Caoa Chery to stop production in Brazil’s Jacareí due to shortage of parts

RIO DE JANEIRO, BRAZIL – Caoa Chery will temporarily suspend activities at its Jacareí (São Paulo) plant, where it assembles SUVs and sedans, due to a shortage of electronic components that has been compromising production in the automotive industry for the past year.

The stoppage will begin on March 12, when the contracts of production area employees will be suspended, the so-called ‘layoff’, for a month and a half.

In a note, the assembler reports that the measure aims to adjust the unit’s stocks of parts, whose supply was compromised by effects of the Omicron variant of Covid-19. It also announces that it will use the downtime to adapt the plant to the production of new models.

According to the region’s metalworkers union, the layoff of about 450 workers from the plant’s production sector was announced on Thursday, February 24, due to the global chip shortage.

An assembly of workers to discuss the temporary layoff is scheduled to take place this Friday, February 25, in the first shift. The union is demanding an agreement that provides job stability during and after the layoff.