Automotive Industry to Mandate Due Diligence Reporting for Suppliers by 2025

The Automotive Industry Action Group (AIAG) has announced a significant update to its Due Diligence Reporting Template (DDRT), aimed at enhancing compliance and monitoring of forced labor within the supply chain. As of September 2025, original equipment manufacturers (OEMs) such as Ford, GM, Honda, Nissan, Stellantis, and Toyota will require selected suppliers to submit this standardized reporting template to ensure alignment with evolving industry standards.

Overview of the DDRT V2

The new version of the Due Diligence Reporting Template (DDRT V2) is designed to streamline communication regarding forced labor risks between OEMs and their suppliers, regardless of size. This update is crucial in addressing rising regulatory demands for transparency and accountability in supply chains, especially in light of new legislations in various countries that tackle forced labor practices. By fostering a collaborative approach, the DDRT aims to help suppliers proactively manage risks and comply with legal requirements.

AIAG's DDRT serves as a free tool that aids suppliers in disclosing potential supply chain risks and aligning with OEM expectations efficiently. Bashar Cholagh, head of global Communications Purchasing and Supply Chain at Stellantis, emphasizes that this unified approach will enable suppliers to develop strategies for risk mitigation while maintaining ethical sourcing practices.

The Importance of Due Diligence in the Automotive Sector

Forced labor has been a persistent issue within global supply chains, and the automotive industry is increasingly under scrutiny for its role in perpetuating these practices. Reports of detained shipments by U.S. Customs and Border Protection (CBP) have highlighted the urgency for compliance, with statistics indicating that a staggering 75% of automotive and aerospace shipments have faced detainment. The AIAG's enhanced DDRT reflects a commitment to addressing these challenges head-on, providing suppliers with the necessary tools to navigate complex regulations and demonstrate accountability.

Key Features of the DDRT V2

1. Industry-Wide Alignment: The DDRT promotes uniformity in reporting by establishing annual submission deadlines and encouraging cooperation between OEMs and suppliers.
2. Enhanced Compliance: The streamlined reporting process facilitates easier due diligence, which supports adherence to industry standards and legal regulations.
3. Proactive Risk Mitigation: By identifying and communicating potential forced labor risks, the DDRT allows suppliers to implement effective risk management strategies.
4. Transparency and Accountability: Utilizing the DDRT signifies a supplier's commitment to ethical practices and fosters trust with OEMs.
5. Reporting Automation: The integration of technology simplifies report generation, making the submission process more efficient.

Tanya Bolden, Vice President of Supply Chain Products and Services at AIAG, underscores the necessity of the updated DDRT amid the rising enforcement actions that the automotive sector faces. The latest version of this template not only aligns with regulatory expectations but also enhances the industry's commitment to human rights and ethical sourcing.

Support and Resources

In addition to the DDRT, AIAG's Forced Labor Due Diligence Program will provide training materials, industry guidance, and access to technology providers at negotiated prices for its members. This comprehensive approach empowers suppliers with the knowledge and resources necessary to comply with evolving regulatory landscapes effectively.

Conclusion

As the automotive industry prepares for the mandatory implementation of the DDRT V2, it marks a pivotal step towards a more responsible and transparent supply chain. By fostering an environment of collaboration, accountability, and ethical standards, the industry can significantly reduce the risks of forced labor and uphold its commitment to promoting human rights within its operations.

For additional information and resources, visit AIAG's official website.