Volkswagen Group of America, Inc. Friday announced plans to invest $6.8 million to expand its logistics operations by opening a new Pacific Northwest Parts Distribution Center in Sacramento, Calif. The 143,000 square-foot facility, marks Volkswagen’s second parts distribution warehouse in California, and will be used for distributing automotive service parts for approximately 84 Audi and Volkswagen dealers in six states throughout the Pacific Northwest and Northern California.
“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,” said Jan Bures, executive vice president Group After Sales and Services, Volkswagen Group of America, Inc. “We remain focused on growing in the U.S. market through these strategic investments.”
The new Sacramento facility will enable VWGoA to better service customer needs, in less time, improving stock orders from second-day to overnight delivery, said officials. The new warehouse will hold roughly 47,000 part numbers, and is slated to open the second quarter of 2016, with a projected employee roster of 28.
The investment is part of Volkswagen Group’s more than $7 billion commitment in the North American market between 2015 and 2019. VWGoA currently has a 310,000 square-foot parts and distribution facility in Los Angeles.