By Fabiano Maisonnave
Kamakari, Brazil (AP) — Locals saw a new beginning when Chinese automaker Byd Co. announced plans to build a large factory in Kamakari, the hard scrabble city of Bahia, northeastern Brazilian state of Bahia. After years of economic stagnation following the exit from the region for Ford Motor Co. in 2021, the global electric vehicle leader was hoping to regain a well-paid work and a brighter future.
The timing seemed right. In Brazil, the world’s sixth largest automotive market, EV sales are surged, with BYD leading the rates. For Kamakari, the deal promised to fill the economic gap left by the American company, once the city’s largest employer.
The plan was then on track.
The December raid, led by Brazilian authorities, rescued 163 Chinese citizens and is said to work at the site under “slavery-like” conditions. A video from the Labor Public Prosecutor’s Office showed a dorm with a bed without mattress and makeshift cooking facilities. The company postponed plans to launch its first production line in March, and had not established a new timeline, spreading fear among Kamakari workers.
“When BYD announced it was coming here, it sparked a lot of hope for us,” said Luizmar Santana Pereira, a metal worker and former Ford employee who works as a taxi driver. “We’ve been waiting for this job opportunity, but so far we haven’t seen it.”
After the attack, a spokesman based at BYD’s China headquarters denied the fraud in a post on Weibo’s social media site, stating that the accusations were an attempt to “paint” Chinese brands and China. The post also denounced the allegations “foreign military” and criticised media reports.
In a statement sown in Brazil, the carmaker adopted a more reconciliatory tone. The company “does not tolerate disrespect to Brazilian law and human dignity,” and withdrew a contract with Chinese construction company Jinjiang, which brought workers.
In Brazil, there is plenty of space for BYD to grow
EVs are spreading rapidly in Brazil, the most populous in Latin America. According to the Brazilian Electric Vehicle Association, sales rose 85% in 2024, reaching over 170,000 units, including fully electric and hybrid vehicles. This accounts for around 7% of domestic new car sales.
Growth is led by BYD. Of the 10 EVs sold in Japan, seven come from brands, and this also leads hybrid sales. Imported BYD vehicles and dealers are common sights in major cities such as Sao Paulo and Brasilia. In Brazil’s capital, whether it’s EV or gasoline, it’s a bestselling brand.
Another Chinese EV manufacturer, GWM, has recently announced plans to open a factory in Brazil after acquiring the shuttered Mercedes-Benz facility in the industrialized state of Sao Paulo.
BYD’s invasion in Brazil is in parallel with the company’s global growth. The world’s leading EV company recorded a record $107 billion in revenue in 2024 as sales of electric and hybrid vehicles rose 40%, surpassing its American rival Tesla. This year, the plans include taking over the first European car factory currently under construction in Hungary.
The vehicle, which opened on Friday, March 7, 2025, in the same building as a Ford dealer in Kamakari, Bahia, Brazil, said it will “build your dreams” that opened on Friday, March 7, 2025 in the same building (AP Photo/Eraldo Peres).
On Thursday, March 6th, 2025, signs for the BYD Vehicle Factory are on display in Kamakari, Bahia, Brazil (AP Photo/Moraldo Perez)
Employees work on Thursday, March 6, 2025 at the BYD vehicle factory under construction in Kamakari, Bahia, Brazil (AP Photo/Eraldo Peres)
Employees work at the BYD Vehicle Factory, which is being built in Kamakari, Bahia, Brazil on Thursday, March 6, 2025 (AP Photo/Moraldo Peres)
Security Guard will control access to the BYD vehicle factory being built in Kamakari, Bahia, Brazil on Thursday, March 6, 2025 (AP Photo/Eraldo Peres)
Luizmar Santana Pereira, a former Ford employee who has registered for the BYD job, will be interviewing the Associated Press on Saturday, March 8, 2025 in Kamakari, Bahia, Brazil (AP Photo/Eraldo Peres).
The vehicle on the left will pass a sign indicating Henry Ford Avenue on Thursday, March 6, 2025, on the road to the industrial park where the BYD factory is being built in Kamakari, Brazil.
BYD electric car rates (AP Photo/Eraldo Peres) at a dealership in Kamakari, Bahia, Brazil on Friday, March 7, 2025
People walking near the sign in Kamakari, Bahia, Brazil on Friday, March 7, 2025 (AP Photo/Moraldo Peres)
The BYD Vehicle Factory is under construction in Kamakari, Bahia, Brazil on Thursday, March 6, 2025 (AP Photo/Morado Perez)
Car attendant wears a vest from China’s construction company Jinjiang, located in the market parking lot in Kamakari, Bahia, Brazil on Saturday, March 8, 2025 (AP Photo/Moraldo Peres)
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The vehicle, which opened on Friday, March 7, 2025, in the same building as a Ford dealer in Kamakari, Bahia, Brazil, said it will “build your dreams” that opened on Friday, March 7, 2025 in the same building (AP Photo/Eraldo Peres).
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According to Adalbert Malff, the state secretary of urban environment and environmental quality, Brazil’s policy is driving the sale and production of EVs.
In an interview with the Associated Press in Brasilia, Maluf cited the incentives enacted in 2024. It supports a new air quality program with electric motors, low-emission vehicle tax cuts, and national surveillance and pollution reduction targets.
According to the non-profit Climate Watch, Brazil is one of the top 10 greenhouse gas emitters, donating around 3% of global emissions. However, about half of greenhouse gas emissions come from deforestation, mainly from Amazon deforestation, and as agriculture continues, energy pollution does not play a major role. Approximately 85% of the country’s electricity comes from renewable sources.
For Malph, who has worked for BYD Brazil for almost nine years, the country is attractive to Chinese electric car manufacturers, from its market size to the presence of several auto parts suppliers and the strong political ties between the two countries.
“Brazilians have no geopolitical issues with China. When you ask, ‘Are you opposed to China?'” Most people don’t have a strong opinion on it,” he said.
“But in the US, it’s part of the president’s rhetoric,” he added, noting President Donald Trump’s frequent comment that China would “break away” in trade.
The next one for BYD Factory is unknown
Since the attack, BYD has not allowed press visits on Kamakari’s premises, citing concerns about trade secrets. It is unclear whether BYD is still on track to turn the previous Ford site into the largest factory outside of China by the end of 2026.
When AP journalists visited in March for a few days, they only saw a small number of construction workers on the big site. Then one day, while standing on the street adjacent to the property, three Bidoguards, one with their hands on a gun, falsely accused a journalist of flying a drone within the boundaries of the factory, demanding identity verification. A few minutes later, a motorcycle guard approached and ordered the journalists to stop filming the workers.
BYD said the security guard had refused to act properly and answer other questions about his business in Brazil.
The future of factories is unknown, but the attacks and presence of Chinese workers have attracted the attention of trade unions.
“The Metal Workers Union does not tolerate Chinese workers on production lines. If that happens even at the start of production, we will ask for a halt of work,” union president Gilio Bonfim told the Associated Press. Bonfim did not object to BYD hiring Chinese engineers and managers, but added that the factory floors must only employ Brazilians. It was unclear if BYD agreed to that.
The pace of raids and construction appears to be slower, but in the Kamakari region the transition from Ford to BYD becomes increasingly noticeable. The three-year-old dealer for the American brand, named Indiana, is now sharing the space with BYD reseller Mandarim, in tribute to the United States. Local hotels began distributing instructions to Chinese guests, particularly those who were Chinese, asking them not to hang the washed clothes in common areas. And state lawmakers introduced a bill to change the name of Henry Ford Avenue, where the factory is located.
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Original issue: April 14, 2025, 8:02 pm EDT
