On September 1, Volkswagen China announced that it had been alerted to complaints concerning the large-scale termination of newly recruited graduates by its supplier, Xingyu Shares. The company took these allegations very seriously and promptly launched a dedicated investigation, which is now in progress. Volkswagen China underscored that upholding the lawful rights and interests of workers stands as a fundamental tenet of its corporate and supply chain governance, mandating the full safeguarding of all essential values and rights.

Earlier, Xingyu Shares found itself embroiled in controversy following reports that it had dismissed newly hired graduates merely a month into their employment or proposed controversial measures such as reallocating them to production line roles, prompting widespread societal concern. The Changzhou Human Resources and Social Security Bureau intervened to probe the matter and revealed that Xingyu Shares had employed overly simplistic and forceful tactics during the negotiation phase, resulting in the suspension of the HR director. In response, Xingyu Shares issued a letter of apology, pledging to offer job-hunting subsistence allowances and employment referral services to the impacted students. Furthermore, the company stated that if employment is not secured within three months, the affected individuals will be entitled to compensation equivalent to six months' salary.