Market Chatter: Volkswagen Said to Investigate Chinese Supplier Over Mass Dismissal of New Hires

04:50 AM EDT, 09/01/2026 (MT Newswires) -- Volkswagen (VOW.F, VOW3.F) initiated a probe into Changzhou Xingyu Automotive Lighting Systems following the supplier's termination of 107 newly hired university graduates, Reuters reported Tuesday, citing a company statement. The German carmaker said it takes allegations of violations across its supply chain "very seriously," adding that the investigation is considered standard procedure and that it would take "appropriate steps" based on its findings, according to the report. Xingyu, which supplies auto lamps to major European car brands, issued an apology on its WeChat account on Aug. 27 over the dismissal of the graduates, saying it will offer monetary compensation and job hunt support. Volkswagen and Xingyu did not immediately respond to requests for comment from MT Newswires. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)