Luxury Car Brands in Limbo After Chinese Company Violates Labor Laws
A Chinese car parts supplier that violated the Uyghur Forced Labor Prevention Act exposes need for visibility on the entire supply chain
One tiny part, a LAN transformer used to connect cars and computers to networks, was built into the control systems of Porche, Audi, and Bentley autos. The part was manufactured by a Chinese company, JWD Technology, a sub-supplier (tier two), and sold to the automakers as part of a subassembly.
In December, the U.S. government placed JWD Technologies on the banned entities list for imports coming from the Uyghur Forced Labor Region in Xinjiang Provence. Volkswagen Group (parent organization of Porche, Audi, and Bentley) was notified by its tier 1 supplier that sub-supplier JWD was supplying parts to them and had been blacklisted under the Uyghur Act. Volkswagen Group then halted shipments to the U.S. until the part could be replaced by another supplier—a process that is still ongoing.
JWD Technology had previously listed Tesla, BMW, HP, Cisco, Google, and Amazon as its customers, according to the Wall Street Journal. It’s possible that other automakers and tech companies also used JWD in their products.
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