Volkswagen Werk Chattanooga (USA)Volkswagen Group of America is planning to open a new Pacific Northwest Parts Distribution Centre in Sacramento, California.

The OEM is investing $6.8m in expanding its logistics operations with a 13,000+ sq.m facility. It is Volkswagen’s second parts distribution warehouse in California. It has a 28,800 sq.m parts and distribution facility in Los Angeles.

The facility will be used for distributing automotive service parts for around 84 Audi and Volkswagen dealers in six states throughout the Pacific northwest and northern California. A spokesperson for Volkswagen told Automotive Logistics that the carrier the OEM will be working with has not yet been determined/announced, but that Volkswagen Group of America will be running the facility. "We are seeing growth in part sales nationally, the west coast is on par and slightly ahead of national growth," the spokesperson said. 

Volkswagen said the new centre will allow it to service the needs of customers better, in less time and improve stock orders from second-day to overnight delivery. The spokesperson said the move from second-day to overnight deliveries will benefit both dealers and customers. 

The new warehouse will hold around 47,000 part numbers, and is expected to open in the second quarter of 2016, with around 28 employees.

Jan Bures, executive vice president group after sales and services, Volkswagen Group of America said, “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. We remain focused on growing in the US market through these strategic investments.”

Volkswagen has committed more than $7 billion to the North American market between 2015 and 2019.