US authorities detain high-end European cars for a part made in China with forced labor
US authorities have detained a significant number of vehicles from renowned German luxury car brands Audi and Porsche, currently en route to US ports, due to customs issues relating to a Chinese-manufactured part.
These two brands, both owned by German automaker Volkswagen (VW), incorporate components supplied by VW suppliers in western China, including the controversial Xinjiang province. This region has garnered international attention due to China’s treatment of the Uyghur Muslim minority, sparking widespread concern for human rights.
According to a spokesperson for the group, “We are currently addressing a delay in customs regarding the shipment of specific Volkswagen Group vehicle models from US ports to dealerships.”
The spokesperson added, “Vehicle deliveries are ongoing, but unfortunately there might be some delays. This is primarily caused by a minor electronic component within a larger control unit, which will be promptly replaced as soon as the necessary parts are available.”
A report in the German business newspaper Handelsblatt states that around 13,000 new Audi, Porsche, and Bentley cars, all subsidiaries of Volkswagen, are affected by this issue.
As noted by the Financial Times, the component in question originates from western China and may violate US regulations against forced labor, thus prohibiting its usage in the United States.
Surprisingly, Volkswagen claims ignorance
However, Volkswagen asserts that it had no prior knowledge of the part’s origin as it was incorporated by a supplier into a larger component. The company became aware of the issue only after receiving a warning from the supplier, prompting them to promptly inform US authorities.
“We are diligently investigating the matter and implementing appropriate measures,” stated the Volkswagen spokesperson. They added, “This may potentially include severing ties with the supplier if our investigations confirm any serious violations.”
Volkswagen has faced longstanding criticism regarding its manufacturing operations in western China. In Xinjiang, the company has established a delivery plant and test track in partnership with Chinese company Saic.
On Wednesday, Volkswagen announced plans to engage in discussions with Saic “regarding the future direction of business activities in Xinjiang province.” The company stated, “We are currently thoroughly evaluating various scenarios.”
In a related development, German chemical giant Basf recently announced its intent to divest shares in its joint ventures located in Korla, China, at the heart of the Xinjiang region. This decision followed media reports associating its Chinese partner firms with potential human rights violations.
For years, Uyghur activists and human rights organizations have been reporting that hundreds of thousands of individuals in Xinjiang are being forcefully sent to re-education camps, where they may experience torture and forced labor. The Chinese government denies these allegations.