Volkswagen sells Xinjiang plant to Shanghai govtowned SMVIC
Move ends investor pressure over alleged abuses in Xinjiang
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SHANGHAI, Nov 27 Reuters Volkswagen will exit its controversial plant in China39;s Xinjiang region, after years of investor pressure to abandon its presence in the region, where rights groups have documented abuses including mass forced labour in detention camps.

Volkswagen and its Chinese partner agreed to sell the asset to a Shanghai governmentowned buyer, the German car maker said on Wednesday, confirming an earlier report by Reuters.

The move will bring to an end years of mounting investor pressure to abandon VW39;s presence in the region, where rights groups have documented abuses including mass forced labour in detention camps. Beijing denies any such abuses.

The transaction value of the deal was not revealed.

The significance of the plant, which previously assembled Volkswagen39;s Santana vehicle, has dwindled in recent years after the carmaker cut jobs, leaving about 200 employees to just conduct final quality checks and handing over vehicles to dealers in the region.

Volkswagen has denied reports that it kept the plant open as a condition from Beijing to keep producing across China, its largest market where sales have been flagging.

The German automaker and SAIC will sell the plant to Shanghai Motor Vehicle Inspection Certification SMVIC, a subsidiary of stateowned Shanghai…