Volkswagen, SAIC decide to sell Xinjiang factory

Volkswagen and Shanghai’s SAIC Motor have decided to sell a factory in Xinjiang, China, following criticism over human rights concerns. They have also extended their joint venture until 2040, focusing on electric vehicles.

Volkswagen, a pioneer in China’s automotive industry, has a longstanding 40-year partnership with SAIC. The iconic Santana sedan, produced by their joint venture, became a staple of Chinese taxi fleets for many years.

SAIC, China’s largest automaker, produced five million vehicles in 2023 and collaborates with other global brands such as General Motors.

Volkswagen, encompassing Audi and Porsche, aims to introduce 40 new models in China by 2030, with 30 of them being electric vehicles. As part of this strategy, SAIC Volkswagen plans to launch 18 new models, including eight EVs, by 2030.

Attribution: AP

Subediting: M. S. Salama