Volkswagen exits Xinjiang amid human rights allegations
The German automotive company Volkswagen has sold its factory in Xinjiang, located in the northwestern part of China, reports the dpa agency. The company faced criticism over human rights violations against the Uyghur minority living in that region.
The dpa agency reported that Volkswagen conducted an investigation into its factory in Xinjiang. There have been long-standing allegations that China uses forced labour and reeducation camps against the Uyghur minority, which the Chinese government denies.
Criticism of the factory's location in Xinjiang has come not only from human rights organisations but also from Volkswagen's investors. The German company operated the plant in partnership 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 from Shanghai. Economic reasons were cited for the sale.
Volkswagen plans to embark on a new production initiative beginning in 2026, introducing 18 new models of 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, achieving a 15 percent market share in China.
