Volkswagen sold its car factory in Xinjiang to SMVIC. Following this decision, certain factories in Germany may suffer the same fate.
Volkswagen has to make tough decisions in an attempt to maintain its profitability in the current economic context of the car market. Due to financial problems, the German group has decided to cut jobs, reduce wages, and may even close factories in Germany, an unprecedented move in the 87-year history of the manufacturer.
right ReutersVolkswagen is selling operations in China’s Xinjiang after years of mounting pressure to abandon its presence in a region where rights groups have documented abuses against the population. The automaker made the announcement at the same time it said it was extending its partnership with Chinese automaker SAIC by another decade to 2040, a major move by the German automaker in its biggest market. Thus, the partnership wants to launch 18 new models by 2030.
Volkswagen is considering closing some factories in Germany to cut costs
Volkswagen and SAIC will sell their Xinjiang plant to Shanghai Motor Vehicle Inspection Certification (SMVIC), a unit of state-owned Shanghai Lingang Development Group, which will take over all employees. Under the terms of the agreement, the financial details of which were not disclosed, SMVIC will also take over SAIC/VW’s test tracks in Turpan, Xinjiang and Anting in Shanghai. Volkswagen will then no longer have a presence in Xinjiang.
The Xinjiang plant, which opened in 2013 and previously assembled the Volkswagen Santana, has declined in importance in recent years after the automaker cut jobs, leaving about 200 employees to carry out final quality checks and teach the vehicles of dealers in the region. The plant had the capacity to produce 50,000 cars annually, but has not produced a single car since 2019.
Source: www.promotor.ro
