German automaker Bayerische Motoren Werke AG (OTC:BMWYY) BMW Group reportedly imported over 8,000 Mini Cooper vehicles into the U.S. containing electronic components from a banned Chinese supplier.
Senate Finance Committee Chairman Ron Wyden’s staff unveiled that BMW continued importing vehicles with the banned components until at least April, according to a report from Reuters.
The report noted that BMW Group responded, stating they have ceased importing affected products and will replace the specific parts through a service action.
The Uyghur Forced Labor Prevention Act (UFLPA) law, passed in 2021, aims to curb the import of goods produced with forced labor from China’s Xinjiang region.
Wyden criticized automakers’ self-policing, urging Customs and Border Protection to enhance enforcement to combat forced labor.
The report highlighted Bourns Inc. sourcing components from Sichuan Jingweida Technology Group (JWD), listed under UFLPA Entity List for suspected forced labor.
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Lear Corp (NYSE:LEA) informed BMW, Jaguar Land Rover, Volvo (OTC:VLVLY), and Volkswagen AG (OTC:VWAGY) about banned components, emphasizing prompt action to mitigate the issue.
Volkswagen confirmed holding several thousand vehicles at U.S. ports due to Chinese subcomponents breaching anti-forced labor laws. The report shed light on BMW’s delayed action, which ceased only after detailed inquiries by the committee.
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Price Action: BMWYY shares are trading lower by 0.40% at $34.31 at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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