Xingyu Auto Dismisses 107 Fresh Graduates, VW to Review Supply Chain Compliance
Xingyu Auto, a leading Chinese automotive lighting maker, hired 440 graduates from the class of 2026 and then terminated contracts with 107 of them. The affected graduates filed complaints with labor authorities and submitted evidence to the Hong Kong Stock Exchange, EU forced-labor compliance channels, and global compliance departments of Volkswagen, BMW, and Mercedes-Benz. Volkswagen responded that it will review labor compliance among supply chain companies.
Xingyu Auto, a leading domestic developer and manufacturer of automotive lighting, recruited 440 university graduates from the class of 2026 and subsequently terminated labor contracts with 107 of them. The incident has sparked widespread public discussion, with related topics trending on social media.
Unlike previous labor disputes that were addressed through negotiation, arbitration, litigation, or online appeals, the affected graduates filed complaints with domestic labor inspection authorities and also submitted complaints and supporting evidence to the Hong Kong Stock Exchange, the compliance channel under the EU Forced Labour Regulation, and the global compliance departments of key partner automakers including Volkswagen, BMW, and Mercedes-Benz, in an effort to amplify their cause. Volkswagen Group, a partner automaker of Xingyu Auto, responded that it will review labor compliance among its supply chain companies.