) is planning a $40 million investment to set up a warehouse in
Roane County, Tenn. The new warehouse will supply domestic auto
parts for the Passat vehicle, which is manufactured in
Volkswagen's Chattanooga plant in Tenn.
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The warehouse spans across 400,000 square foot and is expected to
start operation from early spring 2013. Initially the new
facility will operate as a redistribution center for the service
warehouses. It will eventually expand to add parts distribution
center, which will support the U.S., Canadian and Mexican
The parts distribution center is expected to boost service parts
delivery times to more than 100 dealers. Moreover, the facility
will create 45 jobs by 2016.
Headquartered in Wolfsburg, Germany, Volkswagen is a prominent
player in the automotive industry along with
General Motor Company
). The company is engaged in developing vehicles and engines,
production and sale of passenger cars, commercial vehicles,
trucks, and buses.
Volkswagen posted a 37.6% fall in earnings to €4.18 ($5.50) per
share in the first quarter of 2013 from €6.70 in the same quarter
of 2012. Net earnings declined 35.2% to €2.0 billon ($2.7
billion) from €3.1 billion in the year-ago quarter.
The fall in earnings was attributable to lower revenues generated
from the company's Automotive segment owing to deteriorating
European markets. Revenues in the quarter dipped 1.6% to €46.6
billion ($61.5 billion).
Revenues from the Automotive segment fell 3.5% to €41.1 billion
($54.3 billion) while operating profits from the segment ebbed
31.7% to €1.9 billion ($2.5 billion) from €2.8 billion a year
ago. However, revenues from the company's Financial Services
segment grew 15.8% to €5.4 billion ($7.2 billion) while operating
profit grew 21.3% to €416 million ($549.1 million) from €343
million a year ago.
Volkswagen, a Zacks Rank #2 (Buy) stock, aims to become the
world's largest carmaker both in terms of sales and profitability
by 2018 based on the strength in emerging markets, including
Brazil, Russia, India and China.