Uyghur Muslim: Volkswagen exits Xinjiang operations following rights concerns

Volkswagen (VW) has announced the sale of its operations in China’s Xinjiang region, following years of scrutiny over alleged human rights abuses against the Uyghur Muslim population.

The German automaker revealed the decision on Wednesday, coinciding with the extension of its partnership with Chinese automaker SAIC until 2040—a move aimed at revitalizing its performance in its largest global market.

Volkswagen and SAIC will sell the Xinjiang facility, including its test tracks in Turpan and Shanghai’s Anting district, to Shanghai Motor Vehicle Inspection Certification (SMVIC), a subsidiary of the state-owned Shanghai Lingang Development Group.

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SMVIC will take on all employees from the plant, ensuring continuity for the workforce. Financial terms of the sale were not disclosed.

The Xinjiang facility, which opened in 2013, had the capacity to produce 50,000 vehicles annually but had not manufactured cars since 2019.

It previously assembled the Volkswagen Santana model but had been operating at a reduced scale, focusing on final quality checks and deliveries.

Volkswagen stated that the decision to sell was driven by economic factors, denying allegations that it maintained operations in Xinjiang to satisfy Beijing’s conditions for broader market access.

The exit eliminates a significant source of controversy for Volkswagen, which had faced criticism from rights groups for its presence in Xinjiang amid allegations of forced labor and other abuses—a charge Beijing has consistently denied.