Latest News

Official: BYD's factory in Brazil will be "fully functional" by the end of 2026.

In a video posted on Monday, Augusto Vasconcelos, Bahia's state labor secretary, said that the new factory of Chinese electric car manufacturer BYD in Brazil would be "fully operational" by December 2026. Its operations had been delayed due to an investigation into possible labor abuses.

He added that the factory would start manufacturing cars by the end of the year from semi-finished kitted.

Vasconcelos said in a video posted on social media that a new schedule was being created so the factory would be fully operational by December 2026, with an expectation of 10,000 jobs.

Vasconcelos stated that the news came as Bahia governor Jeronimo Rodriguez traveled to China, along with President Luiz inacio Lula Da Silva, to discuss plans for BYD, and the auto industry.

The company did not respond immediately to a comment request.

BYD is investing in Brazil, its largest market outside China. The goal of the investment is to convert a former Ford plant into a complex capable of producing 150,000 electric vehicles per year. In December, allegations of abuses on the site tarnished the project.

The Chinese company has bet heavily on Brazil, including the purchase of mining rights in areas that are rich in lithium. Lithium is a mineral used for batteries commonly found in electric vehicles.

According to Julio Bonfim of the Metalworkers Union of Camacari in Bahia, the plant was supposed to start making cars at the beginning this year. However, delays caused by the labor investigation and heavy rains impacted the timeline.

Bonfim reported that BYD will hire only 1,000 workers to assemble vehicles using kits imported from China this year. This is far less than the 10,000 promised by the Chinese company.

Bonfim, despite the delay, said that the new timeline was good news. He also predicted that hirings would increase next year as the company prepares to manufacture vehicles exclusively in the country. (Reporting and editing by Brad Haynes, Aurora Ellis and Fabio Teixeira)

(source: Reuters)