BYD draws EU scrutiny over labor abuse allegations at Hungary factory
BYD is facing EU scrutiny over labor abuse allegations at its Hungary factory, following reports of a worker's death and inadequate medical support for staff. The allegations involve a contractor linked to a prior 'analogous to slavery' scandal in Brazil, raising concerns about BYD's overseas labor practices. Emergency services were called 12 times to the site since February, with one confirmed death. The scrutiny comes as BYD expands globally, aiming to sell over a million cars outside China this year.
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In February, a worker reportedly died on-site during a crane operation. Citing conversations with workers, CLW founder Qiang Li told CNBC there had been more deaths on site.He added that, based on conversations with workers, broader medical support was inadequate as individuals were not always employed on work visas with corresponding medical insurance.Hungary's National Ambulance Service told CNBC Thursday that since Feb. 1, emergency medical services were called to the factory site 12 times, with one death. The latest allegations come as BYD has expanded into an automotive powerhouse, surpassing Tesla as the world's largest electric car manufacturer in 2025. BYD is among a wave of Chinese companies expanding overseas, aiming to sell more than a million cars outside China this year as sales in its home market slump.One contractor named in the report, AIM Construction Hungary, is a subsidiary of Jinjiang Construction Group — the same firm linked to a 2024 scandal at BYD's factory in Brazil that national labor authorities said, following investigations, involved conditions "analogous to slavery." BYD claimed in December 2024 that it stopped working with Jinjiang Construction's Brazilian subsidiary in the wake of the scandal. But the CLW report allegations indicate BYD hired another subsidiary of the same Jinjiang group to build the factory in Hungary. The report said CLW reviewed a sample labor contract for jobs at BYD's Hungary factory, which included the option of being sent to Brazil and Turkey, where BYD is also building a factory.AIM Construction Hungary was previously known as China Jinjiang Construction Hungary, according to company records from Hungary's Ministry of Justice, accessed through an authorized data provider.BYD and the Jinjiang entities did not respond to CNBC's requests for comment. Authorities in the EU also did not respond.The facility in the southern Hungarian city of Szeged is one of five BYD sites in Hungary, where the automaker established its European headquarters nearly a year ago during a visit by chairman Wang Chuanfu.
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