VW encounters protests over climate and China at annual meeting

VW faced criticism about its presence in China’s western region of Xinjiang, where the government is alleged to have pushed Muslim Uyghurs and other minorities into jobs programmes as part of an effort to force them to assimilate

While weathering criticism over its China presence, VW is dealing with the pressing task of stemming a slide in market share in its biggest market.

Volkswagen contended with a combative atmosphere at the carmaker’s annual general meeting in Berlin as climate protesters blocked access to the venue and shouting activists interrupted speeches from management.

Around a dozen people staged a protest that blocked traffic, arguing the carmaker was “making climate-damaging decisions” ahead of the start of the meeting. Once underway at Berlin’s City Cube venue, the event saw protesters shout accusations of forced labour in China during speeches from chief executive Oliver Blume and chairman Hans Dieter Poetsch. 

One protester also threw cake in the direction of Wolfgang Porsche, 80, chairman of the Porsche and Piech family holding company Porsche, which controls a majority of the voting shares in Volkswagen.

The company is “open to critical dialogue and regularly invites stakeholder groups and environmental protection organisations” to discuss controversial perspectives, according to a statement.

VW also faced criticism about its presence in China’s western region of Xinjiang, where the government is alleged to have pushed Muslim Uyghurs and other minorities into jobs programmes as part of an effort to force them to assimilate. 

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Gheyyur Qurban, spokesperson for the World Uyghur Congress, told shareholders that there were 20 internment camps in the immediate vicinity of the plant VW’s joint venture operates in Urumqi, and questioned VW’s ability to ensure that its workers could speak freely in a region that was under high surveillance from Chinese authorities.

Ralf Brandstaetter, the head of VW’s China operations, recounted details from his recent visit to its subsidiary plant in Urumqi, speaking of a “good working environment” that “respects religious persuasions and diverse cultures”.

Investors at Deka Investment and Union Investment called on VW to conduct an independent external audit of its Saic joint venture subsidiary in the region to show that the German carmaker and its contractors have nothing to hide. Mr Brandstaetter said the carmaker could not independently arrange an external audit, as any decision on activities in Xinjiang needs to be made in co-operation with its joint venture partner.

“As long as there is no complete proof, the threat to reputation and risk of lawsuits will remain,” said Ingo Speich, head of sustainability and corporate governance at Deka.

While weathering criticism over its China presence, VW is dealing with the pressing task of stemming a slide in market share in its biggest market. VW lost its sales lead in China during the first quarter and this week swapped out the leadership of its software unit after severe delays. 

Bloomberg