Caoa Chery halts production in Jacareí and will lay off around 480 workers

Caoa Chery informed this Thursday (5) that it will stop its activities at the factory in Jacareí, in the interior of São Paulo. Due to the suspension, said by the automaker as temporary, 480 workers will be fired, according to information from the Metalworkers Union of São José dos Campos e Região. The brand did not detail the number of disconnections.

According to the company’s statement, the suspension aims to “adjust the plant’s production processes to new models with hybrid and electric technologies”. At the Jacareí factory, opened in 2015, Caoa produced the Tiggo 3X and Arrizo 6 Pro models.


“Attentive to global demands in relation to sustainable mobility, the automaker is committed to Brazil and its consumers to electrify all models in its portfolio by the end of 2023”, says the note.

The company also states that the pause will be offset by greater investment in the production of the industrial plant in Anápolis (GO), “with several launches planned for the second semester”. In this unit, models of Hyundai and Chery are currently assembled. Even with the stoppage, Caoa Chery will maintain the goal of producing 60,000 units on the market in 2022.

The Jacareí unit was Chery’s first outside China. In 2017, Caoa bought 50.7% of the factory for US$ 2 billion (approximately R$ 10.06 billion at the current price), giving rise to Caoa Chery. The Brazilian company controls all production and marketing operations.

Factory will be closed until 2025, says union

The union says that, in a meeting, Caoa Chery announced that it will dismiss all production workers – about 370 employees – and 50% of the factory’s administrative sector, which has a total of approximately 600 people. According to President Weller Gonçalves, contrary to what the company says, the unit in Jacareí will be closed for three years and the return of activities will only occur in 2025.

“Caoa Chery lies in saying that it will not close the Jacareí plant and that this process is configured as a readjustment of the automaker for the production of electric cars. But it will be three years without producing in Jacareí, that is, three years with the factory closed and with fathers and mothers on the street”, says Gonçalves, in an interview with the union’s official publication.

Caoa claims to be negotiating with the union “a supplementary compensation package, in addition to the regular payment of legal severance pay, in line with its commitment to respect workers”. The union, in turn, will meet to prepare a negotiation proposal with Caoa. An assembly was scheduled for Friday (6), at 10 am, to discuss the situation.

In relation to customers, Caoa states that it will continue to provide “integral service”, maintaining technical assistance, guarantees, parts and services to all those who bought cars manufactured in Jacareí.

Main image credit: Caoa Chery/Disclosure

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