Volkswagen announces plan for further investment in Tennessee

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Volkswagen Group of America (VWGoA) announced today that it will invest $40 million to build a warehouse in Roane County, Tenn. for distributing domestic auto parts for the Chattanooga-made Passat. The 400,000-square-foot facility is expected to open by spring 2013 and will employ up to 45 people by 2016.

Addressing the need for increased infrastructure, the facility will begin as a redistribution center to service warehouses and will later expand to include a parts distribution center. The redistribution Master Depot will support the US, Canada and Mexico. The parts distribution operation will improve service parts delivery times to over 100 dealers in the surrounding regions.

“This new facility is exemplary of the commitment that Volkswagen Group of America has to meeting the needs of our dealers and our growing customer base,”said Rawdon Glover Executive Vice President of Aftersales, Volkswagen Group of America. “Our continued investment in the U.S. market affirms that Volkswagen is dedicated to the economic vitalization of the communities where we do business.”

“I’m grateful Volkswagen is expanding its presence here in the state and bringing new jobs to Roane County,”said Tennessee Governor Bill Haslam, “because projects such as this bring more direct and indirect investments to Tennessee.”

Roane County Executive Ron Woody said of the project announcement,

“I couldn’t be more pleased that Volkswagen has chosen Roane County to be the site of their new Southeastern distribution facility. We appreciate VW’s confidence in us and our workforce – and certainly appreciate their investment in our community. We look forward to a long and fruitful partnership with them for many years to come.”

Volkswagen first announced its plans in 2008 to produce a new midsize sedan specifically for the North American consumer at its $1 billion plant in Chattanooga, Tenn. Completed in 2011; the plant produces the all-new Passat, and is one of the most advanced and environmentally responsible auto assembly plants in the world.

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