VW Invests $125M to Expand in the US

Volkswagen moves on with its plans of further expand its business in the United States and announced that its American unit is currently investing to open several Audi and Volkswagen dealerships in New York City. For starters, the Group invested $125 million for the 265,000 square-foot building formerly housing Potamkin General Motors.

According to the carmaker, the newly purchased building is located in a convenient place for the Volkswagen and Audi customers, as it is sited in the highest traffic area of 11th Avenue.

"As Volkswagen and Audi move forward on our aggressive plan to increase sales in the U.S., there is no better place to demonstrate our commitment than in Manhattan -- a town synonymous for bold actions and big thinking," Stefan Jacoby, president and CEO, Volkswagen Group of America.

The dealerships will be part of the Open Road Auto Group and will showcase Volkswagen and Audi's new showroom concepts, known respectively as "white frame" and "terminal."

Full renovations for the Volkswagen dealership are expected to be complete in the spring and sales are expected to begin in early 2010. The addition of Audi will take place at the end of 2011.

"New York has always been a leading market for the Volkswagen and Audi brands, and these new store fronts will serve to strengthen our business even more. We are proud to be investing in the New York economy, excited to showcase our brands and look forward to seeing more Volkswagens and Audis on the streets of New York," added Jacoby in a statement for the press.