The company’s board pledged to investors that it would pay closer attention to how the company managed workers.
Hefei has led the country in making electric vehicles and other tech products, but it still has not escaped a nationwide housing crisis.
Volkswagen is shifting more operations to China, tapping the country’s electric vehicle capacity and building factories.
The automaker said the move would further its electric-vehicle goals. It may also defuse tensions with the U.A.W. ahead of contract talks next year.