featured News Trending

VW to invest up to $5bn in Tesla rival Rivian

By 256 0

Volkswagen (VW), the German automotive giant, has announced an investment of up to $5 billion (£3.94 billion) in Rivian, a competitor to Tesla. This partnership forms a joint venture allowing both VW and the US-based electric vehicle (EV) manufacturer to share technology. Following the announcement, Rivian’s stock surged nearly 50%.

The collaboration comes amid increasing competition among EV manufacturers and the imposition of tariffs on Chinese imports by Western nations. VW will start with an initial $1 billion investment in Rivian, with an additional $4 billion planned by 2026.

Founded in 2009, Rivian has yet to achieve a quarterly profit, reporting a net loss of over $1.4 billion in the first quarter of 2024. VW, facing pressure from competitors like Tesla and China’s BYD, is working to transition from fossil fuel-powered vehicles to EVs.

The partnership provides VW with immediate access to Rivian’s software, which it can integrate into its vehicles. The deal also comes as Chinese EV manufacturers expand globally, increasing competition. The European Union (EU) recently announced plans to raise tariffs on Chinese EV imports by up to 38%, following an investigation that found Chinese EV companies had been unfairly subsidized. China criticized these tariffs as violating international trade rules and labeled the investigation as protectionist.

The tariff increase by the EU follows the United States’ decision to raise import duties on Chinese EVs from 25% to 100%. Canada is also considering similar measures to align with its allies.

Separately, Tesla announced a recall of over 11,000 Cybertrucks sold in the US due to issues with windscreen wipers and exterior trim. The Cybertrucks were first released at the end of November last year.

Picture Courtesy: Google/images are subject to copyright

News Trending

Hungary opens up to Chinese tech despite protests

By 197 0

Hungary’s ambition in electric vehicle (EV) battery manufacturing has surged, with plans to become a significant player globally. Despite ranking third behind China and the US, Hungary aims to surpass the US soon, as articulated by Foreign Minister Peter Szijjarto during his visit to Beijing. This push aligns with Hungary’s broader strategy of strengthening economic ties with Eastern nations, particularly China and South Korea.

The influx of Chinese investment is evident, with numerous factories, including those of CATL and BYD, dotting the Hungarian landscape. However, this rapid industrial expansion has sparked environmental concerns and local opposition, particularly regarding water scarcity and potential health hazards. Critics worry that Hungary risks becoming overly reliant on foreign companies, potentially leading to stagnant domestic research and development.

The Hungarian government acknowledges these challenges, emphasizing the importance of not just attracting production but also integrating research efforts. Balazs Orban, from the Prime Minister’s Office, highlights the need to merge foreign investors’ research with Hungarian companies to ensure long-term economic sustainability. Despite the economic benefits of foreign investment, concerns persist regarding labor exploitation and Hungary’s evolving role in the global supply chain.

As Hungary’s industrial landscape transforms, balancing economic growth with environmental sustainability and domestic innovation remains a pressing concern. The government faces the delicate task of harnessing foreign investment while safeguarding Hungary’s long-term interests and preserving its environmental and social fabric.

Picture Courtesy: Google/images are subject to copyright

News Trending

Irish economy expected to grow in next two years

By 287 0

A prominent think tank, the Economic and Social Research Institute (ESRI), has projected solid growth for Ireland’s domestic economy in the next couple of years, driven by decreasing inflation and rising wages. They anticipate a 2.3% growth in modified domestic demand (MDD) for this year, followed by a 2.5% increase next year. MDD is a metric that filters out the influence of multinational corporations on Ireland’s economy. In 2023, MDD only saw a modest 0.5% growth due to factors like inflation and higher interest rates dampening spending and investment.

Despite a strong post-pandemic recovery, Ireland’s economic momentum slowed notably in 2023, partly due to increased inflation which hindered household finances. The ESRI noted a lack of real pay growth during 2022 and 2023. Real pay, adjusted for inflation, is a key indicator of changes in living standards. Both the ESRI and Ireland’s Central Bank anticipate an increase in real pay this year.

