Volkswagen AG has opened a $40-million logistics center in Roane County, Tennessee aimed at cutting delivery times of parts for the Passat mid-sized sedan. VW said in a statement that the site will start as a redistribution center for serving warehouses and will later expand to include spare-parts supply for over 110 vehicle retailers in the southeast United States.
Anu Goel, vice president of parts and vehicle logistics at Volkswagen Group of America, remarked that the new logistics center is a "tangible proof of the clear commitment" that Volkswagen Group of America has to meeting the needs of dealers and its growing customer base.
The center currently has a workforce of 5 employees, which will be later increase to around 30 workers in 2014, according to a VW spokesman. He added that the 459,000-square-foot complex will supply parts to 13 countries outside the US where the Passat is marketed, including Canada, Mexico and South Korea.
VW's growth in North America is crucial to the strategy of chief executive Martin Winterkorn to surpass Toyota Motor Corp. and General Motors as the biggest carmaker in the world by 2018. Volkswagen commenced making the US variant of the Passat in 2011 at its Chattanooga site in Tennessee. VW is intending to pour in over $5 billion in North America in new models, technology and infrastructure through 2015.
“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,” said Anu Goel, Vice President of Parts and Vehicle Logistics, Volkswagen Group of America. “Our continued investment in the U.S. market affirms that Volkswagen Group of America is dedicated to the communities in which we do business.”