Senate Report Exposes BMW Imported Numerous Mini Coopers to the US with Banned Parts from Chinese Suppliers

May 27, 2024 01:21 AM EDT

RED MINI COOPER — (Photo : AI IMAGE/DABBIE DAVIS)

A U.S. Senate report issued on Monday, BMW imported 8,000 Mini Cooper vehicles into the United States with components sourced from a prohibited Chinese supplier. These components were discovered to have been received by BMW, JLR, Volkswagen, and Volvo.

Mini Coopers with Banned Parts from Chinese Supplier

In an email statement, BMW Group mentioned that they have implemented measures to stop importing the affected units. According to a report from the staff of Senate Finance Committee chair Ron Wyden, BMW imported 8,000 cars with parts from a supplier prohibited by a 2021 law. Moreover, BMW continued to import goods containing these parts until at least April.

Congress passed the Uyghur Forced Labor Prevention Act (UFLPA) in 2021. This was an attempt to strengthen enforcement of laws meant to forbid the importation of items from China's Xinjiang area. Such items are believed to have been produced using forced labor from the Uyghur minority.

According to a Fox News article, the business intends to replace the discovered parts through a service action, stressing that all key suppliers are required to comply with their strict standards and regulations regarding human rights, employment practices, and working conditions.

Senator Wyden criticized automakers' self-regulation effectiveness, advocating for Customs and Border Protection to enhance enforcement and target companies supporting forced labor in China. Customs and Border Protection refrained from immediate comment.

The investigation revealed that Bourns Inc, an auto supplier based in California, purchased parts from Sichuan Jingweida Technology Group (JWD), a Chinese company included in the UFLPA Entity List in December, indicating its products are likely produced using forced labor.

It's Not Only BMW

As reported by CarBuzz, three additional car manufacturers were identified as recipients of similar components for their vehicles. These parts were restricted due to their origin from China's Xinjiang region, where the government allegedly permits forced labor.

The investigation revealed that Bourns, Inc., a California-based automotive supplier, procured these parts from Sichuan Jingweida Technology Group Co., Ltd. (JWD), a company listed on the UFLPA Entity List in December 2023.

Subsequently, these components were supplied to Lear Corp., a direct supplier to BMW and Jaguar Land Rover (JLR). Records indicate that Bourns informed Lear about the parts on January 3rd of this year, with the automakers becoming aware of the issue by January 11th.

The report states that BMW and JLR initially refuted the acquisition of banned components in April, with only one company acknowledging possession of the parts after further inquiry. Volkswagen had previously disclosed the potential presence of prohibited parts in vehicles shipped to the US, while Volvo received the components but had not yet utilized them in production.

The components obtained were LAN transformers, essential for linking vehicles to various networks, enabling communication between systems such as radar, vehicle-to-everything, and advanced driver systems with servers and the external environment. Although there isn't definitive confirmation that these parts were manufactured using forced labor, considering the historical context of the region, it is extensively presumed, leading to their prohibition.

As reported by Reuters, the Senate document indicated that Volkswagen cars were equipped with electronic components from JWD, and the car manufacturer proactively informed Customs and Border Protection about this matter.

Volkswagen stated on Monday that they have replaced the parts in all vehicles stored at U.S. ports and emphasized their serious approach toward allegations of human rights abuses, affirming their dedication to preventing forced labor in their supply chain.

Additionally, Volvo Cars obtained LAN transformers for an upcoming vehicle program that has not entered production yet and did not incorporate any of these components into their vehicles, as mentioned in the report.