Reuters reported that Volkswagen is closing its controversial factory in China's Xinjiang region as the company and its Chinese partner agreed to sell the assets to a buyer owned by the Shanghai government.
The value of the transaction has yet to be discovered.
The decision to leave the plant amid stiff competition and sluggish demand in China hampered Volkswagen's sales growth.
European car companies face the effects of a trade war between Beijing and the EU as the EU imposes anti-subsidy tariffs on Chinese electric cars.
