A Senate inquiry has found that BMW, Jaguar Land Rover, and Volkswagen have purchased parts from a Chinese company that was sanctioned in 2021 for using forced labor. The investigation, conducted by the Senate Finance Committee over the past two years, revealed that BMW imported at least 8,000 MINI vehicles containing parts produced by the sanctioned Chinese supplier, JWD. Jaguar Land Rover also imported replacement parts with components made by JWD, even after being informed of the problematic product in its supply chain. Volkswagen, on the other hand, disclosed to U.S. border authorities that a shipment of its vehicles contained parts made by JWD through two contractors, Bourns Inc. and Lear Corp.
Sen. Ron Wyden, a Democrat from Oregon who chairs the committee, criticized automakers for not adequately policing their supply chains for forced labor. He mentioned that automakers are turning a blind eye to the issue and then claiming ignorance about the presence of forced labor in their supply chains. Jaguar Land Rover responded to the Senate report by stating that the problematic subcomponent mentioned in the report was used in a previous generation of technology and not in current vehicles for sale. The company took immediate action to stop shipment of the affected parts and quarantine existing inventory for destruction. BMW Group also stated that they have halted the importation of affected products and will conduct a service action with customer and dealer notification for affected motor vehicles.
In 2021, U.S. lawmakers passed the Uyghur Forced Labor Prevention Act, which prohibits the entry of products made with forced labor in Xinjiang, where the Uyghur Muslim ethnic group has faced persecution for their religious and cultural beliefs. The U.S. government has labeled this persecution as genocide, while Beijing denies such accusations and claims its efforts are focused on countering terrorism. In Xinjiang, China operates employment programs to improve job skills and connect the local workforce with better-paying jobs, but human rights advocates argue that participation in these programs can be involuntary. Lawmakers in the United States are calling for stricter enforcement of the 2021 law and criticizing automakers for not thoroughly examining their supply chains to ensure compliance.
Both BMW and Jaguar Land Rover emphasized their commitment to protecting human rights and preventing forced labor. BMW Group stated that they have taken steps to address the issue and will notify customers and dealers about the affected motor vehicles. Jaguar Land Rover clarified that the subcomponent mentioned in the report is not used in current vehicles for sale and that they have taken immediate action to quarantine and destroy existing inventory containing the problematic component. The automakers’ responses come in the wake of the Senate report revealing their use of parts from a Chinese supplier linked to forced labor practices. The U.S. government and lawmakers are urging stricter enforcement of laws prohibiting products made with forced labor, especially in regions like Xinjiang where human rights violations have been widely documented.
