Volkswagen and SAIC's Strategic Shift Amidst Xinjiang Controversies

Volkswagen and SAIC Motor sell a Xinjiang factory amid human rights criticisms. The companies extend their JV to 2040 to focus on electric vehicles. SAIC Volkswagen plans to launch 18 models by 2030, including eight EVs. About 170 jobs are preserved despite plant sale and restructuring.

Volkswagen and Shanghai's SAIC Motor have initiated a strategic shift by deciding to sell their factory in Xinjiang, China, in response to allegations of human rights violations raised by Western nations.

The two automakers also announced an extension of their 40-year-old joint venture until 2040, accelerating efforts to transition toward electric vehicles. Volkswagen was a pioneering foreign investor in China's automotive sector, achieving success with its 1980s Santana model.

Despite the Xinjiang plant sale, which includes job preservation for 170 employees, Volkswagen's broader strategy involves launching 40 new models in China over the next few years. This includes a significant focus on electric vehicles, highlighting shifts in the global automotive market.

(With inputs from agencies.)