BMW, VW and JLR have all been connected to forced hard labor systems in China through a congressional investigation, which found that all automakers were using Chinese-made parts that are on the U. S. government’s prohibited list.
All three have sold cars in the U. S. that use a transformative LAN communication component produced through Sichuan Jingweida Technology Group, also known as JWD, a company that claims to have used hard and forced labor in its production process.
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Although none of the automakers purchased the parts directly from JWD, but instead purchased them through a Western company, Lear Corp (which claims to have purchased them from a middleman), two of the brands continued to use the component even after being informed in writing that their source chains contained prohibited products.
While VW responded by making adjustments to its origin chain and also informed the customs government that the affected cars were arriving, opting to upgrade the affected parts at a U. S. port, it was not possible to upgrade the affected parts at a U. S. port. In the U. S. , BMW was less interested in taking action, the committee concluded. he ignored the warnings and continued to use the banned parts, uploading 8,000 Minis stocked with smuggled parts after the complaint.
JWD is founded in Xinjiang in the far west of China, a region known for its forced labor practices. The Uyghur Forced Labor Prevention Act prevents the importation of products manufactured in Xinjiang into the United States unless the importer can prove that the forced labor was not used in production.
The congressional investigative report noted that many automakers continue to use Chinese-made portions and rely on “limited questionnaires, self-declarations, and audits” from suppliers to determine whether their products comply with U. S. laws. He cautioned that those strategies may not be trusted. Give a genuine answer, especially since there can be a dozen tiers of suppliers between the car manufacturer and the component.
The investigation also found that VW has its own production facility in Xingjiang and claims that while the automaker claims that an audit conducted through two Shenzhen-based lawyers uncovered no evidence of forced labor, it never provided a copy of the audit.
In a statement to the New York Times, Senate Finance Committee Chairman Ron Wyden of Oregon said, “Automakers bury their heads in the sand and then promise they won’t find any forced hard work in their home chains. “
He added: “Somehow, the Finance Committee’s oversight staff discovered what multi-billion dollar corporations couldn’t: that BMW was uploading cars, Jaguar Land Rover was uploading parts, and VW AG was making cars that included parts made through a supplier. Prohibited for Uyghur use. Forced labor through car brands obviously doesn’t work. “