VW Opened $40M Warehouse in Tenn. for Passat Parts image

VW opened today, June 26th, a $40 logistics center located in Roane County, Tennessee, a move which will reduce the delivery time for the Passat mid-sized sedan components.

The logistics center was built on a 459,000-square-foot (41,300-square-meter) area and at the beginning it will serve as a redistribution center, serving warehouses, but it will expand later on to include spare-parts supply for at least 110 vehicle retailers in the region.

“This new facility serves as tangible proof of the clear commitment that Volkswagen Group of America has to meeting the needs of our dealers and our growing customer base,” Anu Goel, vice president of parts and vehicle logistics at the manufacturer’s U.S. division, said in the statement.

CEO Martin Winterkorn relies on growth in North America in his plan to surpass GM and Toyota and get the first place as the biggest automaker by 2018. VW began manufacturing the US variant of the Passat in 2011 in Chattanooga, Tennessee, but the German automaker plan to make an investment of more than $5 billion to introduce new models, infrastructure and technology in North America in the following three years. VW currently has five warehouses in the United States.

Source: Bloomberg