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Mass Dismissals at Chinese Auto Supplier Draw Scrutiny From Global Carmakers

Published: Sep. 1, 2026  10:57 p.m.  GMT+8
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The incident arrives during a critical window for Xingyu as it pursues a listing in Hong Kong. Photo: VCG
The incident arrives during a critical window for Xingyu as it pursues a listing in Hong Kong. Photo: VCG

Global automakers including Volkswagen AG, Mercedes-Benz Group AG and BMW AG have launched compliance investigations into a major Chinese auto parts supplier over allegations of labor abuses involving more than 100 newly hired graduates.

The probes target Changzhou Xingyu Automotive Lighting Systems Co. Ltd., a Shanghai-listed company currently seeking a stock listing in Hong Kong, after it abruptly dismissed the recruits or forced them into assembly-line jobs just weeks after hiring them.

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