WASHINGTON -- Volkswagen Group of America will spend $6.8 million to open a new parts distribution center in Sacramento, Calif., to serve dealers in the Pacific northwest and northern California, the company said today.
The 143,000-square-foot warehouse will stock 43,000 component types and employ a projected 28 workers to service 84 Volkswagen and Audi dealerships in six states. The facility is scheduled to open in the second quarter of next year, the company said.
The investment is part VW’s plans to invest $7 billion in North America through 2019 to bolster its operations. The company is also expanding its assembly plant in Chattanooga to assemble its new midsize SUV that goes on sale next year, and it is hiring 200 engineers to staff a new product development center there to better cater its products to the U.S. market.
“This new facility is a testament to Volkswagen Group of America’s commitment to servicing its dealer network and customer base on the West Coast as efficiently as possible,” Jan Bures, executive vice president of group after sales and services at Volkswagen Group of America, said in a statement. “We remain focused on growing in the U.S. market through these strategic investments.”
VW said in a statement that the new operation, its second parts distribution warehouse in California, will reduce parts delivery time. The dealers to be served by the Sacramento warehouse were previously serviced by operations in Ontario, Calif., Fort Worth, Texas, and Pleasant Prairie, Wis., a VW spokeswoman said