Volkswagen (VLKAY) Investing $11.3 Million In California

Volkswagen (DE:VOWG_p) AG (OTC:VLKAY) announced investments worth $11.3 million in California. Of the total investment, it will spend $4.5 million for a new training center in Eastvale, which is a small city near Riverside. The center will be opened early next year. It will provide technology, collision repair and sales training for Volkswagen’s three brands including VW, Porsche and Audi. For the first time, personnel from all the brands of Volkswagen will be receiving training at the same location.

The remaining $6.8 million was utilized for a distribution center in Rocklin, northeast of Sacramento. The facility spreads across 140,000 square feet. It is the 7th Volkswagen center in the U.S. It will serve 94 VW and Audi dealers in Northern California and the Pacific Northwest. It is expected that around 30 people will be working at the Rocklin facility. This center has been officially opened.

The automaker is making investments in an attempt to recover from the software emissions scandal. Last year, Volkswagen found itself in troubled waters after the Environmental Protection Agency revealed that the company had developed a software algorithm to deceive U.S. emission tests.

Following the scandal, the automaker has been trying to rebuild its reputation through small and larger changes. It plans to invest around $7 billion in North America through 2019. This $11.3 million investment is part of the company’s $7 billion investment plan.

The stock currently carries a Zacks Rank #3 (Hold).

Stocks that Warrant a Look

Some better-ranked automobile stocks include Lear Corp. (NYSE:LEA) , Oshkosh Corporation (NYSE:OSK) and Superior Industries International, Inc. (NYSE:SUP) . All these stocks sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>