U.S. Customs recently seized thousands of Volkswagen Group Porsche, Bentley and Audi cars for using an electronic component from China that allegedly violated U.S. sanctions against China and involved forced labor in Xinjiang. The Volkswagen Group was forced to urgently replace parts, delaying the delivery of the car, and at the same time facing investigation and pressure from the United States** and the international community.
According to the Financial Times, the Volkswagen Group discovered the problem in mid-January when its supplier alerted it that a small electronic component on the car came from "western China" and that there may be "forced labor". The Volkswagen Group immediately notified the United States** and said that it would "seriously investigate the allegations". U.S. Customs seized thousands of Volkswagen-branded vehicles under the Uyghur Forced Labor Prevention Act and required Volkswagen to replace parts before entering the United States.
The incident had a negative impact on the Volkswagen Group's reputation and sales in the United States, as well as on the development of the European automotive industry. While the European automotive industry is facing multiple challenges such as inflation, rising interest rates, and the transition to electric vehicles, the Chinese automotive industry has emerged as a strong competitor in the global market. According to reports, China has surpassed Japan and Germany to become the world's largest car exporter, and electric vehicle manufacturer BYD has made it difficult for European car manufacturers.
Volkswagen Group had hoped to hedge against the European auto industry by investing in China, but it was hit by US sanctions and international pressure because of allegations of forced labor in Xinjiang. Volkswagen Group and SAIC Motor Group have opened a plant in Urumqi, Xinjiang, which has long been questioned and criticized by the outside world. According to the German news agency dpa, Volkswagen Group is discussing with SAIC "the future direction of its business in Xinjiang", and the outside world is concerned about whether Volkswagen Group may withdraw from Xinjiang.
This incident reflects the vigilance and suppression of China's auto industry by the United States, as well as the competitiveness and influence of China's auto industry in the global market. The U.S. House of Representatives' "Select Committee on China" sent a letter to U.S. delegates last year, urging them to raise tariffs on Chinese cars in order to "curb a potential surge in Chinese car imports." Ford Executive Chairman Bill Ford has also warned that American automakers are "not ready" to compete with Chinese automakers.