The group justified its decision with “economic reasons” in a statement, but it comes amid increasing criticism of Volkswagen on the ethical level.
Ferdinand Dudenhofer, director of the Automotive Research Center in Bochum, said:Volkswagen “Respects public opinion,” while the media, investors and human rights advocates have for years criticized the activity of the leading European car manufacturing group in Xinjiang.
Volkswagen is the focus of attention because of its factory in Urumqi, the capital of Xinjiang, which opened in 2013 and in which it owns a stake through its local partner SAIC.
Deutsche Bank Deka withdrew Volkswagen shares from its “sustainable” stock portfolio in March 2023, after US rating agency MSCI warned of allegations of forced labor at the factory.
This controversial site, along with a test track in Turpan, will now be sold to the Chinese company (SMVIC), according to a Volkswagen statement.
The pressure intensified in February after the German chemical giant BASF announced that it would accelerate its withdrawal from two partnerships in this region.