Traditionally, Gross Domestic Product (GDP) serves as the primary measure of economic performance; however, Ireland’s GDP is heavily skewed by multinational activities. Official data indicated a 3.2% contraction in Irish GDP in 2023. Usually, Irish GDP overestimates economic growth, but recent trends have shown the opposite, partly due to decreased sales and exports from US pharmaceutical companies’ Irish operations post-pandemic. The ESRI anticipates a recovery in Irish GDP over the next two years, driven by global trade improvements.

The ESRI also underscored the pressing need for Ireland to address well-documented infrastructure challenges, particularly in areas like housing, renewable energy, and public transport. Notably, plans for an underground rail link connecting Dublin Airport to the city center have reached the public planning hearings stage after more than two decades since the project’s inception.

Picture Courtesy: Google/images are subject to copyright

News Trending

Eiffel Tower in Paris set to reopen after six-day strike

By 225 0

The Eiffel Tower, one of the most iconic landmarks in the world, recently experienced a six-day closure due to strikes by workers protesting the management practices of its operator, Société d’Exploitation de la Tour Eiffel (SETE). These strikes disrupted plans for visitors and resulted in significant financial losses for the company.

The primary grievances of the striking workers revolved around SETE’s business model, which they alleged overestimated future visitor numbers while neglecting essential maintenance and renovation needs. Union representatives accused SETE of prioritizing short-term profitability over the long-term preservation of the monument.

Initially planned as a five-day strike, workers voted to extend it to six days after rejecting SETE’s initial proposal. This decision underscored the depth of dissatisfaction among employees regarding the company’s management practices and the condition of the Eiffel Tower.

However, after negotiations between SETE and the unions, an agreement was eventually reached. This agreement included provisions for regular monitoring of the company’s business model and significant investment in maintenance and renovation until 2031, totaling approximately €380 million. Additionally, there were discussions about potentially classifying the Eiffel Tower as a “historical monument” to enable state funding for necessary works, as suggested by French Culture Minister Rachida Dati.

This recent strike at the Eiffel Tower echoes a previous protest in December, coinciding with the centenary of Gustave Eiffel’s death. Gustave Eiffel, a renowned civil engineer, is best known for his design of the Eiffel Tower, which was intended to showcase France’s industrial prowess during the 1889 Paris Exposition.

Picture Courtesy: Google/images are subject to copyright

News Trending

Europe to develop commercial space capsule

By 274 0

The European Space Agency (ESA) is introducing a new competition to develop a robotic capsule for transporting cargo to and from the International Space Station, with the maiden voyage planned for 2028. This marks a significant departure from ESA’s conventional project management approach. The winning company will receive some financial support and technical assistance from ESA but must operate the capsule commercially. It will be responsible for partially funding the development and providing the re-supply service to ESA, which will act as the primary customer.

If successful, the company may be tasked with upgrading the capsule to transport ESA astronauts, and potentially, it could be adapted for missions to other destinations such as the Moon. A dedicated team within ESA has been allocated an initial budget of €75m to initiate the competition.

The concept was well received by ESA member states at a summit in Seville, Spain. This procurement model emulates the successful strategy employed by NASA, which transitioned to outsourcing space vehicle services to private companies, leading to the emergence of SpaceX. ESA hopes to replicate NASA’s access to faster, more innovative, and cost-effective space technologies.

Anna Christmann, a leading aerospace policy figure in the German government, emphasized the shift in ESA’s approach, stating that while public funding initiates such competitions, it attracts private investment. ESA member states have also committed to adopting this approach for long-term rocket procurement, as current European launchers are facing significant challenges.

The Seville summit also highlighted the role of satellites in aiding European nations’ net-zero goals, including using space data to optimize air travel routes and reduce greenhouse gas emissions. Additionally, ESA introduced the Zero Debris Charter to promote responsible practices in space operations. The UK is championing a new regulatory framework to incentivize responsible behavior and create a market for orbital debris removal services.

Picture Courtesy: Google/images are subject to copyright