Volkswagen Exits Xinjiang Operations Following Human Rights Criticism

The automaker cites economic reasons for selling its Urumqi plant and test tracks while extending its partnership with SAIC until 2040.

• Volkswagen has sold its factory in Urumqi, Xinjiang, and two test tracks to Shanghai Motor Vehicle Inspection Certification, a state-owned Chinese company.
• The decision follows years of criticism over alleged human rights abuses in the region, including forced labor accusations targeting the Uyghur minority.
• Volkswagen stated the sale was driven by economic considerations and a strategic shift toward electric vehicle production in China.
• The automaker extended its joint venture with SAIC until 2040 and plans to launch 18 new models by 2030, focusing on electric and hybrid vehicles.
• Despite audits finding no evidence of forced labor in the factory, critics questioned the reliability of the investigations given restrictions in Xinjiang.

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