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BYD’s new EV plant in Brazil suddenly halted over ‘slavery’ worker conditions [Update]
Construction at BYD’s new EV plant in Brazil was suddenly halted Monday after authorities found Chinese workers in “slavery-like” conditions. The workers were hired in China by another firm, and BYD has since cut ties. BYD and the firm are now saying the term “slavery” was unjustly used, and some translations may have been misunderstood.
Why construction at BYD’s EV plant in Brazil is halted
Updated 12/26/24: This article has been updated with the latest information, including a statement from Jinjiang Group and comments from BYD’s general manager of public relations, Li Yunfei. Read more below.
According to a statement from the Public Ministry of Labor (MPT), 163 workers at the construction site of BYD’s new EV plant in Salvador, Brazil, were “being held in conditions analogous to slavery.”
Construction on the site was halted on Monday after the findings. According to the authorities, Jinjiang Group, one of the contractors BYD hired to build the new EV plant, hired the workers in China.
BYD released a statement saying it has cut ties with Jinjiang and is assisting the victims as it works with Brazilian authorities. All workers will be transferred to hotels. They will not be able to work and will have their contracts terminated.
Alexandre Baldy, senior vice president of BYD Brazil, said the company remains “committed to full compliance with Brazilian legislation, especially with regard to the protection of workers’ rights and human dignity.”
The MPT statement detailed the extreme “slavery-like” worker conditions. For example, they had one bathroom for every 31 workers, forcing them to wake up at 4 am to get in line to be ready for work at 5:30 am. They slept without mattresses on the bed, and the kitchens operated in “alarming conditions.”
If a worker quit after six months, they would leave the country without any pay after factoring in the cost of a round-trip airplane ticket.
BYD said it has held a “detailed review” over the past few weeks. The Chinese EV giant asked Jinjiang several times to improve the conditions.
A joint virtual hearing of the MPT and MTE is scheduled for December 26. The MPT said the need for new “on-site inspections” has not been ruled out. BYD’s new EV plant is set to begin production next year. Check back soon for more updates on the situation.
Update 12/26/24: Jinjian Group said the portrayal of its employees working in “slavery-like” conditions was inconsistent, and some of the translations may have been misunderstood.
“Being unjustly labeled as ‘enslaved’ has made our employees feel that their dignity has been insulted and their human rights violated, seriously hurting the dignity of the Chinese people,” Jinjiang said in a social media post (via Reuters). The company issued a joint letter to issue an apology.
BYD’s general manager of public relations, Li Yunfei, reposted the statement. Li added that “foreign forces” and some other members of the media were “deliberately smearing Chinese brands.
Mao Ning, a spokesperson for China’s foreign ministry, said the Chinese embassy in Brazil was in talks with leaders in the region to verify the accusations.
BYD is already a top-selling EV brand in Brazil. In October, it launched its first pickup, the Shark PHEV. The pickup is BYD’s sixth vehicle in Brazil, joining other popular models like the Dolphin Mini (Seagull), Yuan Plus, and Dolphin.
Once up and running, which was expected later this year or early 2025, BYD’s Brazil plant will have an annual production capacity of 150,000 vehicles.
Source: Bloomberg, Brazil Public Ministry of Labor
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Australia is the latest market to report a significant drop in Tesla sales for the first month of 2025, and in this case, the automaker can’t blame the Model Y changeover.
Earlier this week, we reported on European markets releasing car sales data for January, showing a massive drop in Tesla sales.
Tesla sold roughly half as many cars in Europe in January 2025 compared to January 2024.
Most industry watchers agree that there are two main reasons behind the sharp decline:
- Elon Musk’s meddling in politics and spreading misinformation on social media is driving people away from Tesla
- Tesla is transitioning Model Y production to the new design, which is affecting production and sales
Now, Australia is reporting its car sale numbers for January 2025, and it shows that Tesla is also having issues in this market.
In the first month of 2025, Tesla delivered only 739 vehicles – down 33% year-over-year.
This time, Tesla can’t blame the Model Y changeover as Model Y deliveries were actually up 20%.
Model 3 is the problem. Sales of Tesla’s cheapest model were down 63%.
This has been Tesla’s trend in Australia for the last year. In January 2023, Tesla delivered more than 2,000 vehicles in the country, but now it can only deliver a few hundred units. In 2024, Tesla’s sales dropped 17% for the whole year.
Electrek’s Take
At this point, it’s fairly clear that Tesla’s sales will be abysmal in Q1. Tesla will use the excuse of the Model Y changeover, and it will undoubtedly be partly true, but I think the Elon effect is also be a significant part of Tesla’s sales problem.
Unfortunately, it’s impossible to calculate, but in the case of Australia, we can see that it’s part of the problem with the model breakdown.
Australia is not a huge car market and it won’t have a major impact on Tesla, but the trend appears to be similar in most markets.
The US is the biggest wildcard, as Elon still has a lot of fans there, obviously. US data is a bit more opaque and it will take a while for us to see an impact, if any.
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Environment
Southern California Edison acknowledges videos suggest link between equipment and Eaton fire
After ending its planned EV merger with Honda, Nissan is now on the hunt for a new partner to help it recover. To survive the industry’s shift to electric, software-defined vehicles, Nissan could turn to Apple supplier Foxconn.
Nissan looks past Honda for new EV partners
At a board meeting on Wednesday, Nissan decided to move on from the EV merger with Honda. The sudden change comes after Honda reportedly wanted more control over the partnership.
According to sources close to the matter, Nissan is now searching for new partners. Nissan CEO Makoto Uchida met with Honda’s head honcho on Thursday morning (via Financial Times), confirming plans to end merger talks.
With a combined market cap of around $58 billion, the alliance would have created the world’s fourth-largest auto group.
The merger with Honda fell apart after the company told Nissan that the new offer, which would make them a subsidiary, was “take it or leave it.” Honda is reportedly worried about Nissan’s turnaround plans and accused them of moving too slowly on their restructuring plans.
Nissan announced plans to reduce its workforce by about 9,000 and 20% of global production as part of its turnaround strategy.
Last year, Nissan’s global production fell 9%, with every region except Mexico seeing significantly less output. China led the way, with production slipping 14.7%, followed by the US (-13.3%), the UK (-12.6%), and Japan (-8.6%).
Two sources said Nissan’s new partners could include tech leaders outside the EV and automotive industry. Several board members also discussed a partnership with Apple supplier Foxconn.
Foxconn already met with Renault, which owns 36% of Nissan, about buying a part of its stake in the Japanese automaker. The interest sparked the initial talks between the two companies. Jun Seki, chief strategy officer at Foxconn’s EV business, worked at Nissan for 33 years, rising up the ranks to become the number three senior executive.
Nissan and Honda declined to comment, saying they expect a final decision by mid-February. Foxconn also had no comment on a potential partnership. Both companies are set to report earnings next week, so we will likely find out more.
Can Foxconn or another tech partner help Nissan turn things around? Drop us a comment below and let us know your thoughts.
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