BYD’s Slave Labor Problem

By Douglas McIntyre • December 26, 2024

Magda Ehlers Pexels

BYD has been accused of using slave labor at its Camaçari city facility in Brazil. The information could undermine China-based BYD’s growing reputation as a primer maker of EVs. The company is so large it is key to speedy global EV adoption.

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Semafor states, “….staff were forced to sleep on beds without mattresses, shared one bathroom between 31 workers, and had passports and wages withheld.” There have been conversations about BYD opening facilities in Hungary, Mexico, and Turkey. Each facility could offer entry to US and European markets, but tariffs block them.

China And Europe

BYD already has a challenge. The Chinese government underwrites its operations. The UN and many European countries have decided that this government’s help has aided BYD in offering below-market prices, which they could do outside China.

BYD needs goodwill to increase its sales outside of China significantly. Its behavior in new markets will be key to its ability to expand its footprint.

The Brazil move doesn’t help.