Analysis

Xinjiang: Why a red flag became helpful for Volkswagen

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Published: November 27th, 2024,
Last updated: May 28th, 2025

Ex-Volkswagen-Chef Martin Winterkorn und SAIC-Chef Mao Huanyuan bei der Vertragsunterzeichnung zum Bau der Fabrik in Urumqi 2014.
Ex-Volkswagen boss Martin Winterkorn (right) and SAIC boss Mao Huanyuan at the signing of the contract to build the factory in Urumqi in 2012. (In the background: former German Chancellor Angela Merkel and China’s then Prime Minister Wen Jiabao)
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The withdrawal from Xinjiang marks the end of a disastrous miscalculation for the German car manufacturer Volkswagen. Neither did the region develop into a lucrative location for the company in the People’s Republic of China, nor did the early warnings of a drastic level of repression against the Uyghur minority prove to be exaggerated. Everything that could go wrong for Volkswagen in Xinjiang did go wrong. Eleven years after the opening of the plant in Urumqi, alongside the state-owned joint venture partner SAIC, a chapter that cost the Group a great deal of money and reputation is coming to an end.

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Lieferketten Car Industry Volkswagen Human Rights Xinjiang Forced Labor Uyghurs Industry