Volkswagen, the German automotive giant, has sold its factory in Xinjiang, northwestern China, following allegations of human rights abuses in the region, as reported by the German news agency dpa. The company had faced mounting criticism over its operations in an area linked to claims of forced labor and re-education camps targeting the Uyghur minority—allegations that the Chinese government denies.
The decision to divest came after an internal investigation by Volkswagen and increasing pressure from human rights organizations and investors. The factory, operated in partnership with Chinese state-owned automaker SAIC, has now been sold to a Shanghai-based state-owned enterprise. The company cited economic reasons for the sale.
Despite this move, Volkswagen remains committed to its presence in China, its largest market. The automaker plans to launch 18 new models by 2030 through its collaboration with SAIC, with 15 of these exclusively for Chinese consumers. Volkswagen aims to sell 4 million vehicles annually in China by the end of the decade, targeting a 15% market share.