Volkswagen exits Xinjiang amid human rights concerns
The German automotive company Volkswagen has sold its factory in Xinjiang, in northwestern China, as reported by the dpa agency. The company faced criticism for alleged human rights violations against the Uyghur minority living in that region.
The dpa agency noted that Volkswagen conducted an investigation into its Xinjiang factory. There have been longstanding allegations that China uses forced labour and reeducation camps against the Uyghur minority, claims which the Chinese government denies.
Criticism of 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 from Shanghai. Economic considerations were cited as the reason for the sale.
Volkswagen plans to launch a new production offensive starting in 2026 and intends to introduce 18 new models of its core Volkswagen and Audi brands to the market by the end of the decade, in cooperation 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.
