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BMW, Jaguar Land Rover and Volkswagen purchased auto parts originating from a supplier in China that has been flagged by the US for forced labor ties in Xinjiang, a US congressional investigation has found.
According to the Senate finance committee investigation, BMW and Jaguar Land Rover continued sourcing parts made by the Chinese supplier into the US even after they were informed about the banned products in their supply chain.
BMW shipped at least 8,000 Mini vehicles containing the auto part to the US after being informed, in writing, of the ties to forced labor.
Rob Wyden, Oregon senator and chairman of the Senate finance committee, initiated the investigation in 2022.
In 2023, the Uyghur Forced Labor Prevention Act was enacted in the US, prohibiting all products from the Xinjiang region of China from being imported to the US until importers can prove that the products do not use forced labor.
“Automakers are sticking their heads in the sand and then swearing they can’t find any forced labor in their supply chains,” Wyden told the New York Times in a statement.
“Somehow, the finance committee’s oversight staff uncovered what multibillion-dollar companies apparently could not: that BMW imported cars, Jaguar Land Rover imported parts, and VW AG manufactured cars that all included components made by a supplier banned for using Uyghur forced labor.”
The auto part sourced from Xinjiang is known as a Lan transformer, which enables a vehicle’s electronic parts to communicate with one another. The part was not purchased directly from the Chinese supplier, but included as part of an electronic unit bought from Lear Corp, an automotive electronic system supplier.
Lear claimed the part was bought through another supplier, and that it informed its customers when the company learned of the part’s sourcing connection to the forced labor list. The company informed BMW, Jaguar Land Rover and Volkswagen.
Volkswagen took corrective actions and arranged to replace the part in US ports, while BMW continued to import that part until at least April 2024, until the Senate committee repeatedly questioned BMW about the part. BMW said the company had taken all steps to resolve the vehicle part issue.
“The BMW Group has strict standards and policies regarding employment practices, human rights, and working conditions, which all our direct suppliers must follow,” stated BMW.
Jaguar Land Rover also continued importing the part until April 2024. It did not comment on the inquiry.
