Volkswagen is leaving its controversial factory in China's Xinjiang region. The factory and test track in the province have been sold, the company announced today, with the buyer being Shanghai Motor Vehicle Inspection Certification (SMVIC), a subsidiary of state-owned Shanghai Lingang Development Group. This means that VW is no longer present in this Chinese province. The company did not disclose the purchase price of the factory.
At the same time, Volkswagen and SAIC extended their partnership for another decade until 2040. As part of the joint venture, the partners are planning a “new production offensive” from 2026 and want to introduce a total of 18 new car models to the market by 2030. VW wants to sell four million cars a year and achieve a market share of 15 percent in China.
The plant is under fire
VW cited economic reasons as the reason for selling the factory in China. However, the plant in the Xinjiang region has been the subject of criticism for years. The region is inhabited by Uyghurs, who, according to human rights defenders, are forced into forced labor, tortured, surveilled and detained in “re-education” camps. The Chinese government denies these allegations.
At the beginning of the year, the German daily “Handelsblatt” reported that it is possible that forced labor was used in the construction of the VW test track in Turpan. The newspaper referred to information from VW employees and the analysis of one of the experts. The German car company then undertook to conduct an audit in this respect.
Earlier, the chemical concern BASF, also from Germany, withdrew from Xinjiang province. This happened after an investigation by ZDF television revealed that BASF's Chinese partner was surveilling Uyghurs.
(DPA, RTR/stef)