guy who drove for the last 5 years - until March of this year).

I'm sure VA is giving all sorts of kickbacks and tax breaks though. Unfortunately, I think VW will end up regretting this decision.