Caoa Chery Halts Vehicle Production in São Paulo Interior and Layoffs All Employees Involved in Manufacturing Activities at the Site

With the goal of transforming its factory in Jacareí, São Paulo, into an electric car production unit, Caoa Chery announced at the end of the afternoon yesterday (05) the suspension of the plant and the dismissal of all employees. 

Caoa Chery announced on Thursday (05) the suspension of vehicle production at its factory in Jacareí, in the interior of São Paulo, where the Tiggo 3x and Arrizo 6 Pro models were produced. In a statement issued, the company states that the decision aims to remodel the production line to manufacture electric cars, updating its product range. According to the Metalworkers’ Union of São José dos Campos and Region, there will be layoffs of Caoa Chery employees involved in manufacturing activities on-site.

Understand All the Details About the Suspension and Dismissal of Employees

With this decision from Caoa Chery, the automaker will produce, at least for the time being, vehicles only at its factory in Anápolis (GO), where the Tiggo 5x, Tiggo 7, and Tiggo 8 models are manufactured.

The factory was inaugurated in 2001 and is also responsible for producing some models from the Hyundai brand. According to the company, in a statement, the suspension of industrial activities at the São Paulo unit will be compensated by the intensified production at the plant in Anápolis, which is being prepared for new launches in the second half of this year.

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Thus, Caoa Chery continues with its goal of selling 60,000 vehicles in the national market in 2022. The Jacareí factory, where employees will be dismissed, was the first Chery factory outside of China, and in 2017, Caoa took over 50% of the unit, when the Brazilian company began to control all marketing and production operations, giving rise to Caoa Chery. According to the company’s website, the unit is capable of producing up to 150,000 vehicles per year. 

São Paulo Unit Had Already Been Suspended

The factory in Jacareí underwent a suspension in March; however, no layoffs were mentioned at that time, and Caoa Chery stated that the stoppage was due to a lack of electronic components that has affected the entire vehicle industry in recent years.

According to the president of the Metalworkers’ Union of São José dos Campos and Region, Weller Gonçalves, a meeting was held with the company, which plans to change the type of production at the Jacareí factory.

Thus, it will dismiss all production sector workers and more than 50% of administrative staff. According to Gonçalves, in a meeting with the brand’s representatives, the union was informed that the factory in São Paulo will be adapted for the production of electric and hybrid vehicles in 2023.

Caoa Chery Enters Negotiation for Employee Compensation

According to the statement, Caoa states that the suspension will be temporary and that the São Paulo unit will undergo changes for the adaptation of production processes, making it possible for new products to be generated from state-of-the-art platforms.

Regarding the dismissal of employees, the company states it is negotiating with representatives of the Metalworkers’ Union of São José dos Campos and region to define compensation packages for the employees. 

According to the statement, the company reinforces that it will continue to provide full service to customers of the models produced at the suspended unit, maintaining complete technical assistance, parts, services, and guarantees at its more than 140 dealerships located in all regions of Brazil.