Volkswagen sells plant in Xinjiang for economic reasons

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Volkswagen verkauft sein Werk in Xinjiang aus wirtschaftlichen Gründen. Der Schritt erfolgt inmitten wachsender Konkurrenz im Elektromarkt und angesichts von Menschenrechtsvorwürfen in der Region.
Volkswagen sells his work in Xinjiang for economic reasons. The step takes place in the middle of growing competition in the electric market and in view of human rights allegations in the region. (Symbolbild/DNAT)

Volkswagen sold his work in Xinjiang, a region in northwestern China, which is criticized for human rights violations. The sale was decided for economic reasons. A company spokesman said: "There is no business model for the work." Control motor vehicles were produced there by 2019. Since then, the work has been effectively served as a sales center for models manufactured in other factories.

increasing pressure from electrical vehicles

The spokesman referred to the "big pressure" by competitive automobile manufacturers that produce electric vehicles in large quantities. Volkswagen had to "accelerate the transformation of its production network" because the demand for vehicles with combustion engines is declining. The sales of electric cars are increasing in many countries, and in China you could already make up to 45 % of the total vehicle sale this year, as the international energy agency reports.

sale of the work in Xinjiang

The sale of the work takes place as part of a joint venture with the Chinese company Saic Motor. Volkswagen gave the sale in a press release known. This step comes at a time when the US government and human rights organizations China have been accusing for years, forced labor and other human rights violations to be practiced in Xinjiang.

allegations of human rights and international reports

China has repeatedly rejected all allegations of human rights violations in the region. A report by the UN High Commissioner for Human Rights from 2022 found that China committed "serious human rights violations" against Uighers in Xinjiang, who may represent "crimes against humanity". In 2018, the Chinese government was accused of capturing at least 800,000 - and possibly more than 2 million - Uighers and members of other Muslim minorities in internment camps.

contradictory statements about working conditions

Volkswagen is criticized by human rights activists who denounce the work in Xinjiang. However, the company explains that there are no signs that forced labor has taken place in this factory. A visit to managers in February 2023 did not give any evidence of human rights violations or far -reaching problems with working conditions ". A audit also "_ Blank"> Audit also found no signs of forced labor in the factory. However, the Financial Times reported in September that the audit would not have met international standards.

growing competition and location problems

Approximately addressed to the FT article, a Volkswagen spokesman to CNN told that "Volkswagen always complies with the legal requirements in his communications. At no time was there a deception of investors or the public." In addition, the German automobile manufacturer has to deal with increasing competition in China, the largest market for passenger cars, since local manufacturers have significantly expanded the production and sale of electric vehicles. There are also challenges in Germany: Volkswagen announced that they want to “close at least” three works in the country and to relieve tens of thousands of employees. These closures would be the first in the 87-year company history on German soil.