FRANKFURT: Volkswagen on Wednesday reported a leap in second quarter profit thanks to strong sales, but the German car giant warned that strict new emissions tests and global trade tensions posed “great challenges” in the months ahead.
The Wolfsburg-based group said net profit jumped 6.8 percent year-on-year to 3.3 billion euros ($3.8 billion) between April and June, beating analyst expectations.
The positive result comes even after VW had to shell out another 1.6 billion euros “in connection with the diesel crisis,” as the fallout from its 2015 emissions cheating scandal rumbles on.
Revenues were up 3.4 percent to 61 billion euros after the VW group — whose 12 brands include luxury Porsche and Audi as well as the more affordable Skoda — delivered a record 2.8 million vehicles in the second quarter.
Despite the good news, VW’s new chief executive Herbert Diess sounded a note of caution.
“We cannot rest on our laurels because great challenges lie ahead of us in the coming quarters — especially regarding the transition to the new WLTP test procedure,” Diess said in a statement.
“Growing protectionism also poses major challenges for the globally integrated automotive industry.”
Volkswagen is set to close its iconic Wolfsburg plant for several days in the third quarter as the group scrambles to adapt to tough new EU emissions test from September 1, known as WLTP.
The tests are meant to better mimic real-world driving conditions than lab tests, to prevent the kind of rigging exposed in VW’s “dieselgate” controversy.
Like other German automakers, Volkswagen is also nervously eyeing US-EU trade tensions, particularly President Donald Trump’s threat to slap duties of up to 25 percent on car imports.
Despite the clouds on the horizon, the VW group confirmed its full-year outlook, expecting revenues “up to five percent higher” compared with the previous year.
It is targeting an operating profit margin before special items of between 6.5 and 7.5 percent, compared with 7.4 percent last year.
Shares in VW fell 1.4 percent to 150.10 euros in early afternoon trading in Frankfurt, against a blue-chip Dax index narrowly in the red.
Volkswagen was plunged into its biggest-ever crisis in 2015 after it admitted to installing “defeat devices” in 11 million diesel cars worldwide designed to cheat pollution tests.
The scandal has cost it over €27 billion so far in compensation, buy-backs and fines and the company remains entangled in legal woes at home and abroad.
CEO Diess took the helm in April, vowing to steer the company out of the diesel cloud and accelerate a shift toward electric and self-driving vehicles.
But in a fresh blow in June, German prosecutors arrested Audi boss Rupert Stadler as part of their probe into the diesel scam.
“We hope that the prosecutor’s office can quickly clarify the matter,” Diess told reporters in a conference call.
Last month, the European Commission said VW had repaired about 80 percent of the 8.5 million cars in Europe found to have been equipped with defeat devices.
But it also urged VW to do more to satisfy customers in Europe, who unlike their American peers have not been given any compensation over the cheating.
Volkswagen profit jumps, but ‘great challenges’ ahead
Volkswagen profit jumps, but ‘great challenges’ ahead
- Despite the good news, Volkswagen’s new chief executive Herbert Diess sounded a note of caution
- Like other German automakers, Volkswagen is also nervously eyeing US-EU trade tensions
Saudi youth turn to AI for art and culture
- Creativity, heritage and technology converge in a new generation of artists
RIYADH: As Saudi Arabia’s Vision 2030 places creativity, culture and technological innovation at the core of national development, the impact of these priorities is becoming increasingly visible across a wide range of disciplines and practices.
Through the use of artificial intelligence, young Saudis are integrating technology into their creative work both as a practical tool and as a medium in its own right. In doing so, they are expanding their capabilities, exploring personal and collective identity, and finding new ways to preserve and reinterpret cultural heritage.
“AI gives young Saudis a new way to interact with their own cultural inheritance,” said Dmitry Zaytsev, founder of Dandelion Civilization, a platform designed to help individuals shape unique professional paths.
“Traditional design elements such as calligraphy or geometric motifs were once difficult to modify. Experimentation required resources and formal approval. AI removes that barrier and makes exploration immediate. A creator can test many versions of a pattern and see which ones still feel authentic to them,” he told Arab News.
According to Zaytsev, this emerging form of expression does not signal a rejection of tradition, but rather a deeper engagement with it. “The young creator discovers what can change and what must remain constant. AI becomes a sketchbook that allows culture to evolve through curiosity rather than fear. When creators correct a model or push it toward local rhythm, they strengthen rather than dilute cultural identity,” he explained.
Sarah AlBaiz, an art adviser, researcher and artist, uses code to blend visual art with concepts drawn from culture and philosophy. While her early practice focused primarily on painting, her trajectory shifted during the 2020 AI Artathon, a pioneering international event highlighting collaboration between humans and machines in artmaking, where she discovered how to merge her engineering background with her creative work.
