Volkswagen has announced the sale of its plant in Xinjiang, China, citing economic reasons. The plant, which was previously producing combustion engine vehicles until 2019, has been operating as a distribution center for models produced in other factories. Due to the increasing demand for electric vehicles and the decline in combustion engine vehicle sales, Volkswagen has decided to accelerate the transformation of its production network.
Electric car sales are on the rise globally, with China expected to see electric vehicles account for 45% of all car sales this year. The sale of the Xinjiang facility, owned as part of a joint venture with China's SAIC Motor, comes amidst ongoing accusations of human rights abuses in the region, particularly against the Uyghur Muslim minority group.
