Volkswagen Group of America (VWGoA) will spend US$6.8m expanding its logistics operations with a new Pacific Northwest Parts Distribution Centre in Sacramento, California.

The 143,000 sq ft facility will be VW’s second parts distribution warehouse in California and will distribute service parts to 84 dealers in six states throughout the Pacific Northwest and Northern California.

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The warehouse will lead to improved delivery times with more orders moving from second day to overnight delivery. The warehouse will hold about 47,000 Audi and VW part numbers, open in the second quarter of 2016 and employ 28.

The investment is part of the group’s $7bn commitment to North America between 2015 and 2019.

It currently has a 310,000 sq ft parts and distribution warehouse in Los Angeles.