BYD’s Brazilian factory shut down

BYD’s reputation may take a hit this week as Brazilian law-makers have shut down the construction of the Chinese car giant’s upcoming factory in Brazil.

‘Slave-like conditions’ have been cited by Brazilian officials at the work site.

Set to be BYD’s biggest factory outside of Asia and a crucial site for export markets across the Americas, it is located in Camacari, Bahia, and according to the AFP, Bahia's Public Ministry for Works (MPT) identified “163 workers who appeared to be in slave-like conditions with the Jinjiang company providing services for BYD”.

BYD is attempting to distance itself from Jinjiang Construction Brazil, the company responsible for the construction of the new factory.

BYD’s Brazilian arm issued an official  statement it has “broken with immediate effect” its contract with Jinjiang Construction Brazil Ltd.

BYD's Brazilian subsidiary added that “…it does not tolerate violations of Brazilian law and human dignity," adding all the workers affected (who are Chinese nationals) have been moved to hotels.

The MPT described the situation as “alarming,” and confirmed that Chinese workers endured “degrading conditions” at the site, where workers were forced to sleep on bare bed frames, their belongings mixed with food supplies due to a lack of storage.

Brazilian authorities suspect ‘forced labour’ and allege workers' passports were confiscated and a majority of their wages withheld.

Prosecutors in Brazil have organised an online hearing to take place Thursday December 26 to allow BYD and Jinjiang to “…present the necessary provisions guaranteeing minimal accommodation conditions,” and the rectification of the violations detected.

BYD’s new South American car factory was planned to pump out around 150,000 vehicles per annum.

Until now, BYD has had a squeaking clean reputation and has been riding high on record global sales and is the only serious threat to Tesla in the electric vehicle sales wars.

Thanks to its solid product range, which in Australia has seen its plug-in hybrid vehicles such as the Sealion 6 SUV and Shark 6 dual-cab ute/pick-up truck attract big sales, BYD is confident it will topple Toyota to become Australia’s top-selling car brand.