Exclusive-VW to exit Xinjiang operation; will sell plant, test tracks, sources say

Volkswagen will exit its controversial plant in China's Xinjiang region after it and its Chinese partner agreed to sell the asset to a Shanghai government-owned buyer, two people familiar with the matter said on Wednesday. The German automaker and SAIC will sell the plant to Shanghai Motor Vehicle Inspection Certification (SMVIC), a subsidiary of state-owned Shanghai Lingang Development Group, the sources said. The decision to free itself from the plant comes as Volkswagen is battling to boost flagging sales in China amid intense competition and sluggish demand.