OAN’s James Myers
1:03 PM – Monday, May 20, 2024
Several major automakers relied on forced labor in China for some purchased parts, a Senate Finance Committee investigation found Monday.
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BMW, Jaguar Land Rover and Volkswagen have purchased parts that the US government has linked to forced labor camps in western China’s Xinjiang region, home to the Muslim Uyghur minority.
The two-year investigation also found that BMW and Jaguar Land Rover continued to import parts that had been flagged as recently as last month, even after being informed of the forced labor charges, the report said.
“Automakers are sticking their necks out and saying there is no forced labor in their supply chains,” Senate Finance Chairman Ron Wyden (D-Ore.) said in a statement. “Somehow, the Treasury Board’s oversight staff revealed what multibillion-dollar companies could not: imported cars from BMW, imported parts from Jaguar Land Rover, cars manufactured by VW AG. All of the products contained parts manufactured by suppliers that were banned due to forced labor of Uyghurs.
“Automobile manufacturers’ self-regulation is clearly not working,” he continued. “I am calling on Customs and Border Protection to step up enforcement and take a number of concrete steps to crack down on companies that facilitate the shameful use of forced labor in China.”
The report further alleges that BMW imported nearly 8,000 light vehicles containing the warning parts into the US after the Chinese manufacturer was added to the forced labour list in December.
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. That is, the product is estimated.
Bourns provided JWD parts to Lear Corp, a direct supplier to BMW and Jaguar Land Rover. Mr. Barnes then informed Mr. Lear in January that an electronic component known as a LAN transformer was manufactured by JWD and was prohibited in imported U.S. vehicles.
Meanwhile, on January 11ththAccording to reports, Lear has sent letters to BMW, Jaguar Land Rover, Volvo and Volkswagen AG informing them of the banned parts. Lear confirmed that it “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 company also added that it “takes human rights and forced labor issues seriously and has 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,” adding that the commission has no direct relationship with JWD.
Volkswagen admitted in February that thousands of Audi, Bentley and Porsche cars were being held at U.S. ports because its Chinese subsidiary had violated anti-forced labor laws.
In addition, 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.
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