Volkswagen Sells Xinjiang Plant For "Economic Reasons"

Volkswagen has sold its plant in Xinjiang, citing “economic reasons” amid growing scrutiny over alleged human rights abuses in the region, Anna Cooban reported for CNN.

Volkswagen cited intense competition in the EV market as a driving factor behind the sale. I Photo: Zhu Xingxin, China Daily

The plant, part of a joint venture with China’s SAIC Motor, ceased producing combustion engine vehicles in 2019 and has since operated as a distribution center.

A Volkswagen spokesperson said the sale was necessary to accelerate the company’s transition to electric vehicle (EV) production as demand for combustion vehicles declines.

Electric vehicle sales are surging globally and could account for 45% of all car sales in China this year, according to the International Energy Agency (IEA).

Volkswagen cited intense competition in the EV market as a driving factor behind the sale.

The move follows years of accusations against China over alleged forced labor and mass detentions in Xinjiang targeting the Uyghur Muslim minority. A 2022 report by the UN High Commissioner for Human Rights accused China of “serious human rights violations” in the region that may constitute “crimes against humanity.”