The Financial Times has disclosed, relying on information from two insiders, that Volkswagen Group is facing a setback in the United States as thousands of its cars are being held back due to a Chinese component suspected of being produced through forced labor. Volkswagen Group itself reportedly unearthed this issue.
The company was apparently unaware of the origin of the problematic part, as it was supplied indirectly. The revelation came to light when the supplier eventually disclosed the information to the German automaker, prompting Volkswagen Group to notify American authorities.
According to these insiders, the affected vehicles include around a thousand Porsches, several hundred Bentleys, and multiple thousands of Audis.
They revealed to FT that these cars contain a component sourced from ‘Western China,’ a region where the Uyghur population, a predominantly Muslim ethnic minority, is reportedly facing severe oppression.
The United States has imposed a ban on imports of products suspected of being manufactured through forced labor in various Chinese regions.
Earlier in the week, Volkswagen had announced an investigation into all its operations in Xinjiang, a western Chinese region, following a report by the German newspaper Handelsblatt.
The report alleged the use of forced labor in the construction of a testing facility in Turpan, located in the same region. However, the insiders declined to confirm whether the problematic component originated from this particular region to FT.
They mentioned that deliveries of Volkswagen vehicles have been delayed until the end of March, with plans to replace the parts before then.
