BMW, Jaguar Land Rover, and Volkswagen have been found to have purchased parts from a Chinese company sanctioned for using forced labor, according to a Senate inquiry. The investigation revealed that BMW imported over 8,000 MINI vehicles containing parts from the sanctioned Chinese supplier, JWD. Jaguar Land Rover also imported replacement parts with components made by JWD, even after being informed of the issue. Volkswagen disclosed to U.S. border authorities that a shipment of its vehicles contained parts from JWD.
The parts were sourced through two contractors, Bourns Inc. and Lear Corp., with Lear Corp. being a direct supplier for BMW and Jaguar Land Rover. Senator Ron Wyden criticized automakers for not effectively monitoring their supply chains for forced labor. He called for Customs and Border Protection to enhance enforcement.
Jaguar Land Rover stated that the problematic subcomponent was used in a previous generation of technology and is not present in current vehicles. BMW Group announced that it has halted the importation of affected products and will conduct a service action for affected vehicles. Both companies emphasized their commitment to human rights and preventing forced labor. Volkswagen also pledged to prevent forced labor in its supply chain.
Lear Corp. promptly notified its customers of products containing components from JWD and worked to transition manufacturing to another sub-supplier. In 2021, the U.S. passed the Uyghur Forced Labor Prevention Act, prohibiting products made with forced labor from Xinjiang, where the Uyghur population faces persecution. The U.S. government has labeled this persecution as genocide, while China maintains that its actions are counterterrorism efforts.
In Xinjiang, China operates employment programs that it claims enhance job skills and provide better job opportunities, but human rights advocates argue that participation can be involuntary. U.S. lawmakers have urged strict enforcement of the 2021 law and criticized automakers for failing to ensure compliance in their supply chains.
