Volkswagen to Terminate Partnership at Factory in China's Xinjiang Region

According to information provided by two knowledgeable individuals on the subject, Volkswagen is set to exit its controversial factory in China's Xinjiang region after reaching an agreement to sell it to a buyer affiliated with the Shanghai government, in partnership with its Chinese partner. Sources indicate that the German automaker will sell the facility to Shanghai Motor Vehicle Inspection Certification (SMVIC), a subsidiary of the state-owned Shanghai Lingang Development Group. The value of the deal has not been disclosed. Volkswagen's presence in Xinjiang has become a headache for the company in recent years, following reports by human rights groups documenting abuses, including mass forced labor in the region. Beijing denies such violations. According to the agreement, SMVIC will also take over SAIC/VW's test tracks in Turpan Xinjiang and Anting in Shanghai. Following the agreements, Volkswagen will no longer have any presence in Xinjiang.