British University Says Auto Parts Imports Tainted by Uyghur Forced Labor

Researchers at Sheffield University, who previously documented ties to Uyghur forced labor in the cotton, solar panel supply chain and luxury vinyl tile sectors, now say that international car companies could be purchasing steel and aluminum that they use in car frames, axles, bodies, engine casings, wheels and brakes from Xinjiang, and that tires, windshields, batteries, car seats, circuit boards, central control systems, safety control systems, touchscreens, transformers, inductors, connectors and wiring solutions are all touched by forced labor.

In the case of electronics, it's through labor transfers of Uyghurs to Eastern China, the "Driving Force" report said. In the case of steel, aluminum, lead and copper, the processing of these raw materials is done in Xinjiang, and the researchers say that trains leave Xinjiang for Central Asia with parts and processed materials. Exporting this way to Europe allows "connections to the Uyghur Region [to be] obscured in the process," the report said.

The British university report said: "Every major car brand -- including Volkswagen, BMW, Honda, Ford, GM, Mercedes-Benz, Toyota, Stellantis brands (like Fiat, Chrysler, Dodge and Jeep), Tesla and NIO -- is at high risk of sourcing from companies linked to abuses in the Uyghur region."

The report included responses from some companies named in the report, including Bosch Auto Parts. "Materials and components from our direct suppliers also are not mined, produced or manufactured at sites in the XUAR. This includes the company CATL that you have identified to us," the company told Sheffield professor Laura Murphy. "As to Shenzen Deren, another company you have identified to us, this is not a direct supplier to Bosch."

Volvo said it has a long-term agreement with battery maker CATL, and said, "We take information about potential violations of our Code of Conduct for Business Partners very seriously. We will launch an investigation to follow up on any allegations highlighted in the report related to Volvo Cars."

General Motors said it asks all its Tier 1 suppliers to sign a code of conduct, but that GM also does "continuous risk assessment, using a variety of tools and cross-functional resources to better understand and mitigate risk." It also said that it is working to localize as much of its supply chains as possible as it moves to electrify its fleet of vehicles.

Trade groups that represent major automakers operating in the U.S. and auto parts manufacturers did not immediately respond to requests for comment.

However, in the body of the report, the researchers said electronic companies in Eastern China said they no longer accept transfers of Uyghur workers. "Unlike in the Uyghur Region, where companies are highly incentivized to engage in the labor transfer programs and discouraged from signaling that there has been any change in practices in regard to labor transfers, it does seem that some companies from other parts of China have managed to publicly announce a change in their recruitment strategies. However, highly specialized audits would need to be conducted to ensure these claims are accurate and sustained," the report said.

The report recommends that governments identify "the automotive sector as a priority for the implementation of forced labor import bans. Governments should devote substantial resources to identifying automotive parts and materials linked to forced labor. The United States should, in particular, name the aluminum, steel, and automotive industries as high-priority sectors under the Uyghur Forced Labor Prevention Act (UFLPA)."

CBP officials have said that civil society investigations play a role in helping them decide what to target (see 2202150037), but former government officials say that agency officials do not accept these sorts of investigations as fact -- they have to do their own due diligence once alerted to the issue (see 2112280048).