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Factory Inaugurated With Promise of Thousands of Jobs Remains Unused in Jacareí, While City Hall Studies Auction of the Land After Partial Transfer to Another Automaker. Situation Brings Economic Impact and Expectation for the Local Population.
The relationship between the city hall of Jacareí, a city in the interior of São Paulo, and the automaker CAOA Chery took on new contours this week, with the municipal administration announcing measures to regain control of the area where the factory has been inactive since 2022.
The impasse focuses on the future of the space, donated by the city hall to the automaker, which was presented at the time as one of the largest industrial projects in the national automotive sector, but currently remains without productive activities.
According to a report from G1 published this Saturday (26), in the original announcement made in 2011, the city hall of Jacareí formalized the donation of the land to Chery Automobil Co. Ltd., in addition to granting tax incentives and investments in infrastructure.
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The project anticipated the generation of over 3,000 direct jobs, transforming the city into an automotive hub.
The factory was inaugurated in August 2014, after three years of construction and an approximate investment of US$ 400 million, marking the first unit of Chery in Brazil.
CAOA Chery is the result of a partnership between the Chinese automaker Chery, founded in 1997 in China, and the Brazilian group CAOA.
In 2017, the two companies formed a joint venture to produce and market vehicles in Brazil, combining Chinese technology and national management in operations carried out in factories like those in Jacareí and Anápolis.
Factory History and Job Expectations
Despite initial promises, the expectation of job creation did not materialize.
According to information from G1, in 2020, the number of registered employees was only 444, far from the announced target.
Also according to G1, in 2022 the factory was deactivated and 485 workers were laid off.
The last vehicle produced on site was the SUV Tiggo 3X, halting production and increasing the social and economic impact of the closure.
CAOA’s Entry and Operations in Brazil
In 2017, CAOA — a Brazilian group led by Carlos Alberto de Oliveira Andrade — began to control half of Chery’s operations in the country, in an attempt to reverse the unsatisfactory sales performance and strengthen the brand’s presence in the national market, according to G1.
Nevertheless, the Jacareí plant remained unused after 2022, unlike the unit in Anápolis (GO), which continues to operate and produce other models of the brand.
Pressure from the City Hall of Jacareí and Alternatives for the Land
According to information from Mayor Celso Florêncio (PL), the city hall sought contact with the management of CAOA Chery to define the future of the area, sending two official letters and requesting that the company present a plan to resume activities.
The municipality established a deadline of 45 days for the automaker to officially respond.
If there is no response or concrete proposal, the city hall plans to initiate the process of expropriation of the property, for which it is prepared to pay compensation.
The calculation of the compensation, according to an investigation by G1, was established at R$ 17.7 million, an amount that corresponds to the difference between the R$ 46 million invested by the city hall in infrastructure and tax incentives and the appraisal value of the complex, currently set at R$ 63.8 million.
The municipal administration emphasizes that the goal is to ensure the productive use of the space, preventing a strategic area from remaining idle.
Partial Transfer to Omoda Jaecoo and Auction of the Space
According to G1, in January 2024, a portion of the land was transferred to the Chinese automaker Omoda Jaecoo.
However, so far, there is no definition regarding the start of vehicle production by the new company, maintaining uncertainty regarding the full utilization of the industrial area.
In light of this scenario, the city hall of Jacareí announced that, if it manages to expropriate the property, it plans to auction the area with the goal of attracting new industries and generating jobs and income in the municipality.
The auction would be a strategy to stimulate local economic development and recover the public investments made in the original project.
Challenges for the Automotive Sector and Response from CAOA Chery
The shutdown of the CAOA Chery factory in Jacareí illustrates the challenges faced by municipal administrations that invest public funds and grant tax benefits in the expectation of boosting industrialization and creating jobs.
When agreements are not fulfilled or projects do not sustain themselves in the long term, cities like Jacareí seek alternatives to reduce losses and transform idle spaces into real development opportunities.
Industry experts highlight that, in a global scenario of rapid changes, technological adaptation, domestic market demand, and international competition are determining factors for the survival of factories in Brazil.
According to recent data from the National Association of Motor Vehicle Manufacturers (Anfavea), domestic vehicle production showed signs of recovery in 2025; however, the sector still faces challenges related to costs, logistics, and innovation.
According to a response sent to G1, CAOA Chery stated that it has not yet received official notification from the city hall and did not comment on plans to resume activities in Jacareí.
The company continues to produce other models at the Anápolis factory in Goiás but has not detailed any proposal for the use of the São Paulo unit.
While awaiting definitions, the population of Jacareí is closely observing the next steps of the authorities and the companies involved.
The fate of the space donated by the city hall and the fulfillment of the commitments made remain at the center of public debate about the future of economic and industrial development in the municipality.
In your opinion, should the city hall insist on auctioning the land of the Jacareí factory to attract new industries, or is there still room for an agreement with CAOA Chery? What paths can ensure that public investments yield more concrete results for the population?
Chineses são trambiqueiros. Não cumprem acordos. São caloteiros igual esse governo **** que está aí. E ainda tem **** que acredita nesse Luladrao. Vai pra china ó velho Lula caduco, ultrapassado . Socialismo é pra ****.
Vai tomar o remedinho tarja preta que tu esqueceu !!!
Vim reclamar do site .. muito poluído visualmente e cheio de propaganda. Essa da 7K fica no meio da tela por segundos, o que torna a leitura uma experiência ruim.
PERFEITO, eu não tenho mais saco pra ficar fechando propaganda inútil, já caio fora e vou ler em outro site menos pente…lho e poluído !!! Os caras fazem de tudo pra dificultar a vida dos outros, do que adianta ficarem enchendo de propaganda e o sacodo leitor, se não me interessa o produto, não existe vendedor que vai me vender aquilo que eu não quero !!!!
Tão **** quanto a Caoa Cherry! Chinês é pior que brasileiro, trambiqueiro, ****, sem palavra, e ****! Merece viver refém de Xin gin Ping. Lula deve ser presidente da China. Pelo menos, nos deixa em paz
Vai tomar o remedinho tarja preta que tu esqueceu !!!
Se tirar uma foto do lula pelado, tú sai
grudado no meio das bolas do saco dele. Seu demente.kkkkk
Mais um **** XUPADORdeBANDIDO e mamador do leitinho azedo do ****PORCO, se manifestando aqui. CADEIANELE Xandão !!!