In a significant development highlighting concerns over forced labor practices in China’s Xinjiang region, U.S. lawmakers have raised their voices, urging Volkswagen to halt its operations there. Representatives Mike Gallagher and Raja Krishnamoorthi, respectively a Republican and the top Democrat on the House Committee on China, penned a letter to Volkswagen CEO Oliver Blume expressing deep concern over recent reports.
Thousands of vehicles from Volkswagen Group were held at U.S. ports due to parts manufactured in China that were allegedly produced using forced labor. The lawmakers emphasized their apprehension about the situation, particularly the use of parts made under such conditions in VW Group vehicles.
The Financial Times reported last week that approximately 1,000 Porsche vehicles, several hundred Bentleys, and several thousand Audi vehicles were among those held at U.S. ports. This action was taken because a Chinese subcomponent used in these vehicles breached anti-forced labor laws.
Volkswagen responded to the situation, stating that they promptly notified authorities upon learning about the issue from their supplier. The company assured that it took immediate action by holding the affected vehicles in port and initiating the replacement of the non-compliant components.
This recent development adds to existing scrutiny surrounding Volkswagen’s presence in Xinjiang. Last week, the company revealed it was engaged in discussions with its joint venture partner in China concerning their operations in the region. A German newspaper had reported evidence of Volkswagen’s involvement in forced labor through a subsidiary operating a test track in Turpan, Xinjiang.
The lawmakers’ letter underscored the gravity of the situation, citing evidence of forced labor within Volkswagen’s supply chain and the company’s continued operations in Xinjiang. They called upon Volkswagen to immediately cease all operations in the region in light of these concerns.
This issue is not isolated to Volkswagen alone. It contributes to broader pressure on Germany’s largest corporations to reassess their ties with China, particularly in Xinjiang, where numerous rights groups have documented widespread human rights abuses, including forced labor in detention camps. Despite Beijing’s denial of such abuses, international scrutiny continues to mount.
Volkswagen reiterated its commitment to investigating allegations of human rights violations seriously. The company acknowledged that any confirmed serious violation could lead to the termination of its supplier relationships. The outcome of these investigations could potentially impact Volkswagen’s operations and its broader stance on human rights issues within its supply chain.
As the automotive industry navigates complex global trade dynamics, the spotlight on companies like Volkswagen underscores the growing importance of ethical sourcing practices and corporate responsibility in today’s interconnected world.