Image: THOMAS KIENZLE (AFP)
The German carmaker Volkswagen is examining a reorganization of its business 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 group spokesman told the financial news agency dpa-AFX and dpa on Wednesday.
“Various scenarios are currently being intensively examined,” said the spokesman. When asked, the 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. In the summer, the group commissioned a company to investigate the working conditions at the controversial plant in Xinjiang in light of the allegations. The auditors announced in December that they had been unable to find any evidence or evidence of forced labor among employees.
Number of employees in the factory reduced
VW had previously pointed out that the Urumqi plant in Xinjiang was a joint venture with the Chinese manufacturer Saic, in which the partner had the majority control. The contract runs until 2029. 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 significantly reduced from 650.
- Read here: Possible staff cuts: Volkswagen wants to reduce administrative costs by 20 percent
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 into forced labor. The Chinese government denies these allegations.
On Wednesday, the “Handelsblatt” reported that forced labor may have been used in the construction of a test track belonging to the site in the town of Turpan in the region. The newspaper relies on information from VW employees and research by scientist Adrian Zenz. A VW spokesman said that so far the company had no evidence of human rights violations in connection with the test site. If new findings or information emerge, VW will investigate these and take appropriate measures if necessary.
The chemical company BASF announced on Friday that it would sell shares in its two joint ventures in Korla, China, in the center of the Xinjiang region, citing recent reports of possible human rights violations. Several politicians then asked Volkswagen to do the same.
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