Home » VW withdrawal from China? Negotiations on Xinjiang plant

VW withdrawal from China? Negotiations on Xinjiang plant

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VW withdrawal from China?  Negotiations on Xinjiang plant

A metal barrier blocks the entrance to the Volkswagen plant in Ürümqi (Xinjiang) in western China on April 7, 2014. picture alliance / dpa | Stephan Scheuer

After BASF’s withdrawal from the Chinese province of Xinjiang, VW is now negotiating with its Chinese partner about the future of the location.

When asked, a spokesman left it open whether a withdrawal from the region was also under discussion.

The VW Urumqi location, which opened in 2013, has been criticized for possible human rights violations in the province inhabited by Uighurs.

Following the chemical company BASF, Volkswagen is also examining a reorganization of its activities in the Chinese region of Xinjiang. The background is reports of possible human rights violations. “The Volkswagen Group is currently in discussions with the non-controlled Saic-Volkswagen joint venture about the future direction of business activities in the Xinjiang province,” a company spokesman told the German Press Agency on Wednesday.

“Various scenarios are currently being intensively examined.” When asked, the spokesman left it open whether a withdrawal from the region was also under discussion. There is no comment on the content of the ongoing discussions.

The VW Urumqi location, which opened in 2013, has been criticized for possible human rights violations in the province inhabited by Uighurs. In the summer, the car company commissioned a company to examine the working conditions at the plant in Xinjiang for human rights violations. The auditors announced in December that they had been unable to find any evidence or evidence of forced labor among employees.

VW had previously pointed out that the Urumqi plant in Xinjiang was a joint venture with the Chinese partner Saic, in which the partner had the majority control. The contract actually runs until 2029.

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BASF kündigt Rückzug aus Xinjiang an

The BASF Group announced on Friday that it would sell shares in its two joint ventures in Korla, China, in the center of the Xinjiang region, and also referred to recent reports of possible human rights violations. Several politicians then asked Volkswagen to do the same.

Less than 200 employees in the factory

According to previous VW information, the Urumqi location only has around 197 employees who only prepare vehicles for delivery. Car production has now stopped at the site and the number of employees has been reduced from 650 to under 200.

Volkswagen recently said at the beginning of February that it was taking its responsibility as a company in the area of ​​human rights very seriously worldwide – including in China. We adhere closely to the United Nations Guiding Principles in the area of ​​business and human rights

Uighurs, members of other minorities and human rights organizations have been reporting for years that hundreds of thousands of people in Xinjiang are being put into re-education camps against their will, in some cases tortured and forced to do forced labor. The Chinese government denies these allegations.

dpa/jm

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