VW Reviewing Xinjiang Presence After New Forced-Labor Claim (2)

Volkswagen AG is reviewing its activities in Xinjiang following allegations that new evidence had emerged of human-rights abuses at a project in the western Chinese region.

The German carmaker said it’s now holding talks with joint-venture partner SAIC Motor Corp. after Handelsblatt reported that forced labor may have been used during the construction of a test track in Turpan, located in a region where the government has been accused of forcing Uyghurs and other Muslim minorities to work.

“Various scenarios are currently being intensively examined,” the company said Wednesday in a statement.

The report, published late Tuesday, cited research by ...