Volkswagen Stock: Strategic Exit from Xinjiang Amid Market Shift

Volkswagen AG has made a pivotal strategic move by selling its controversial production facility in China's Xinjiang region to SMVIC, a state-owned enterprise specializing in used vehicles. This divestment includes test tracks in Turpan and Anting, marking a significant shift in the company's Chinese operations. The decision comes at a challenging time for the automotive giant, reflected in its current stock price of approximately 80 euros, substantially below its 52-week high of 128.60 euros. The Urumqi facility, which had ceased vehicle production in 2019, represents a strategic realignment of Volkswagen's Chinese market presence.

Future Growth Strategy

The German automaker is reinforcing its "In China, for China" approach by extending its partnership with SAIC until 2040. This collaboration includes an ambitious product offensive starting in 2026, featuring 18 new models. Volkswagen aims to capture a 15% market share by 2030, with a particular emphasis on electric vehicle production. This comprehensive repositioning strategy demonstrates the company's commitment to strengthening its foothold in the crucial Chinese market through focused expansion and technological advancement.