Volkswagen of America, Inc. has announced it will move its corporate headquarters to Fairfax County, Virginia, together with its sister company Audi of America, Inc. and an array of other companies such as Audi Financial Services and Volkswagen Credit. Virginia Gov. Tim Kaine, a Democrat, worked for seven months and authorized $6 million in incentives to bring Volkswagen in his state.

Volkswagen is currently headquartered in Auburn Hills, a Detroit suburb, and employs around 1,400 people. Of those, about 600 to 700 will remain in a call center to provide technical functions. Volkswagen of America Inc. President Stefan Jacoby said upon the announcement that the carmaker also ponders whether to open a U.S. production plant. Gov. Kaine also presented Jacoby with Virginia's flag.

Jacoby is also in charge of a five-point shakeup plan to restructure Volkswagen operations in the United States, which is the world's largest car market, which includes developing special models for U.S. consumers.

"Volkswagen of America is eager to embark on a long and fruitful partnership with Virginia, and to call Fairfax County home. Virginia is a perfect fit for us as we take our company in an aggressive new direction," said at the announcement ceremony Jacoby, who is president and CEO of Volkswagen of America. "I thank everyone in the Fairfax County government and community for making us so welcome in our new neighborhood."

"Volkswagen" means "people's car" in German. The company was founded in 1939 and started off with the VW Kdf-Wagen, later known as the VW Käfer - or Beetle. The Volkswagen Group (made up of Audi, Bentley, Bugatti, Škoda, Lamborghini, SEAT and Volkswagen) is the world's fourth largest car producer after Toyota, GM and Ford, respectively.