Volkswagen Says It Is Exiting China’s Xinjiang Region After 12 Years
Published On Nov 27, 2024, 3:21 AM
Volkswagen (VW) announced that it is selling its assembly plant and test tracks located in Xinjiang, China. This decision comes after increasing criticism from human rights activists regarding the region's treatment of ethnic minorities, particularly Muslim groups. VW's presence in Xinjiang had drawn condemnation, especially as imports from the area are being restricted by the U.S. and several European nations due to concerns about forced labor. The assembly plant had not produced cars since 2019 and has become a financial liability for the company, coinciding with a broader industry shift towards electric vehicle production in China.
Stock Forecasts
TSLA
Negative
While VW's exit from Xinjiang removes a liability, it also reflects challenges in adapting to China's shift towards electric vehicles, which could continue to press margins in the short term.
Related News
Yes, It ‘Looks Like a Duck,’ but Carriers Like the New Mail Truck
Nov 26, 2024, 1:17 PM
The electric trucks have a side cargo door, more space and, critically, air-conditioning, promising some long-overdue relief for carriers, who haven’t had an upgrade since the 1980s.
How President-elect Donald Trump may impact investors in these 8 market sectors
Nov 26, 2024, 12:24 PM
President-elect Donald Trump's agenda carries risks and rewards for various investment sectors, market experts said.
California may exclude Tesla from EV rebate program
Nov 26, 2024, 11:42 AM
California Gov. Gavin Newsom may exclude Tesla and other automakers from an EV rebate program if the incoming Trump administration scraps a federal tax credit for EV purchases.