en.Wedoany.com Reported - The municipal government of Jacareí, São Paulo State, Brazil, has initiated expropriation proceedings for the Caoa Chery factory. The plant has been closed since 2022, and the city government had given the automaker a 12-month deadline to submit a plan to reactivate the factory, but the company failed to present a substantive proposal.
The city government has sent an official letter to the factory owner, Caoa Group, notifying them that internal procedures will be advanced to draft and issue an expropriation decree. The land for the plant was originally allocated to Chery, with commitments to promote economic development, create jobs, and sustain industrial activity.
In June 2025, the city government sent a letter requesting clarification on the factory's future. The plant began production in 2014. The city government subsequently notified Caoa Group (which established a partnership with Chery in 2017) that the land allocation could be revoked and expropriation initiated, initially granting a 45-day deadline to submit a reactivation plan. At Caoa Chery's own request, this deadline was extended to one year.
Despite initiating the expropriation proceedings, the Jacareí city government stated it remains open to analysis if there are concrete plans genuinely considering the effective resumption of industrial activity in the region.
The Jacareí factory was Chery's first production base outside China. With the establishment of Caoa Chery, production of the Chinese brand's models was concentrated at the Anápolis, GO plant in Goiás State. The company had promised to retrofit the São Paulo factory after three years to produce electric vehicles. Once the expropriation is completed, the city government can seek new industrial projects for the area near the Dutra highway.
