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.



Saudi Arabia Surges to 14th Position in Global AI Index, 1st in Arab World

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia Surges to 14th Position in Global AI Index, 1st in Arab World

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)

Saudi Arabia has achieved a significant milestone in the field of artificial intelligence, securing 14th place globally and the top spot in the Arab world in the Global AI Index for 2024, published by Tortoise Intelligence.

The remarkable 17-rank improvement among 83 countries underscores Saudi Arabia's rapid progress in AI adoption and development.

The Kingdom's continued leadership in the Government Strategy sub-pillar solidifies its position as a global AI leader.

Its seventh-place ranking in the Commercial Ecosystem sub-pillar further demonstrates its commitment to investing in AI technologies and fostering a thriving AI ecosystem.

The Global AI Index, a comprehensive assessment of AI capabilities across 83 countries, evaluates performance based on 122 indicators grouped into three pillars: Implementation, Innovation, and Investment. The pillars are further divided into seven sub-pillars: Talent, Infrastructure, Operating Environment, Research, Development, Government Strategy, and Commercial Ecosystem.

The achievement highlights the unwavering support provided by Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister, and Chairman of the Board of Directors of the Saudi Data and Artificial Intelligence Authority (SDAIA).

Under his guidance, SDAIA has been instrumental in advancing the field of data and AI, developing national capabilities, and fostering innovation. This strategic approach positions Saudi Arabia as a leading data-driven and AI-powered economy.