US Seizes Thousands of Volkswagen Vehicles Using Chinese Parts for "Forced Labor Prohibition Act" Violation

Shipment of Parts Produced in Xinjiang Uygur Autonomous Region Suspended for Thousands of Porsche, Bentley, and Audi Vehicles

The U.S. government has seized thousands of Porsche, Bentley, and Audi vehicles that may have been equipped with parts produced in China in violation of the Forced Labor Prevention Act.

According to major foreign media on the 14th (local time), U.S. authorities took this action against Volkswagen Group's automotive brands after being informed that parts produced in China, violating the Forced Labor Prevention Act, were installed in vehicles exported to the U.S. by the German automaker Volkswagen.

Earlier, Volkswagen identified that parts produced in the Xinjiang Uygur Autonomous Region of China were installed in vehicles through subcontractors. The U.S. introduced the "Uyghur Forced Labor Prevention Act" in 2021, which restricts the import of products from Xinjiang amid human rights abuse concerns. In response, the company immediately notified U.S. authorities of this fact. Delivery of the affected vehicles was postponed until the end of March to replace the parts.

Due to this action by U.S. authorities, about 1,000 Porsche sports cars and sport utility vehicles (SUVs), hundreds of Bentley vehicles, and thousands of Audi vehicles were seized at ports, unable to clear U.S. customs.

Volkswagen stated in a press release, "We take allegations of forced labor and human rights violations revealed within the company and its supply chain very seriously," adding, "We are investigating this issue and will take appropriate measures, including terminating relationships with suppliers if serious violations are found." The company also added that it will discuss future business directions regarding its joint venture with China’s Shanghai Automotive Industry Corporation (SAIC).

Despite criticism over human rights abuse controversies, Volkswagen had previously established and operated a joint venture factory with SAIC in Urumqi, the capital of the Xinjiang Uygur Autonomous Region. Analysts suggest that the company’s mention of possibly closing the Urumqi plant reflects a strategic decision to balance declining vehicle sales in China amid escalating U.S.-China tensions with strengthening its position in the U.S. market.