Volkswagen Commits $125 Million to Flagship New York City Dealerships
Volkswagen Group of America is investing $125 million to establish flagship Audi and Volkswagen dealerships on Manhattan’s 11th Avenue, aiming to boost its US market presence from 2010.
Volkswagen Group of America has committed $125 million to develop flagship Audi and Volkswagen dealerships in Manhattan, targeting increased sales and visibility in the US market. The investment covers the acquisition and renovation of a 265,000 square-foot building on 11th Avenue, previously occupied by Potamkin General Motors, in one of the city’s highest-traffic automotive corridors.
Volkswagen’s Major New York City Investment
Strategic Importance of the Manhattan Location
Volkswagen’s project forms part of a broader strategy to grow its US business, with New York singled out as a crucial market for both Volkswagen and Audi. The new site is designed to serve as a high-profile showcase for both brands, directly addressing the importance of Manhattan as a commercial and cultural centre for automotive retail. The facility’s location on 11th Avenue places it among the city’s main automotive retail destinations, offering convenience for customers and strong brand visibility.
Volkswagen Group has selected the Open Road Auto Group to operate the site, bringing local experience to the project. According to the company’s plans, the Volkswagen showroom will begin selling vehicles in early 2010, with the full renovation scheduled for completion in spring. Audi’s transition into the new space will follow, with its new showroom concept arriving by the end of 2011.
New Showroom Concepts for Both Brands
Both dealerships will adopt their respective latest showroom designs. Volkswagen’s “white frame” concept and Audi’s “terminal” design will be implemented, aligning the New York outlets with the brands’ global retail standards. The move is intended to offer a premium customer experience and reinforce the brands’ image in a competitive metropolitan market.
- Volkswagen’s "white frame" showroom design
- Audi’s "terminal" showroom concept
- Combined 265,000 sq ft retail space
Impact on US Expansion and Local Economy
Volkswagen’s investment in New York is part of a wider push to increase US sales, which the company has identified as a priority. By establishing high-visibility flagship sites in a key urban market, Volkswagen aims to strengthen its dealer network and attract more buyers to both brands. The choice of Manhattan highlights the importance of the New York market for Volkswagen and Audi, both in terms of sales potential and brand influence.
The project also brings a substantial investment into the local economy, supporting construction and dealership jobs during the renovation and operational phases. The presence of flagship dealerships is expected to raise the profile of both brands in New York and could serve as a template for future urban dealership projects in the US.
Volkswagen’s $125 million spend marks one of the largest single-site dealership investments in the US at the time. This significant financial commitment signals Volkswagen’s intent to compete more aggressively in the US market and to establish a stronger presence in major urban centres.
