Volkswagen Probes Chinese Supplier Over Graduate Dismissals

Volkswagen AG’s China unit has launched a compliance investigation into a major Chinese auto parts supplier following reports that the Chinese company abruptly dismissed over 100 newly hired college graduates just weeks into the job.

The probe underscores the increasing compliance risks faced by Changzhou Xingyu Automotive Lighting Systems Co. Ltd., a Shanghai-listed company currently seeking a stock listing in Hong Kong, as global automakers strictly enforce international labor and human rights standards across their supply chains.