Mass Dismissals at Chinese Auto Supplier Draw Scrutiny From Global Carmakers

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.