Volkswagen is building a new parts distribution warehouse in Dordon, Warwickshire, to improve parts supply for dealers and bodyshops.
The 650,000 sq. ft. centre, which will replace VW's existing warehouse in Milton Keynes, is due to open in January.
A spokeswoman said: “We simply outgrew our Milton Keynes site – the new centre will hold more parts and improve supply for dealers' parts departments.”
TNT Logistics will own and manage the parts warehouse. It plans to implement a Psion Teklogix system to improve control over inventory, warehousing and distribution operations.
VW Group parts logistics manager Andy Williams said: “The scale of our new UK warehouse and distribution operation makes it vital to maintain absolute control over all transactions.
“The Psion Teklogix system will help to improve the service to our retailer network and customers by improving picking accuracy, allowing us to prioritise the tasks that need to be completed.”