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VW executives face backlash over luxury conference in Sweden

Caspar Frey by Caspar Frey
September 7, 2024
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Volkswagen’s top management has come under fire for holding a lavish conference in Sweden amidst the company’s ongoing crisis. The timing and location of the event have drawn sharp criticism from the works council and the IG Metall union.

VW executives face backlash over luxury conference in Sweden
Oliver Blume, CEO of the Volkswagen Group at the annual press conference in March: He is said to have given insights into the group’s strategy at the criticized conference. (Source: IMAGO/Jens Schicke/imago)

VW management retreat sparks controversy

As Volkswagen grapples with a crisis that threatens job security and plant closures in Germany, the company’s decision to hold a high-level management conference at a luxury venue in Sweden has ignited controversy. The three-day event, which began on Thursday, is taking place at the “Artipelag,” an art museum and hotel on an island in the Stockholm archipelago.

A spokesperson for the group works council harshly criticized the meeting, stating, “The gathering of the top management circle and board members in Sweden cannot be justified to our workforce, especially not after the events of Monday this week.” The works council is calling for a thorough review of such events, suggesting that “The principle of ‘Stöcken instead of Stockholm’ would certainly be more appropriate for the group.”

Luxury accommodations and closed art exhibition

IG Metall Wolfsburg, the local branch of Germany’s largest trade union, also expressed strong disapproval, referring to the event as a “luxury trip” for top management. The union reported that the art exhibition “I Follow the Sun” was closed to the public specifically for this meeting. According to the Artipelag’s website, the venue is indeed closed for the duration of the conference.

The union claims that most participants are staying at the “Radisson Blue Waterfront,” which they describe as a “temple.” While the exact costs of this “top management class trip” are unknown, the union speculates that “the bill certainly doesn’t reach the equivalent of the board’s cancellation plans, which doesn’t shy away from closing VW factories and pronouncing layoffs when faced with profitability problems.”

Employees protest before the start of a staff meeting in a hall at the VW plant. (Source: Moritz Frankenberg/dpa)
Employees protest before the start of a staff meeting in a hall at the VW plant. (Source: Moritz Frankenberg/dpa)

VW defends annual strategy meeting

Volkswagen confirmed the meeting in Sweden, with a spokesperson explaining that it is an annual business and strategy meeting for the global top management of all brands and companies within the group. This year, the home country of the truck subsidiary Scania was chosen as the venue.

The spokesperson defended the gathering, stating, “These meetings are particularly important in difficult times to get a common view of the challenges and opportunities.” CEO Oliver Blume reportedly provided insights into the new group strategy, with topics such as financial key figures, new technologies, and business models on the agenda.

IG Metall Wolfsburg concluded its criticism by noting that virtual reality was also a topic at the meeting. The union pointedly remarked, “One might wonder, however, whether some participants should first arrive in the real world after the news of this week before dealing with the virtual world of tomorrow.”

Tags: luxury conferenceVolkswagen

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