Volkswagen’s (VW) investor meeting descended into chaos this morning as concerns from investors and activists regarding electrification swelled.
VW Group has been one of many companies rebuked over the past year for its electrification plans, which some allege are not aggressive enough. Furthermore, with the company’s stock continuing a two-year decline and its market position in top regions collapsing, investors have also raised concerns regarding the automaker’s plans. According to Reuters, those concerns came to a head today, with activists and investors sharing their displeasure with company leadership at an investor meeting this morning.
Three primary concerns took center stage at the VW investor meeting this morning in Germany. Foremost, investors and protestors raised concerns about alleged forced labor at a VW production facility in Xinjiang, China. These concerns mounted with institutional investors calling for an independent review of the facility and protestors storming the meeting area and throwing a cake at Volkswagen leadership.
Protesters threw an object at Volkswagen chairman Hans Dieter Poetsch at a shareholder meeting. Poetsch managed to duck in time to avoid being hit by what appeared to be a cake pic.twitter.com/7WxMcMkm9M
— Reuters (@Reuters) May 10, 2023
VW noted in the shareholder meeting that a company representative visited the plant earlier this year and found no evidence of forced labor. Investors and human rights organizations believe a third-party investigation may be necessary as working conditions may not immediately reveal forced labor.
The second primary concern focused on China and Volkswagen’s market position within the world’s second-largest economy. Investors were keen to highlight that competition, particularly from Tesla and BYD, has been slowly eroding VW’s historical dominance of the region, which could result in the fall of the market hegemon in the coming years.
Defending his company’s position, VW CEO Oliver Blume noted that the automaker is on track to continue to hold its Chinese market position well into the future and will be looking to grow its sales in the coming months by tailoring to Chinese tastes and building local partnerships.
The third and final concern was regarding VW’s overall electrification strategy. Most prominently, protestors glued themselves to the road outside the meeting location, demanding VW accelerate its EV adoption to reduce its carbon footprint. While perhaps not as vocally, investors noted that VW’s shrinking market position in China and the United States could be aided by an increased focus on EV offerings that consumers want to buy.
Following this morning’s meeting, VW stock continued its more than 2-year-long fall.
William is not an investor in Volkswagen Group but is invested in the subsidiary brand Porsche AG.
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