Ministers in Lula's government, such as Fernando Haddad and Luiz Marinho, are alarmed by the fiscal incentives granted for assembling electric cars at a factory visited by the president and Geraldo Alckmin in Ceará. They view it as a revenue waiver amid a tight budget, without substantial national industry growth. Critics argue the investment fails to create enough jobs to warrant the public policy benefit.
Recently, President Luiz Inácio Lula da Silva and Vice President Geraldo Alckmin visited a factory in Ceará focused on assembling electric cars, which receives government fiscal incentives. However, this decision has caused unease among some petista ministers in the Esplanada dos Ministérios. According to interlocutors who spoke with them on the matter, Fernando Haddad from the Fazenda and Luiz Marinho from Labor and Employment are “de cabelos em pé” with the incentive model adopted.
For the Fazenda team, it represents another revenue waiver requiring compensation in an already tight budgetary environment. Critics note that the venture does not drive expansion in the national automotive industry, thereby limiting job creation. Rather than fostering broad growth, the investment would mainly support local assembly without deeper impacts on the production chain.
This internal friction mirrors broader debates on fiscal policy in the automotive sector. While the government aims to attract investments in electric vehicles, internal voices question whether the public benefits match the anticipated returns in economic development and job generation. Lula and Alckmin's visit to the site underscored official support for the initiative but revealed divisions at the executive's top levels.