Trust Volkswagen in Redditch, Worcestershire, is a new £3m site complete with seven-car showroom and 11-bay workshop plus a Motorzone used car supermarket.
Vardy expects to sell 450 new Volkswagens and 300 approved used vehicles with a further 1,500 units sold by the Motorzone site.
The site employs more than 30 people but is also looking to increase its head count 40. Reg Vardy was awarded the franchise in the region last year and now has four dealerships branded Trust Volkswagen in Stourbridge, Stafford, Wolverhampton and Redditch.
Paul Raby, regional director, says the opening of the site not only completes a market centre for the group but also gives coverage in an new area.
Vardy inherited the Trust name after acquiring the Trust Motor Group in 1990. It revived the name after buying Stourbridge Volkswagen in February last year.