BERLIN — Activists lashed out at Volkswagen Group at the automaker’s shareholder meeting on Wednesday over the company’s controversial plant in Xinjiang, reflecting similar investor concerns over claims of human rights abuses in the region.
CEO Oliver Blume acknowledged the fast pace of China’s electrification and outlined VW Group’s strategy to hold on to its position as market leader – tailoring products to Chinese tastes and building local partnerships.
He did not mention the Xinjiang plant, a joint venture with SAIC Motor, which has become a sore point for human rights activists as well as some shareholders, including top-20 investors Deka Investment and Union Investment.
Both urged the automaker to require of SAIC that it conducts an external independent audit of the plant, where rights groups have documented human rights abuses, including mass internment camps which China denies.
“Volkswagen must be certain that its supply chains are clean,” said Ingo Speich, head of sustainability and corporate governance at Deka.
About 10 activists, including one topless woman with ‘Dirty Money’ painted on her back, interrupted Blume’s speech, shouting that the automaker’s vehicles were built with forced labor and waving banners that read: ‘End Uyghur Forced Labor.’
They were rapidly escorted out by security staff.
VW’s China chief, Ralph Brandstaetter, visited the plant in Xinjiang earlier this year and said he saw no evidence of forced labor.
Yet, rights groups have said heavy pressure from the state makes it difficult to trust that employees can speak openly, and pointed to reports in Chinese media that the automaker’s suppliers across China source from the Xinjiang region.
Shareholders also flagged rising competition from Chinese electric vehicle competitors in China, with BYD outselling VW as the top passenger car brand earlier this year.
Chinese EV makers, as well as Tesla, threaten not only to weigh on VW’s market share in China but also in Europe, the shareholders will warn, while asking for clarity on how VW will defend its position.
