Volkswagen Chattanooga announced Wednesday that it has begun construction activities on an extension of the assembly shop parts warehouse at its Tennessee factory.

The warehouse extension, scheduled to be operational by August 2014, will add 198,400 square feet to the existing 104,600 square feet. The total warehouse space in the plant will now be 303,000 square feet.

By extending the current warehouse building in the assembly shop, Volkswagen will eliminate the need for two current external staging warehouses. This project solely affects production of the Passat.

The expansion represents an investment of $17.7 million dollars and will add 14 dock doors for parts delivery with the option to expand that by an additional 20 loading docks in the future.

The project's construction partner is Gray Construction.