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Article

27 Nov 2024

Author:
Reuters,
Author:
Der Spiegel

China: Volkswagen confirms plans to sell Xinjiang plant & two test tracks amid forced labour allegations

"Volkswagen confirms plans to exit controversial Xinjiang operation," 27 November 2024

Volkswagen will exit its controversial plant in China's Xinjiang region, after years of investor pressure to abandon its presence in the region... Volkswagen and its Chinese partner agreed to sell the asset to a Shanghai government-owned buyer, the German car maker said...

The move will bring to an end years of mounting investor pressure to abandon VW's presence in the region, where rights groups have documented abuses, including [alleged] mass forced labour in detention camps. Beijing denies any such abuses...

The German automaker and SAIC will sell the plant to Shanghai Motor Vehicle Inspection Certification (SMVIC), a subsidiary of state-owned Shanghai Lingang Development Group, which will take on all the plant's employees...

Under the deal, SMVIC will also take over SAIC/VW's test tracks in Turpan Xinjiang and Anting in Shanghai, they added. Following the deals, Volkswagen will no longer have a presence in Xinjiang. At the same time, Volkswagen will extend its partnership with SAIC by a decade to 2040...

Part of the following timelines

China: 83 major brands implicated in report on forced labour of ethnic minorities from Xinjiang assigned to factories across provinces; Includes company responses

China: Mounting concerns over forced labour in Xinjiang

Association of Critical Shareholders raises questions to Volkswagen about the announced audit of the VW SAIC plant in China; incl company response

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