Chery is reportedly interested in the former Jaguar Land Rover (JLR) plant in Itatiaia, in the southern part of Rio de Janeiro state, as a possible production site for models from its Omoda and Jaecoo divisions. The company’s plans would depend in part on whether the facility’s existing tax incentives can be maintained, according to UOL Carros.
The state government has confirmed that a successor to JLR may receive the tax benefits granted to the British automaker, provided it meets legal requirements and takes on the associated contractual commitments. JLR ended production of the Discovery Sport and Range Rover Evoque at the site four months before the report.
The outlook for the industrial complex is being discussed during a period of political transition in the state. Industry representatives and the local union expect negotiations to be formalized after the new state government takes office following the elections.
Chery’s reported plan is to use the Itatiaia site independently of its corporate partnership with Caoa, which operates a factory in Jacareí, São Paulo state. The Itatiaia facility has been inactive for four years. Rather than the SKD process previously used by JLR, involving partially assembled vehicles, Chery is studying a move to CKD production, which would use more individual components and increase the regional value added.
Although the Itatiaia assembly lines have been idle since July, about 380 employees remain on full pay. They have been assigned technical retraining programs and postgraduate courses while the plant’s machinery remains intact. Preserving these skilled jobs is a key regional priority as the site’s future is considered.
Sources: Canaltech.