SAIC official announcements or major business news outlets

Volkswagen Exits Xinjiang, Sells Urumqi Plant to Shanghai Lingang Amid Rights Concerns

Nov 27, 2024, 08:45 AM

Volkswagen (VW) has announced its decision to exit the Xinjiang region in China, selling its controversial Urumqi plant in the area. The plant, co-owned with its Chinese partner SAIC, will be sold to a subsidiary of the state-owned Shanghai Lingang Economic Development Group. This move also includes the sale of a test track in Turpan, effectively ending VW's presence in Xinjiang. The decision comes after years of criticism from human rights activists and mounting pressure from investors over allegations of human rights abuses, including forced labor, in the region. VW's partnership with SAIC has been extended through 2040, despite the sale.