Thousands of high-end Volkswagen Group models are being fixed before being released to American customers.
After rumors of certain Volkswagen Group models being held up at U.S. ports of entry swirled in recent days, it’s finally been confirmed what the hubbub is all about: A certain electronic component onboard a number of Volkswagen, Porsche, Audi, and Bentley vehicles is alleged to have been sourced from western China. The news broke via The Financial Times, which notes Volkswagen was given reason to believe the offending component was an issue in January and alerted authorities while readying a fix (a new part), which should allow the vehicles currently being held at port to be released to dealerships and waiting customers.
So, what’s the deal with a tiny electronic part (according to VW) having such a huge impact? A law—the Uyghur Forced Labor Prevention Act of 2021—targets goods manufactured in western China, specifically the Xinjiang area, using forced labor. The Uyghurs are a Muslim minority that China has relentlessly oppressed, including by placing Uyghurs in “re-education camps,” and human rights groups say many detained Uyghurs are forced to do labor (yes, that would mean slave labor). The U.S. law aims to discourage the use of products produced in these deplorable conditions by eliminating them from goods bound for this economy.
It is not yet known or confirmed publicly whether the part VW Group flagged as problematic was actually produced in violation of the Uyghur Forced Labor Prevention Act or even in Xinjiang specifically, but the company says it is acting on the allegations alone, replacing the parts and investigating the original parts’ source. The automaker describes the part’s origin as a “sub-supplier,” meaning a supplier to one of its suppliers—an entity far down the supply chain—and notes it began to act as soon as it received information suggesting there could be a problem with the offending part. In reaching out to Volkswagen and Porsche for comment, MotorTrend was provided the following statement:
“We are working to rectify a delay in delivering certain Volkswagen Group vehicles from ports to dealers due to a customs issue. This relates to a small electronic component—part of a larger control unit—which is in the process of being replaced as parts arrive. Deliveries continue, however some unavoidable delays may occur, for which we apologize. We are contacting each customer to keep them informed.”
“Volkswagen takes allegations of infringements of human rights very seriously, both within the company and in the supply chain. Of course, this also includes any allegations of forced labor. We are constantly analyzing our processes and improving them on an ongoing basis. When we receive information on human rights risks or potential infringements, we strive to remedy them as quickly as possible. As soon as we received information of allegations regarding one of our sub-suppliers, we have been investigating the matter. We will clarify the facts and then take appropriate steps. These may also include the termination of a supplier relationship if our investigations confirm serious violations.”
According to the Financial Times, there are thousands of affected cars with the “small electronic component that is part of a larger control unit, which will be replaced,” per a VW letter to customers impacted by the fix.
Given the number of vehicles affected, and the time per fix stretching as long as a few hours per car on more complex models, it’s expected to take at least a month to clear the backlog at ports. Some cars have reportedly already been fixed, however.
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