Volkswagen, Chinese partner SAIC to sell joint venture plant in west China's Xinjiang
Published On : 2024-11-27T20:27:10+0530 [ IST ] |
Author : Mayur_Tembhare
Reading Time : 1 mins
Home
Railway News
None :
Volkswagen and Shanghai SAIC Motorhave agreed to sell a factory in China's far western Xinjiang region that drew criticism due to accusations by western governments of human rights violations.
Volkswagen AG was one of the first foreign investors in China's auto industry. The 1980s model Santana sedans its JV in Shanghai made for many years formed the basis of taxi fleets in Shanghai and other cities.
SAIC based in Shanghai says it is the largest automaker in China turning out 5 million vehicles in 2023. It also has partnerships with General Motors and other automakers.
Volkswagen said it plans to launch 40 new models in China over the next three years and have a lineup of 30 EVs by 2030. On Wednesday SAIC Volkswagen said it plans to launch 18 new models by 2030 including eight EVs.
Volkswagen is among many foreign automakers caught flat-footed by an electric vehicle boom in China that has shaken up the market the world's largest over the last three years.
The joint venture site in Xinjiang's capital Urumqi will be sold to the Shanghai Motor Vehicle Inspection Center while preserving the jobs of the roughly 170 people who work there. It also sold test tracks in Xinji
In response to criticism over its operations in Xinjiang Volkswagen said an audit it commissioned found no evidence of forced labour at the facility but it was considering options for its future.
The plant operated by a subsidiary of SAIC-VW began production in 2013 and had a maximum capacity of 50,000 vehicles. It no longer makes vehicles but provides inspections.
The restructuring of the VW-SAIC joint venture comes at a time of uncertainty over costs and market access given moves by western governments to impose higher tariffs on electric vehicles imported from China.
Source : Reporters From Sunrise Chronicles
Tags : Earlier , Xinjiang , Turpan , On Wednesday , volkswagenalso sold test tracks , yearssaic joint venture comes , Urumqi , Master Stock Valuation , China , westernelectric vehicles electric vehicles ,
Summary :
Volkswagen and Shanghai SAIC Motorhave agreed to sell a factory in China's far western Xinjiang region that drew criticism due to accusations by western governments of human rights violations.
<