Volkswagen Shares Rise After China Factory Audit

Volkswagen shares saw a boost in value on Wednesday following the completion of an audit conducted at a jointly owned factory site in China. The review, which was commissioned by Volkswagen and carried out by a Shenzhen law firm and a German human-rights consultancy, found no evidence of human-rights violations. The audit involved document checks, staff interviews, and inspections at a plant co-owned by Volkswagen and SAIC Motor in Xinjiang. Importantly, the investigation revealed that the factory complied with United Nations standards regarding forced labor and child labor regulations.

As of 1121 GMT, shares in the German car company had risen by 3.2% to EUR112.02. According to analysts at Citi, the audit findings could provide opportunities for investors who were previously unable to invest in Volkswagen. In a note, the analysts stated that they believed this new development had the potential to reverse a significant portion of the underperformance of Volkswagen since July 2022.

Overall, the results of the audit have been positive for Volkswagen, providing reassurance to investors about the company's commitment to human rights compliance in its overseas operations.

David Sachs