BMW faces SEC investigation
- BMW imported at least 8,000 Mini Coopers into the United States using parts from banned Chinese suppliers, according to a US Senate report.
- A report from the Senate Finance Committee said BMW was using parts from banned suppliers until at least April.
- BMW announced that it would stop importing the affected products and replace certain parts.
German automaker BMW has imported at least 8,000 Mini Cooper cars into the United States with electronic components from banned Chinese suppliers, a US Senate report released on Monday revealed.
BMW imported 8,000 Mini Coopers with parts from Chinese suppliers prohibited under 2021 law until at least April, according to a report from the staff of Senate Finance Committee Chairman Ron Wyden. It is said that the company continued to import products equipped with parts.
“We have taken steps to suspend imports of the affected products,” the BMW Group said in an email.
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The company will carry out service activities to replace certain parts, it said, adding: “We have strict standards and policies regarding employment practices, human rights and working conditions, which all direct suppliers must follow.” .
Visitors walk past the BMW logo at the Beijing International Automobile Exhibition (AutoChina 2024) on April 25, 2024 in Beijing, China. BMW imported at least 8,000 Mini Cooper cars into the United States that were equipped with banned electronic components from China. (Reuters/Wang Tingju/File photo/Reuters photo)
In 2021, Congress passed the Uyghur Forced Labor Prevention Act (UFLPA), which strengthens enforcement of laws that block the import of goods from China’s Xinjiang region that are allegedly produced using forced labor by the Uyghur minority. China denies the allegations.
“Automaker self-regulation is clearly not working,” Wyden said, adding that he is calling on Customs and Border Protection to “step up enforcement and crack down on companies that facilitate the shameful use of forced labor in China.” We called on them to take a number of concrete steps.” ” Customs and Border Protection did not immediately comment.
The report revealed that California-based auto supplier Bourns Inc. was sourcing parts from Sichuan Jingweida Technology Group (JWD). The Chinese company was added to the UFLPA Entity List in December, meaning its products are presumed to be made with forced labor.
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Bourns provided JWD parts to Lear Corp, a direct supplier to BMW and Jaguar Land Rover. Mr. Bones informed Mr. Lear in January that an electronic component known as a LAN transformer is manufactured by JWD and is prohibited in imported U.S. vehicles.
On January 11, Lear sent letters to BMW, Jaguar Land Rover, Volvo and Volkswagen AG notifying them of the prohibited parts, the report said. Lear confirmed that the company “promptly notified customers of products containing these components and worked with our suppliers to quickly subcontract the manufacturing of these components to another sub-supplier.”
The report said Jaguar Land Rover has imported spare parts containing JWD components since December, adding that the automaker has quarantined all existing stock containing JWD components worldwide for destruction. Jaguar Land Rover said that upon learning of the issue, it “immediately suspended all shipments of the two affected aftermarket service parts.”
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The company added: “We take human rights and forced labor issues seriously and have an active ongoing program to protect human rights and combat slavery.”
The report said BMW “appears to have stopped (imports) only after the Commission repeatedly and in-depth questioned Lear and Lear’s OEM customers, including BMW, about their relationship with JWD.”
Lear said he takes the issues raised seriously and shares “the commission’s desire to combat forced labor,” noting that the commission has no direct relationship with JWD.
Volkswagen admitted in February that thousands of Porsche, Bentley and Audi vehicles were being held at U.S. ports because its Chinese subsidiary had violated anti-forced labor laws. The Volkswagen vehicle contained electronic components from JWD, according to the Senate report.
Volvo Cars received LAN transformers for a new car program that is not yet in production, but has not used any in its own vehicles, the report added.
