Volkswagen exits Xinjiang amid rights concerns, plans new push
The German automotive company Volkswagen has sold its factory in Xinjiang, located in the northwestern part of China, according to reports from the dpa agency. The company faced criticism due to allegations of human rights violations against the Uyghur minority living in the region.
11:04 AM EST, November 27, 2024
The dpa agency highlighted that Volkswagen initiated an investigation into its factory in Xinjiang. There have been persistent allegations that China is using forced labor and reeducation camps against the Uyghur minority, claims which the Chinese government denies.
Criticism regarding the factory's location in Xinjiang has come not only from human rights organizations but also from Volkswagen's investors. The German company operated the plant in collaboration with the Chinese state-owned car manufacturer SAIC.
According to reports, after months of negotiations, Volkswagen sold its Xinjiang plant to a state-owned Chinese company based in Shanghai, citing economic reasons for the sale.
Volkswagen plans to initiate a new production offensive beginning in 2026, aiming to introduce 18 new models under the core Volkswagen and Audi brands to the market by the end of the decade, in collaboration with SAIC. Of these, 15 models are intended exclusively for the Chinese market.
By 2030, Volkswagen aims to sell 4 million cars annually, thereby achieving a 15 percent market share in China.
