Volkswagen sells its automobile factory in Xinjiang, citing ‘economic reasons’

Volkswagen has sold its factory in Xinjiang, a region in northwestern China besieged by accusations of human rights abuses, citing “economic reasons”.

“There is no business case for (the facility),” a spokesman said, noting that the facility produced internal combustion engine vehicles until 2019 and has since operated as an effective distribution center for models produced at other plants.

The spokesman pointed out the “great pressure” from rival automobile manufacturers producing electric vehicles and said that Volkswagen needed to “accelerate the transformation of its production network” and that “the demand for combustion engine vehicles is decreasing.”

Electric car sales are rising in many countries, and in China they could account for 45% of all car sales this year, according to the International Energy Agency.

The German automaker announced the sale of the facility it owns as part of a joint venture with China’s SAIC Motor. Press release Wednesday.

Sales come next US government and human rights groups have been accusing China of using it for years. forced labor and committing other abuses, such as mass detentions, against the Uyghur Muslim minority group in Xinjiang.

China has repeatedly and vehemently denied accusations of human rights violations in the region.

In 2022, the United Nations High Commissioner for Human Rights published: a report He said China had committed “serious human rights violations” against Uyghur Muslims in Xinjiang, which could amount to “crimes against humanity”.

US State Department official in 2018 accused China will detain at least 800,000 “and possibly more than 2 million” Uyghurs and members of other Muslim minorities in internment camps in the region.

China defined the facilities as “vocational training centers” and claimed that these centers were closed in 2019.

owned by Volkswagen faced criticism A complaint was received from rights activists, claiming that they own a factory in Xinjiang, but it was stated that there was no sign of forced labor in the facility. The company said managers’ visit to the facility in February 2023 gave “no indication of any human rights violations or wider problems with working conditions.”

He also said: control An investigation last year showed no signs of forced labor at the factory. However, the Financial Times reported In September, the audit failed to meet international standards.

When asked to comment on FT articleA spokesperson for Volkswagen told CNN: “Volkswagen always complies with legal requirements in its communications. There has never been any deception of investors or the public.”

German car manufacturer grappling with increasing competition In China, the world’s largest passenger car market, local automobile manufacturers have increased the production and sales of electric vehicles.

There are problems at home too. Germany’s largest producer said last month: planned to close It laid off “at least” three factories and tens of thousands of employees in the country. The closings will be the first on home soil in the company’s 87-year history.

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