Volkswagen's annual meeting hit by protests over climate strategy, China

By Monica Raymunt
 

Volkswagen AG shareholders gathering in Berlin contended with climate protesters blocking access to the venue after gluing themselves to road surfaces as well as disruption once inside. 
 

Around a dozen German climate activists staged the protest that blocked traffic, arguing the carmaker was “making climate-damaging decisions.” Once inside, protesters carrying signs accusing the company of forced labor in China interrupted speeches by Chief Executive Officer Oliver Blume and Chairman Hans Dieter Poetsch.

VW has 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 programs as part of an effort to force them to assimilate. Investors at Deka Investment and Union Investment called on VW to conduct an independent external audit of its SAIC JV subsidiary in the region to show that the German carmaker and its contractors have nothing to hide.

 

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

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. 

Blume, at the helm of VW since September while retaining the top job at Porsche AG, has endured a number of highs and lows since taking over from Herbert Diess, with Porsche’s blockbuster initial public offering unable to paper over the company’s sales slide in China and protracted software issues. On Wednesday, Blume said the carmaker will broaden its approach to partnerships and use external expertise to tackle these challenges. 

Last year, the company started working with Horizon Robotics Inc. in China as part of a €2.3 billion ($2.5 billion) deal to set up a joint venture and get ahead on autonomous-driving technology. On Tuesday, Porsche said it will collaborate with Mobileye Global Inc. also on driver-assistance technology. The deal may later involve other VW brands like Audi, according to RBC Capital Markets. 

During his speech, Blume said his dual role at VW and Porsche — by now Europe’s biggest carmaker by value — “works well and is paying off” even as investors continue to point to a conflict of interest. 

Deka’s Speich praised Blume for addressing what he called the three most pressing issues at VW - China, Cariad and culture - but said the CEO was “still in the midst of cleaning up the mess” and that it was “too early to make a final assessment.”  

“The day has only 24 hours, even for you,” Speich said. “Your predecessor was already unable to master the enormous challenges with one group.”