Volkswagen plans to build a Passat parts warehouse outside Knoxville, an official said Wednesday.
The Roane County, Tenn., warehouse will hold replacement parts for the Chattanooga-made Passat for delivery to dealers in the Southeast United States, said Carsten Krebs, VW of America's director of corporate communications.
Krebs wouldn't reveal the size or cost of the warehouse or how many workers it will employ.
The warehouse is expected to be in the Roane Regional Business & Technology Park off Interstate 40 near Interstate 75.
The automaker is to break ground on the facility on March 13, Krebs said.
Roane County Mayor Ron Woody said that while the area weathered the recession well, it has continued to recruit new business.
The county has TVA's Kingston Fossil Plant, while TVA's Watts Bar nuclear plant is located nearby, said Woody, who declined to talk about the VW project.
Krebs said the parts warehouse will fulfill a commitment to the state of Tennessee to expand its footprint outside of its Chattanooga auto assembly plant.