Brazil closes BYD factory over ‘slavery’ conditions

Brazilian authorities have halted construction at a factory at Chinese electric vehicle (EV) giant BYD, saying workers were living in conditions comparable to “slavery”.

More than 160 workers were rescued in the northeastern Brazilian state of Bahia, according to reports statement of the prosecutor’s office on labor (MPT).

Allegedly, they were put in “humiliating” conditions, and the construction company withheld their passports and salaries.

BYD said in a statement that it had ended its relationship with the firm involved and remained committed to “full compliance with Brazilian law.”

The plant was supposed to be operational by March 2025 and was to be BYD’s first electric car production plant outside of Asia.

Workers employed by Jinjiang Construction Brazil lived in four properties in the city of Kamasari.

In one such facility, according to the prosecutor’s office, workers were forced to sleep on beds without mattresses.

Each bathroom was also shared between the 31 workers, forcing them to get up very early to be ready for work.

“The conditions found in the dwellings revealed an alarming picture of fragility and degradation,” MPT said.

“Slavery-like conditions,” as defined by Brazilian law, include bonded labor and work that degrades human dignity.

The MPT added that the situation also amounts to “forced labour” as many workers have had their wages withheld and faced exorbitant costs for canceling their contracts.

BYD said that the injured workers were taken to a hotel.

He added that he had carried out a “detailed review” of the working and living conditions of the subcontractors and had asked the construction firm “several times” to make improvements.

BYD, short for Build Your Dreams, is one of the world’s largest manufacturers of electric vehicles.

He has sold more electric cars than Elon Musk’s Tesla in the last three months of 2023, when both were fighting for the top spot in the sector.

The company is also expanding its presence in Brazil, which is its largest foreign market by a wide margin.

The first factory opened in São Paulo in 2015, producing chassis for electric buses.

Last year, the company announced it would invest 3 billion reais ($484.2 million) in Brazil to build an electric car factory.

Sales of electric cars in China have increased due to government subsidies. which encourage consumers to trade in their gasoline-powered vehicles for electric vehicles or hybrids.

But there is a growing backlash abroad over what some see as the Chinese government’s unfair support for domestic carmakers.

Major markets such as the US and the EU have imposed tariffs on electric vehicles from China, and the tariffs are expected to increase during the administration of US President-elect Donald Trump.