German carmaker Volkswagen plans to sell its Xinjiang operations

German auto giant Volkswagen Group announced today that it will sell its business in Xinjiang, China. According to AFP, a Volkswagen spokesman said in a press release that Volkswagen will sell its factory in Urumqi, the capital of Xinjiang, and its test track in Turpan to a Chinese company. The spokesman said: "As part of a strategic adjustment, the site has been sold by the joint venture for economic reasons." Volkswagen has lost ground in China, its most important market, and although sales increased slightly last year, the growth rate has slowed. Volkswagen has also fallen behind local competitors in China, losing the sales champion throne to BYD. Volkswagen's factory in Urumqi was put into operation in 2013, and it holds a stake through its partner China's Shanghai Automotive Industry Corporation (SAIC). Volkswagen said today that its business will be sold to Shanghai Motor Vehicle Inspection and Certification Technology Research Center Co., Ltd.