Volkswagen Sells Xinjiang Plant Amid Human Rights Scrutiny

Volkswagen has sold its plant in Xinjiang, China, amidst ongoing scrutiny over alleged human rights abuses in the region. The plant, previously used for combustion engine vehicles, was sold to Shanghai Motor Vehicle Inspection Certification, a subsidiary of the state-owned Shanghai Lingang Development Group, due to economic reasons and increasing competition from electric vehicle manufacturers. This decision marks Volkswagen's complete exit from Xinjiang, with the sale including test tracks in Turpan Xinjiang and Anting, Shanghai. Although Volkswagen faced criticism for its presence in Xinjiang, the company has consistently stated there were no signs of forced labor at their facility. Volkswagen plans to extend its partnership with SAIC Motor Corp until 2040 and intends to launch 18 new models by 2030, focusing heavily on the Chinese market. This development highlights the growing shift in the automotive industry towards electric vehicles amidst geopolitical and ethical concerns.