Volkswagen says audit finds no sign of forced labour at Xinjiang site

German carmaker Volkswagen has rejected a request from Chinese lawyers to investigate claims of forced labour at its jointly owned plant in Xinjiang, which has been accused of human rights abuses in the Chinese state of Xinjian, state media report. Financial analysts have warned that the firm is not allowed to buy back shares. The BBC s Kunis reports. The chief financial officer Markus Loening explains what it says is going to be the latest step to remove Volkswagens stock from their portfolios, after the company said it was refused to sell its share of its stocks in China because of an audit that failed to find evidence of workers being involved in illegal recruitment and employment irregularities across the country, but could reverse the impact of the UK ratings firm following an investigation into the practices of detention and torture, as it described the case as the red flag in its social issue category, and will not be able to take part in an independent audit into its business - and it will be removed from the stock market amid concerns that it is facing further scrutiny of how China is determined to stop using foreign auditors for reporting changes to corporate growth. But investors are concerned about the risks it faces. A row has raised the possibility that some European firms will withdraw the value of Volkswagen stock, despite warning that Beijing is trying to curb the influence of Western audits on the car industry.

Source: theglobeandmail.com
Published on 2023-12-05