Volkswagen Sells Xinjiang Plant to Shanghai Lingang After Investor Pressure Over Human Rights

Nov 27, 2024, 09:09 AM

Volkswagen AG and its Chinese partner SAIC Motor Corp. have agreed to sell their plant in Urumqi, located in China's Xinjiang Uyghur Autonomous Region, to a subsidiary of state-owned Shanghai Lingang Development Group, according to sources. The sale includes a test track in Turpan, effectively ending Volkswagen's presence in Xinjiang. The decision comes after years of investor pressure and criticism from human rights activists over allegations of widespread human rights abuses in the region, including mass forced labor in detention camps. Rights groups have documented such abuses, leading to increased scrutiny of international companies operating in Xinjiang. Volkswagen's joint venture with SAIC has been extended through 2040, underscoring the automaker's continued commitment to the Chinese market despite exiting Xinjiang.