BYD's Ambitious Electric Car Project in Brazil Faces Labor Scandal

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A significant labor scandal has emerged at BYD's construction site in Brazil, jeopardizing the company’s plans to produce electric vehicles in the country. On December 23, Brazilian labor inspectors rescued 163 Chinese workers from the site of BYD's factory in Camaçari, Bahia, where they reported conditions akin to slavery. The workers were allegedly made to live in unsanitary conditions, worked excessively long shifts without adequate breaks, and had their passports withheld.

The company’s subsidiary, Jinjiang Group, has denied the accusations, asserting that there has been a misunderstanding, while alleging external attempts to tarnish its reputation. Following the revelations, the Brazilian Foreign Ministry has suspended the issuance of temporary work visas to BYD.

Despite the turmoil, BYD aims to launch its first electric vehicles made in Brazil in March 2025. The factory is seen as a pivotal development amid growing Chinese influence in Brazil, particularly after Ford's exit from the market. The factory is projected to create up to 10,000 jobs by the end of 2025, fostering Brazil’s reindustrialization efforts and enhancing its environmental credentials.

The Brazilian Ministry of Labor has scheduled a hearing for January 7, where Jinjiang Group and BYD will be advised on potential measures to address the allegations. The case highlights the complexities of labor relations in Brazil, a country with a historical commitment to combating forced labor.

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