Thousands of Porsche, Bentley and Audi cars have been blocked from entering the US amid fears they contain a component made using forced labor in China.
Customs officials were notified by Volkswagen, which owns the three brands, that the cars could contain an electronic component made in ‘western China’.
Laws ban the import of items made using forced labor in a province of western China where Uyghur Muslims are forced to work in labor camps.
The cars may be held until late March as the automaker scrambles to replace the part, according to the Financial Times, which first reported on the issue.
It is not clear if subsequent shipments will be impounded or there will be a shortage of VW vehicles in the US.
US officials have halted the import of thousands of Porsche, Bentley and Audi cars over concerns a part was made in a forced labor camp in western China. Porsche cars destined for export stand at Bremerhaven port in Germany
Detainees listening to speeches in a camp in Lop County, Xinjiang, China in April 2017. Uyghur Muslims are native to the region and known to have been subjected to forced labor
VW spokesperson Dirk Ameer said for individual customers the delay could last until the end of March.
Forced labor is a term that describes when people are required to work against their will and considered a form of modern slavery.
The impounding of the VW cars – assembled in Germany – comes as the Biden administration is ramping up scrutiny around US trade with China.
The FT reported that it is not known whether the part in question definitely originated from the Xinjiang province, and VW said they were investigating.
Products that have been made using forced labor in Xinjiang are illegal to import under the Uyghur Forced Labor Prevention Act of 2021.
About a thousand Porsches, several hundred Bentleys and several thousand Audis have been affected. Based on typical retail prices, this would amount to around $300 million worth of cars.
Volkswagen said in a statement that it was investigating the claim and would terminate its relationship with the supplier in question if necessary.
It added that it ‘takes allegations of infringements of human rights very seriously’.
Customers expecting delivery of their cars have been alerted, and told the delay is due to ‘a small electronic component that is a part of a larger control unit, which will be replaced.’
Uyghur Muslims are an ethnic group native to Xinjiang, known to have been subjected by the People’s Republic of China (PRC) to forced labor in the region. Beijing has always denied such abuses.
Volkswagen became aware of the issues around the part in mid-January, according to the report. It then notified US authorities, which then blocked the import.
Issues around VW’s Chinese supply chain and its connections to Xinjiang have been in the spotlight recently.
Xinjiang researcher Adrian Zenz shared an image of workers in drill uniforms, which he claims were involved in the making of a VW test track in China
Just this week, German newspaper Handelsblatt reported claims that forced labor had been used in the making of a VW test track in Turpan, Xinjiang.
Xinjiang researcher Adrian Zenz coordinated with the publication to report on a photo which he said served as evidence of VW’s involvement with forced labor.
‘Chinese media websites… published photos showing Uyghur laborers employed by the project in their military drill uniforms together with the characteristic red flowers that are a typical feature of the most coercive labor transfers,’ he wrote on X.
‘The state uses military drilling to boost the discipline and obedience of transferred Uyghur workers,’ he added.
The test track is operated by a subsidiary of a joint venture between Volkswagen and Chinese state-owned car maker SAIC Motor.
‘Volkswagen is currently in talks with the non-controlled joint venture SAIC-Volkswagen about the future direction of business activities in Xinjiang province. Different scenarios are being considered intensively,’ a spokesperson said.
It come less than a week after German chemicals giant BASF said it would sell its stakes in two joint ventures in the Xinjiang region, also citing allegations of human rights violations.
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