• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » How Volkswagen Returned to the U.S. After Two Decades
Case Study

How Volkswagen Returned to the U.S. After Two Decades

Volkswagen
Source: Bloomberg
August 1, 2020
SupplyChainBrain

For the first time in more than 20 years, Volkswagen sought to re-enter the United States with a new manufacturing plant.

The automaker was looking to establish a stronger U.S. presence with the addition of the new facility, which would incorporate state-of-the-art technology and processes.

VW laid out six areas of focus for the project:

  • Site selection,
  • Supply chain and logistics,
  • Labor analytics,
  • Real estate advisory,
  • Business and economic incentives, and
  • Project and development services.

The automaker required an experienced business partner for the critically important project. Criteria for selection included the need for full-time support and expertise in evaluating the most efficient and effective location for the new U.S. plant. For a project representing an investment of more than $1 billion, the company required a sophisticated suite of tools, technology, data and consulting expertise. VW says it was looking for a partner that had the technological savvy to analyze logistics requirements and develop a strategy to reduce transportation costs, optimize product flow, ensure needed labor, meet tax requirements and take advantage of incentives.

The plan anticipated creation of more than 2,000 new jobs at various levels of the facility, including production floor, research and development, and executive space. Finding a location that was ideal for VW’s supply chain, positioned properly for labor, and able to yield cost reductions where applicable, was a large endeavor. Business and economic incentive services were required to identify where there might be an impact in the form of cost savings, and other training and tax-related benefits.

In addition, the project called for a high degree of confidentiality and professionalism. As the world’s largest automobile manufacturer, VW needed a partner with the ability to accommodate any need, while providing best-in-class support and solutions. In all, VW says it had an extensive list of needs that required both consulting expertise as well and “boots on the ground,” to complete its successful re-entrance into the U.S. market.

Within just 24 months, JLL, a commercial real estate services company, helped to secure two VW facilities in the U.S.: a new $100-million North American headquarters, and a $1 billion assembly plant located in Chattanooga, Tennessee.

Volkswagen says it saved more than 30% in real estate occupancy costs, with related savings and benefits totaling over $1 billion.

“JLL enabled us to get closer to key markets and to connect, even more closely, with our customers,” says President and CEO Stefan Jacoby. “At Volkswagen, that’s considered world-class engineering.

“From day one,” Jacoby adds, “JLL had a very strategic approach, and took the time to understand our business and culture — translating our operational needs into the right overall solutions for us.”

    RELATED CONTENT

    RELATED VIDEOS

    Logistics Facility Location Planning Automotive
    KEYWORDS Automotive Facility Location Planning North America
    • Related Articles

      U.S. Warehouse Supply at Its Tightest in Two Decades

      House Passes First U.S. Ocean Shipping-Law Revamp in Two Decades

      What Does Walmart Do With All the Merchandise Returned After the Holiday Buying Season?

    SupplyChainBrain

    Amazon Expands Drone Delivery Services into Arizona

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Popular Stories

    • A PARTIALLY OPEN AIRCRAFT MANUFACTURING HANGAR SPORTS HUGE IMAGES OF PLANES ON ITS SLIDING DOORS

      Boeing Dismantles DEI Team as Pressure Builds on New CEO

      Air Cargo
    • A CLOSE-UP OF VARIOUS PILLS ON A MAGENTA TABLE.

      U.S. More Susceptible to Drug Shortages Than Canada

      Global Supply Chain Management
    • A large blue container ship docked at a port, below three white shipping cranes, while a grey barge moves through the waterway in the foreground

      Montréal Employers Threaten to Suspend Striking Port Workers’ Salary Guarantee

      Global Gateways
    • A WOMAN OF COLOR IN BLUE OVERALLS HOLDS A WELDING TORCH IN A FACTORY SETTING

      A Call for Reinvigorating the U.S. as the World’s ‘Manufacturing Superpower’

      Regulation & Compliance
    • An above view of crates of red apples stacked on top of each other, next to a man in a plaid shirt and a white hard hat looking at a tablet.

      The Fight Against Food Fraud in Our 'Biggest, Weirdest Supply Chains'

      Global Supply Chain Management

    Digital Edition

    Cover nov 24 scb q4 2024

    Supply Chain Innovation 2024: A Formula for Thriving in the Age of Disruption

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    AutoStore Beumer Group Brightdrop
    CHEP Cleo Coenterprise
    Comarch Commport Cycle Labs
    Dassault Descartes Enveyo
    Eva Air Exiger ForwardX Robotics
    Frayt Generix Georgetown University
    GEP Holman Logistics iGPS
    Integrity Staffing JLL Kinaxis
    Korber LoadSmart Lucas Systems
    Manhattan Associates Netstock OWD
    Old Dominion Ortec PartnerLinQ (Visionet)
    Plante Moran Quickbase RapidRatings
    Rockwell Automation SAP S&P Global Mobility
    TADA Tecsys Zebra Technologies
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Your Subscription
      • Newsletters
    • Resources
      • Events Calendar
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2024 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing