WASHINGTON, May 20 (Reuters) - German automaker BMW
imported at least 8,000 Mini Cooper vehicles into the
United States with electronic components from a banned Chinese
supplier, a U.S. Senate report released on Monday said.
A report by Senate Finance Committee Chairman Ron Wyden's
staff said BMW imported 8,000 Mini Coopers with parts from a
Chinese supplier banned under a 2021 law and that BMW continued
to import products with the banned parts until at least April.
BMW Group said in an email it had "taken steps to halt the
importation of affected products."
The company will be conducting a service action to replace
the specific parts, adding it "has strict standards and policies
regarding employment practices, human rights, and working
conditions, which all our direct suppliers must follow."
Congress in 2021 passed the Uyghur Forced Labor Prevention
Act (UFLPA) law to strengthen enforcement of laws to prevent the
import of goods from China's Xinjiang region believed to have
been produced with forced labor by members of the country's
Uyghur minority group. China denies the allegations.
"Automakers' self-policing is clearly not doing the job,"
Wyden said, urging the Customs and Border Protection agency to
"take a number of specific steps to supercharge enforcement and
crack down on companies that fuel the shameful use of forced
labor in China." Customs and Border Protection did not
immediately comment.
The report found that Bourns Inc, a California-based auto
supplier, had sourced components from Sichuan Jingweida
Technology Group (JWD). That Chinese company was added to the
UFLPA Entity List in December, which means its products are
presumed to be made with forced labor.
Bourns provided JWD parts to Lear Corp ( LEA ), a direct
supplier for BMW and Jaguar Land Rover. Bourns notified Lear in
January that electronic components known as LAN transformers had
been produced by JWD and were prohibited in U.S. imported
vehicles.
On Jan. 11, Lear sent letters to BMW, Jaguar Land Rover,
Volvo and Volkswagen AG informing them of
the banned components, the report said. Lear confirmed it
promptly notified customers "of products containing these
components and worked with our supplier to expeditiously
re-source the manufacture of these components to another
sub-supplier."
JAGUAR LAND ROVER IMPORTS
The report said Jaguar Land Rover imported spare parts with
JWD components after December, adding that the automaker
quarantined all existing inventory containing the JWD component
globally for destruction. Jaguar Land Rover said as soon as it
learned of the issue it "immediately stopped all shipments of
the two affected aftermarket service parts."
The company added it "takes human rights and forced labor
issues seriously and has an active ongoing program of human
rights protection and anti-slavery measures."
The report said BMW "appears to have stopped (imports) only
after the committee repeatedly asked detailed questions to Lear
and Lear's OEM customers, including BMW, about their
relationship with JWD."
Lear said it takes the issues raised seriously and shares
"the committee's desire to combat forced labor," and noted it
does not have a direct relationship with JWD.
In February, Volkswagen confirmed that several thousand
Porsche, Bentleys and Audi vehicles were held at U.S. ports
because a Chinese subcomponent breached anti-forced labor laws.
The Senate report said the Volkswagen vehicles contained the
JWD electronic parts and that the automaker voluntarily
disclosed the issue to Customs and Border Protection.
VW said on Monday it has since replaced the parts in all
vehicles held at U.S. ports and "takes allegations of human
rights violations very seriously and is committed to preventing
the use of forced labor in our supply chain."
Volvo Cars received LAN transformers for a new car program
not yet in production and did not use any in its vehicles, the
report added.