German consultancy staff distance themselves from VW China forced labour audit after giving clean chit

Senior staff members of Loening GmbH, a German consultancy firm that is working with Volkswagen, have distanced themselves from an audit conducted by their firm, on the carmaker’s joint venture in China’s Xinjiang province, as reported by Reuters. The audit, commissioned by Volkswagen under intense investor scrutiny, aimed to investigate allegations of forced labour at the jointly owned site in Xinjiang, an area where rights groups have reported abuses, including mass forced labour in detention camps. Beijing has consistently denied these allegations. Loening GmbH’s founder and CEO, Markus Loening, had previously announced on December 5 the results of the audit, asserting that the firm found no evidence of forced labour at the Xinjiang plant, a joint venture with SAIC Motor. However, he acknowledged the challenges of data collection in China. Later, Loening GmbH posted a statement on LinkedIn, clarifying that, apart from Markus Loening and senior strategy adviser Christian Ewert, along with two Chinese lawyers, no other team member participated, supported, or backed the project. The statement emphasized the firm’s commitment to being guided by international human rights standards. On Wednesday, six senior employees shared the LinkedIn statement, with four explicitly stating their lack of involvement with the audit. One added, “I have not supported the acceptance of this project, nor have I been involved in it in any capacity.” Responding to Reuters about the team’s diverse views, Markus Loening highlighted that projects were typically carried out by small expert teams, in this case, himself and Ewert, supported by two Chinese lawyers. He affirmed that his assessment as project director and chief executive remained unchanged and public. The audit results prompted cautious reactions from some Volkswagen investors, welcoming the investigation while urging for sustained efforts to enhance transparency in the carmaker’s supply chain in China. (With inputs from agencies)