Volkswagen Exits Xinjiang Amidst Global Tensions

Volkswagen announced its exit from Xinjiang, responding to pressure regarding human rights abuses against Uyghurs. The plant in Xinjiang will be sold to Shanghai Motor Vehicle Inspection Certification. VW's exit aligns with economic goals alongside extending a partnership with SAIC amidst decreasing sales in China's challenging market.

Volkswagen has decided to withdraw all its operations from China's Xinjiang region, a move that comes amidst growing calls to end their presence in an area accused of human rights abuses against the Uyghur population.

The German carmaker declared it would extend its strategic partnership with Chinese counterpart SAIC until 2040. The plant in Xinjiang will be sold to Shanghai Motor Vehicle Inspection Certification, a state-owned company, marking Volkswagen's complete exit from the region. This decision coincides with efforts to bolster performance in China's sluggish automotive market.

In recent years, the Xinjiang facility's significance waned, and its operations ceased vehicle production in 2019. Volkswagen's exit, claimed to be for economic reasons, alleviates reputational concerns and aims to revitalize VW and SAIC's joint venture amid economic uncertainties and potential EU-China trade challenges.

(With inputs from agencies.)