US Senate panel expands probe into BMW use of parts from banned Chinese supplier (updated)

Lear

10/06/2024 16:03

(Adds more details, no immediate BMW comment, paragraphs 4-10)
    By David Shepardson
       WASHINGTON, June 10 (Reuters) - The chair of the Senate
Finance Committee said on Monday he was expanding its probe into
German automaker BMW's  BMWG.DE  use of electronic components
from a banned Chinese supplier.
    Last month, Senator Ron Wyden said after a two-year staff
investigation he had learned that BMW had imported at least
8,000 Mini Cooper vehicles into the United States 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. 
    On Monday Wyden, in a new letter to BMW North America CEO
Sebastian Mackensen, asked if the automaker has completed its
examination of its supply chain to determine whether other
products it imported contained parts from Chinese supplier 
Sichuan Jingweida Technology Group (JWD).
    "Is BMW certain that it is not currently importing vehicles
containing components produced by JWD?" the letter said, asking
for answers by June 21. Wyden also wants any actions taken by
BMW "to address any cars or spare parts containing JWD parts
improperly imported by BMW" after December 2023.
    BMW Group, which did not immediately respond to a request
for comment Monday, said last month it had "taken steps to halt
the importation of affected products."
    The company will be taking 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.
    The report found Bourns Inc, a California-based auto
supplier, had sourced components from JWD, which was added to
the UFLPA Entity List in December.
    Bourns provided JWD parts to Lear Corp  LEA.N , a direct
supplier for BMW and other automakers. 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.
    Lear said last month 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.

 (Reporting by David Shepardson, Editing by William Maclean)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))