DID YOU KNOW?
• Saudi youth are using AI as a creative tool to reinterpret heritage, from calligraphy to folklore.
• AI is helping artists experiment faster without the traditional barriers of resources or formal approval.
• The Kingdom is backing creative AI nationally, with programs like SAMAI aiming to empower 1 million Saudis for an AI-driven future.
Operating within the field of computational creativity, where technology actively participates in the artistic process, AlBaiz explores themes of finance and faith. “Because they’re two sides of who I am,” she said. “When you talk about values, for example, that is both a term used in finance and trade from an objective perspective, but also moral and spiritual value.”
“When you understand prompting in AI, you can get it to produce almost anything. But it’s also informed by the training data it has,” she said.
Rather than relying on a single platform, AlBaiz experiments with multiple AI models to test their limitations and audience reception. “I work a lot with language as well, so large language models are right up my street when it comes to computational creativity.”ee
Her work has gained international recognition. At the 2022 Islamic Arts Biennale in Jeddah, she co-created an artwork under the banner of Super Artistic AI that generated Al-Qatt Al-Asiri motifs from southern Saudi Arabia. The piece received an Audience Award.
Beyond her artistic practice, AlBaiz is developing an intelligent art advisory system aimed at helping users navigate the Saudi art landscape. Designed as an initial point of contact, the system would guide users through potential pathways before they engage with a human adviser.
“It’s about understanding what role AI plays in the pursuit of what you want,” she said. “When I decided to focus on Qantara and building the advisory, I recognized that many of the systems required would need to be intelligent systems that offload a lot of work from me and the team.”
“When AI is an enabler rather than the end result, it becomes less intimidating because it feels risk-free for the end user,” she added.
Zaytsev echoed this idea, describing AI as a kind of rehearsal space. “Young people practice conversations, explore sensitive topics and organize their thoughts without social risk. This builds emotional clarity and confidence,” he said.
While generative tools such as large language models attract much of the attention, AI’s creative applications extend far beyond text and image generation.
Fairooz Alawami, trained as both an architect and engineer, uses AI to create self-expressive visual works inspired by dance.
“My practice is focused on contextualizing movement,” she said. “Because of my architectural training, I work with 3D modeling software called Rhino, which includes a visual coding language. Within that environment, you can also write code in Python, JavaScript or C#.”
Alawami employs OpenPose to analyze videos of her dancing by mapping points across her body. She then applies another computer vision model, MIDAS, which converts images or videos into depth frames. “If OpenPose gives me a skeleton, MIDAS gives me depth,” she explained. The resulting data is fed into 3D modeling software, where it is refined and manipulated into finished artworks.
She began dancing at a young age. “I didn’t find it, it found me,” she said. Movement later became the foundation of her artistic practice, leading to her first major project around three years ago while completing her master’s degree using the Grasshopper plugin. At the time, the workflow was slow and fragmented, but the arrival of ChatGPT helped streamline the process by making it easier to write and learn code.
“I think my love for dance and my love for art and design came together in a way that felt uniquely me,” she said. “Once I found that space, I just ran with it. It is my singular voice.”
Her work also draws heavily on cultural and musical heritage. One recent project was inspired by folklore referenced in the iconic song “Al Leila wa Leila” by Umm Kulthum. Alawami extracted musical stems from the track and mapped them to characters within the narrative. “The vocals were Shahrazad, the storyteller, and each stem represented a different narrative element,” she said. Earlier works were influenced by Islamic architecture and the geometric patterns found throughout Saudi Arabia and the wider Arab world.
“There are some incredible artists using generative AI to do very impressive things, and I don’t think I fall into that camp,” she said. “For me, AI is more like a skills-gap tool that helps me reach where I want to go.
“As humans, whether we realize it or not, the act of creating feeds us in some way. Lowering the barrier to entry makes creativity less intimidating.”
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Today, Saudi Arabia’s creative sector is supported by expanding national infrastructure. Initiatives such as the Cultural Scholarship Program place Saudi students in more than 60 universities worldwide, spanning disciplines from archaeology and literature to design, filmmaking and culinary arts. In parallel, the Kingdom launched the SAMAI initiative last year, aiming to equip 1 million Saudis with the skills needed to engage confidently in an AI-driven world.
Within Vision 2030, culture, tourism, digitalization and AI are treated as strategic sectors rather than peripheral concerns. As Saudi Arabia develops its creative economy as a form of soft power, its youth are becoming increasingly digitally fluent. AI tools are now embedded within creative workflows, enabling a new generation to explore heritage, remix traditional aesthetics and develop narratives that resonate on a global stage.










