Volkswagen Warns of German Plant Closures, End to Job Security Scheme

VW logo badge is seen on display at the North American International Auto Show in Detroit, Michigan, US, January 16, 2018. REUTERS/Jonathan Ernst
VW logo badge is seen on display at the North American International Auto Show in Detroit, Michigan, US, January 16, 2018. REUTERS/Jonathan Ernst
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Volkswagen Warns of German Plant Closures, End to Job Security Scheme

VW logo badge is seen on display at the North American International Auto Show in Detroit, Michigan, US, January 16, 2018. REUTERS/Jonathan Ernst
VW logo badge is seen on display at the North American International Auto Show in Detroit, Michigan, US, January 16, 2018. REUTERS/Jonathan Ernst

Volkswagen said on Monday it can no longer rule out plant closures in Germany as it seeks ways to save several billion euros at its namesake brand in a cost-cutting drive.

The carmaker considers one large vehicle plant and one component factory in Germany to be obsolete, its works council said, vowing "fierce resistance" to the executive board's plans.

Volkswagen said that it also felt forced to end its job security programme, which has been in place since 1994 and which prevents job cuts until 2029, adding all measures would be discussed with the works council, according to Reuters.

"The situation is extremely tense and cannot be overcome by simple cost-cutting measures," VW brand chief Thomas Schaefer said in a written statement.

The Volkswagen brand, which fuels most of the automaker's unit sales, is the first of the group's brands to undergo a cost-cutting drive targeting 10 billion euros ($11.07 billion) in savings by 2026 as it attempts to streamline spending to survive the transition to electric cars.

A difficult economic environment, new competitors in Europe, and the falling competitiveness of the German economy meant the carmaker needed to do more, Volkswagen Group Chief Executive Oliver Blume said in a statement to its management.



Britain to Introduce Digital Driving Licences this Year

A gaggle of geese stop traffic on The Mall as they cross the road in front of Buckingham Palace, in London, Britain October 10, 2022. REUTERS/Hannah McKay/File Photo
A gaggle of geese stop traffic on The Mall as they cross the road in front of Buckingham Palace, in London, Britain October 10, 2022. REUTERS/Hannah McKay/File Photo
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Britain to Introduce Digital Driving Licences this Year

A gaggle of geese stop traffic on The Mall as they cross the road in front of Buckingham Palace, in London, Britain October 10, 2022. REUTERS/Hannah McKay/File Photo
A gaggle of geese stop traffic on The Mall as they cross the road in front of Buckingham Palace, in London, Britain October 10, 2022. REUTERS/Hannah McKay/File Photo

Britain will introduce digital driving licences later this year in a push to use data to transform public services, the government said on Tuesday.

The licence will be held in a new GOV.UK digital wallet on smartphones and it will enable users to easily prove their age when buying age-restricted items as well as proving a right to drive.

Security features built into smartphones like facial recognition will ensure digital documents are secure even if a device is lost, the government said.

Other credentials issued by the government such as veteran cards and criminal record checks will be added by the end of 2027, it said, while physical documents would also remain available, according to Reuters.

The wallet will come alongside a government app, due this summer, that will make using services like applying for childcare or reporting a lost passport easier.

Science Secretary Peter Kyle said the GOV.UK wallet would mean that every letter or identity document received from the government could be issued virtually.

"For people who choose to use GOV.UK Wallet, they will find it easier to prove they're entitled to benefits or check their age when buying alcohol or DIY equipment, with more security and trust than ever before," he said.

"Crucially, it also opens huge opportunities to make interacting with public services much easier by putting people in control of their own data."

A government review published on Tuesday said the full digitisation of public services could result in more than 45 billion pounds ($55 billion) a year of savings and productivity benefits.

Digital driving licences already exist in Australia, Denmark, Iceland and in some US states.