Volkswagen Opens $40 Million U.S. Passat-Parts Warehouse

Volkswagen AG (VOW), Europe’s largest carmaker, opened a $40 million logistics center in Roane County, Tennessee, to reduce delivery times of components for the Passat mid-sized sedan’s U.S. version.

The 459,000-square-foot (41,300-square-meter) complex is starting as a redistribution center to serve warehouses and will later expand to include spare-parts supply for more than 110 vehicle retailers in the southeast U.S., the Wolfsburg, Germany-based carmaker said today in a statement.

“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.

Growth in North America is critical to Chief Executive Officer Martin Winterkorn’s strategy for VW to overtake Toyota Motor Corp. (7203) and General Motors Co. (GM) and become the world’s biggest carmaker by 2018. Volkswagen started making the Passat’s U.S. variant in 2011 in Chattanooga, Tennessee. The company plans to invest more than $5 billion in North America in new models, technology and infrastructure in the three years through 2015.

VW already operates five parts warehouses in the U.S.

To contact the reporter on this story: Christoph Rauwald in Frankfurt at crauwald@bloomberg.net

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net

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