“Volkswagen has sold its plant in China’s Xinjiang region to Shanghai Motor Vehicle Inspection Certification (SMVIC), a division of the state-owned Shanghai Lingang Development Group.”, — write: epravda.com.ua
Volkswagen has sold its plant in China’s Xinjiang region to Shanghai Motor Vehicle Inspection Certification (SMVIC), which is a division of the state-owned Shanghai Lingang Development Group. This is reported by Reuters. The decision to sell is linked to pressure from human rights groups due to reports of rights violations. of the Uyghur population in the region. Volkswagen claims that the sale was made for economic reasons, not due to pressure. China denies any human rights abuses in Xinjiang.Advertisement: The Xinjiang plant, which opened in 2013, has been largely inactive in recent years. It produced the Volkswagen Santana model, had the capacity to produce 50,000 cars per year, but has not produced a car since 2019. About 200 workers remain at the plant, which handles final quality checks and delivers cars to dealers in the regionAdvertisement: The company also said it is extending its partnership with China’s SAIC until 2040, an important step in Volkswagen’s biggest market.Under the terms of the deal, the financial details of which have not been disclosed, SMVIC will also take over the SAIC/VW test sites in Turfan (Xinjiang) and Antini (Shanghai). After that, Volkswagen will no longer have a presence in Xinjiang. Read also: Made in Germany no longer works: why Volkswagen is forced to close factoriesReminder: Volkswagen expects to deliver fewer vehicles in 2024 than in 2023, the fourth decline in sales in seven years
