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Closure of the automotive factory in Itatiaia rekindles uncertainties about jobs, low sales, and the future of a strategic industrial structure, while a Chinese automaker negotiates to take over the space and transform the unit into a new production base in Brazil.
After about ten years of industrial operation in the country, Jaguar Land Rover is moving towards ending national production in Itatiaia, in the south of Rio de Janeiro, scheduled for July 2026.
The decision puts 371 direct jobs in uncertainty and occurs while the Chinese Chery Automobile negotiates to take over the unit to manufacture models of Omoda & Jaecoo.
In the Rio de Janeiro factory, the last Discovery Sport and Range Rover Evoque planned for the assembly line have already been produced, according to Quatro Rodas.
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The ready vehicles should be sent to dealerships by mid-July, ending the brand’s industrial phase in Brazil.
Contacted by the publication, Jaguar Land Rover stated that production was proceeding normally in June, according to the company’s operational planning.
The company also stated it had no “additional information” to share about the process.
End of Land Rover production in Itatiaia
Inaugurated in 2016, the Itatiaia unit marked Jaguar Land Rover’s first productive factory outside the United Kingdom.
At that time, the project represented one of the most relevant automotive investments in Rio de Janeiro and sought to strengthen the brand’s presence in the Brazilian market.
Within the strategy adopted by the company, the nationalization of premium models like the Range Rover Evoque and the Discovery Sport played a central role.
Over the years, however, the operation lost strength due to low volumes and changes in the brand’s global positioning.
According to CNN Brasil, Jaguar Land Rover will continue to be present in the country through imported vehicles.
The difference is that the company will no longer maintain the same industrial chapter open in Itatiaia, where the national assembly of SUVs operated.
The commercial performance helps explain the automaker’s decision.
Between January and May 2026, Discovery Sport and Range Rover Evoque totaled only 264 registrations in Brazil, a volume considered insufficient to sustain a dedicated manufacturing operation.
In addition to reduced sales, the factory operated under the SKD regime, where bodies arrive painted and partially assembled.
In this format, the local stage focuses on the completion of the vehicles, with less industrial complexity compared to a more nationalized production.
Although the model limited the plant’s impact on the local supplier chain, the structure maintained specialized labor.
The unit also preserved a production base installed in an important region for the automotive sector in Rio de Janeiro.
Jobs at the Itatiaia Factory
The future of the workers has become the most sensitive point of the transition.
According to the Metalworkers Union of Itatiaia and Porto Real, the plant generates 371 direct jobs, and the employees continue in specialization courses while awaiting a decision on the continuity of the unit.
Bruno Mendonça Streva, administrative director of Sindireal, told Quatro Rodas that Jaguar Land Rover maintains a current collective agreement.
Also according to the director, the company continues to fulfill the labor obligations provided during this period of uncertainty.
For the union, the main concern is to obtain guarantees that preserve jobs in case negotiations with a new manufacturer progress.
The entity seeks to prevent the change of command from resulting in a significant loss of jobs in the region.
So far, the available information does not confirm mass layoffs nor indicate how many employees could be absorbed by a potential new operation.
Therefore, the labor risk remains linked to the outcome of the negotiations and the production model that could replace the current assembly of Land Rover SUVs.
Chery Negotiates Factory for Omoda & Jaecoo
Among the groups interested in the Itatiaia unit, Chery Automobile appears as the main candidate to take over the structure.
The plan under discussion involves installing the production of the Omoda & Jaecoo brands at the location, expanding the Chinese industrial presence in the Brazilian market.
On June 12, 2026, CNN Brazil reported that representatives from the Itatiaia City Hall and the Government of the State of Rio de Janeiro had already started talks with Chinese executives.
The meetings addressed the industrial transition and the necessary conditions to enable the occupation of the factory.
The agenda of the conversations includes tax incentives, contract review, and regulatory conditions to allow the arrival of the new operation.
Quatro Rodas also reported that the Itatiaia City Hall held a virtual meeting with Chery representatives on Friday (12).
This meeting addressed the purchase of the factory and adherence to local tax policies.
The negotiations also involve the State Government of Rio de Janeiro and adjustments with the Legislative Assembly, especially around tax issues.
According to CNN Brazil, the authorities’ goal is to avoid a long period of inactivity at the plant.
The maintenance of the economic activity generated by the automotive complex also appears as a central point in the discussions.
Chinese production could reach 100,000 vehicles per year
For the Chinese project to advance, the factory’s structure will need to undergo adaptations.
The strategy attributed to Chery foresees a shift to CKD production, a format in which processes such as body assembly and painting are carried out on-site.
With this model, the operation would gain greater industrial complexity compared to the system used by Jaguar Land Rover in Itatiaia.
The change would also bring the unit closer to more complete production within the national territory.
According to Quatro Rodas, the initial adaptation of the plant would accommodate up to 87,000 vehicles per year.
The discussed plan foresees a capacity close to 100,000 units annually starting from the second half of 2027.
The plan includes the nationalization of the Omoda 4 and could make room for other models from the Omoda, Jaecoo, Lepas, and Jetour brands.
If the strategy is confirmed, the factory could serve both the Brazilian market and neighboring countries.
CNN Brazil pointed out that the location, workforce, and logistics of the unit are relevant factors for the occupation of the plant by Chinese brands.
These elements weigh in because the factory already has an installed structure in a region with an automotive tradition.
Even with advanced negotiations, the transfer of the factory still depends on definitive confirmation.
The continuity of jobs is also not assured by the available information, which keeps workers, the union, and authorities waiting.
Will the potential arrival of Omoda & Jaecoo be enough to preserve the workers and transform Itatiaia into a new hub of Chinese production in Brazil?
