A protester holds a banner that reads “VW = Forced Labor” during Volkswagen AG’s Annual General Meeting (AGM) at the CityCube Berlin conference center in Berlin, Germany, Wednesday, May 10, 2023.
Christian Bossi | Bloomberg | Getty Images
Volkswagen The automaker defended its record in China and its decision to co-own a factory in the Xinjiang region after activists and investors lashed out at the automaker at a tumultuous annual shareholder meeting on Wednesday.
About 10 activists, including a topless woman with the words “Dark Money” painted on her back, interrupted the executives, shouting that the automaker’s vehicles were made with forced labor and waving signs saying “End Uyghur forced labor” banner.
The United Nations said last year that China’s “arbitrary and discriminatory detention” of Uighurs and other Muslims in the Xinjiang region could constitute a crime against humanity. Human rights groups have documented abuses, including mass forced labor in internment camps that China denies.
Investors have called on Volkswagen to ask its joint venture partner SAIC to seek an independent external audit of the Xinjiang factory. “Volkswagen has to make sure its supply chain is clean,” said Ingo Speich, head of sustainability and corporate governance at Deka, one of Volkswagen’s top 20 shareholders.
“We saw no evidence of human rights abuses at any factory,” said Ralf Brandstaetter, head of China, adding that the automaker could not conduct audits without SAIC’s consent .
“I have no reason to doubt my impressions or the information I have been given,” Brandstaetter toured the plant earlier this year and said Wednesday.
Still, activists, including Haiyuer Kurban of the World Uyghur Congress, have highlighted reports of mass internment camps and links between Volkswagen suppliers and companies present there, as well as concerns given state control over the mass internment camps. Freedom of speech is restricted, making it difficult for locals to speak publicly.
Investors are also concerned that Volkswagen is falling behind in China’s increasingly competitive electric car market, BYD Earlier this year, it surpassed Volkswagen as the top passenger car brand.
Chief executive Oliver Blume acknowledged the rapid pace of electrification in China and outlined Volkswagen’s strategy to maintain its market leadership – tailoring products to Chinese tastes and building local partnerships.
CEO defends dual role
Some investors reiterated their long term criticism Oliver Blume doubles as Volkswagen and porscheand the low valuation of Volkswagen stock, which has been in free fall for the past two years, since Porsche goes public Last September.
Blume said he saw “high added value” in running both companies. The CEO also said the automaker has a clear plan to boost its capital market valuation, which it will unveil at its Capital Markets Day in June.
Meanwhile, activists from the “last generation” climate group glued themselves to the road leading to Wednesday’s Berlin shareholder meeting, protesting outside the entrance.
An activist with unknown affiliation threw a piece of cake at Porsche Automobile AG chairman Wolfgang Porsche, and as he spoke from the podium, debris flew in the direction of Volkswagen supervisory board chairman Hans Dieter Poch.
Security personnel quickly escorted all activists from the venue.
“Constructive dialogue is important. The shareholder meeting provides a good opportunity for this. With the exception of a few, everyone follows the specified guidelines,” a Volkswagen spokesman said.