Volkswagen has signed two new logistics contracts for inbound supply to its plants in Chattanooga, Tennessee and Bratislava in Slovakia.
In the US, Hollingsworth Logistics has entered a joint venture with Magna International subsidiary Magna Seating to supply complete seat systems for the mid-sized sedan that Volkswagen Group of America has planned for assembly at its new $1 billion plant in Chattanooga.
Called Chattanooga Seating Systems, the venture will be 51% owned by Hollingsworth Logistics, which is a minority-owned Native American company, and 49% by Magna Seating.
“This partnership is a great sign of things to come for everyone involved,” said Frank Fischer, president and CEO for Volkswagen in Chattanooga. “We are pleased that a minority-owned joint venture will be a part of our supplier team for the all-new mid-size sedan and that the addition of 120 jobs will continue to strengthen the economy here in the Tennessee Valley.”
Steven Barr, Owner and CEO of Hollingsworth Logistics Group, added: “We are very proud of our long-standing relationship with Magna and we look forward to adding Chattanooga Seating Systems to our two existing joint ventures. We have been partners with Magna for the past ten years and look forward to working together to provide Volkswagen with outstanding service and a best-in-class product.”
VW is developing an onsite supplier park on a 16-hectare site adjacent to the main assembly plant for just in time delivery and the company expects to have at least six tier one suppliers located there for the direct supply of parts and assemblies to the plant.
Last week it signed a contract with Wallenius Wilhelmsen Logistics for outbound vehicle movements from the plant (read more here).
Meanwhile, in Slovakia, VW has extended its relationship with DHL Supply Chain with a new five-year contract for inbound to the assembly plant near Bratislava.
As of the beginning of April DHL Supply Chain is providing inbound logistics for 50% of the production materials for the production of the Porsche Cayenne, Audi Q7 and VW Toureg.
The LSP is employing 800 staff to handle inbound receiving, storage, picking and kitting, as well as sequencing and lineside delivery. The parts handled include engines, gearboxes and windscreens.