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

Caoa Chery announced, this Thursday (05), the stoppage 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 so that electric cars are produced, updating its product range. According to the Metalworkers' Union of São José dos Campos and Region, Caoa Chery employees who are involved in manufacturing activities at the site will be dismissed.

Understand all the details about the stoppage and dismissal of employees

With this decision by Caoa Chery, the automaker will start producing, at least for the time being, vehicles only at its plant in Anápolis (GO), where the Tiggo 5x, Tiggo 7 and tiggo 8.

The factory opened in 2001 and is also responsible for producing some of the brand's models. Hyundai. According to the company, in a note, the stoppage in industrial activities at the unit in São Paulo will be compensated with the intensification of production at the plant located in Anápolis, which is being prepared for new launches in the second half of this year.

Thus, Caoa Chery continues with its goal of selling 60 vehicles in the national market in 2022. 2017% 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 50 vehicles per year. 

Unit in São Paulo had already been paralyzed

The factory in Jacareí went through a stoppage in March, however, no dismissal was mentioned and at the time, Caoa Chery stated that the stoppage came due to the lack of electronic components that has compromised 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.

Therefore, it will lay off all workers in the production sector and more than 50% of administrative employees. According to Gonçalves, in a meeting held with representatives of the brand, the union was advised that the factory in São Paulo will be suitable for the production of electric and hybrid vehicles in 2023.

Caoa Chery enters into negotiation for compensation of employees

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

Regarding the dismissal of employees, the company claims to be negotiating with representatives of the Metallurgists Union of São José dos Campos and region so that compensation packages can be defined for employees. 

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