Car manufacturers like BMW According to an investigation by the US Congress, Volkswagen and Volkswagen installed components from a Chinese supplier whose use is prohibited due to forced labor. A report from the Senate Finance Committee on Monday said BMW manufactured and imported vehicles that were “suspected to have been made using forced labor.” The British car company Jaguar Land Rover also imported car parts with such dubious origins.
According to the report, BMW is said to have imported at least 8,000 Mini Coopers into the United States containing electronic components from the sanctioned Chinese supplier. Specifically, according to the report, it is about components from the Sichuan Jingweida Technology Group Co. These parts have been banned since a 2021 law. BMW continued to import products with the banned parts until at least April. The BMW Group said in an email that it had “taken steps to stop the import of the affected products.” The company will replace the affected parts.
The US Congress passed the so-called Uyghur Forced Labor Prevention Act (UFLPA) in 2021 to prevent the import of goods from the Chinese region of Xinjiang. Western governments assume that members of the Uighur minority use forced labor to produce products there. China denies the allegations.
The US Congress report calls for further action to comply with the law. The car companies’ internal self-controls were “clearly not doing their job,” said Senate Finance Committee Chairman Ron Wyden at the end of the two-year investigation into import practices. He called on US customs authorities to take decisive action against companies “that promote the shameless use of forced labor in China”.
US law impacts supply chains
The complexity of the process is shown by the fact that the California-based automotive supplier Bourns purchased components from the Sichuan Jingweida Technology Group (JWD). This Chinese company was placed on the UFLPA suspect list in December. Bourns supplied JWD parts to Lear, which in turn was a direct supplier to BMW and Jaguar Land Rover is. On January 11, Lear sent letters to BMW, Jaguar Land Rover, and Volvo Volkswagento inform them about the banned components, the report said.
However, BMW apparently only stopped the imports after the committee repeatedly asked Lear and its suppliers, including BMW, detailed questions about their relationship with JWD.
Already in February, Volkswagen confirmed that several thousand vehicles from the brands Porsche, Bentley and Audi were held in U.S. ports because a Chinese supplier violated anti-forced labor laws.