Volkswagen of America plans to build its $40 million, 400,000-square-foot, warehouse and Southeastern Regional Distribution Center in Roane County, Tenn.

"This new facility is exemplary of the commitment that Volkswagen Group of America has to meeting the needs of our dealers and our growing customer base," said Rawdon Glover, Executive Vice President of Aftersales, Volkswagen Group of America. "Our continued investment in the U.S. market affirms that Volkswagen is dedicated to the economic vitalization of the communities where we do business. Being centrally located, Roane County is a great location and gives us the ability to quickly distribute parts, creating an even better experience for our growing customer base."

The facility is slated to start distributing domestic auto parts for the Chattanooga-made Passat as well as other Volkswagen and Audi vehicles by early 2013. The center could eventually be expanded up to 600,000 square feet. The parts distribution operation will serve more than 100 dealers in the surrounding regions as well as in the US, Canada and Mexico, he said. The facility will initially employ at least 45 people and is expected to have an annual payroll of more than $3 million.

"Special thanks need to go to the state's Economic and Community Development and Transportation departments, both of which are providing generous grants in excess of $1 million for infrastructure improvements necessary to make this project happen," Roane County Industrial Board Chairman David Webb said.

"I couldn't be more pleased that Volkswagen has chosen Roane County to be the site of their new Southeastern distribution facility," said Roane County Executive Ron Woody, "it announces to the region, the state, the nation and the world that Roane County is not only open for business, but it also confirms that Roane County, Tennessee has an unmatched location for national and worldwide distribution and that we are very competitive in recruiting businesses and industries worldwide. "

"This project will be a truly global operation and will create a local economic impact to Roane County in excess of $10,000,000 during the construction phase of the development. This is a great success story to have Volkswagen expanding their investment and employment in Tennessee," said Whitfield Hamilton, senior partner with Panattoni Construction, the developer building the Roane County facility for Volkswagen.