Is Mercedes-Benz SA in trouble? Carmaker in talks with GWM to share factory

Mercedes-Benz South Africa (MBSA) is reportedly in discussions with GWM to co-manufacture vehicles at its East London assembly plant, a potential lifeline that could help keep the factory open. Mercedes-Benz builds the C-Class at the East London plant and previously exported the vehicles to the United States duty-free under the African Growth and Opportunity Act (Agoa). This changed in August last year when US President Donald Trump imposed a 30% tariff on South African exports to the US, dealing a blow to the country’s automotive sector.

The US Supreme Court suspended the duty in February 2026, although Trump is now expected to introduce a new 15% global tariff on imports later this month. Thato Mntambo, MBSA’s GM of corporate affairs, toldThe Citizen: “The Mercedes-Benz East London plant is focused on the production of the C-Class.” This is because most of the cars produced at the plant are exported, mainly to North America, Europe and Asia. “Customer and market requirements are constantly changing,” said Mntambo.

“Mercedes-Benz strives to ensure that all its production sites remain globally competitive, are on an optimal operating point and adapted to new requirements whenever necessary.” 2025 was a year of uncertainty for Mercedes-Benz, especially at the East London plant, withperiods when production was suspended. But the German luxury carmaker cited the production halt as “standard procedure”. Bloombergreported GWM representatives have presented a proposal to officials at South Africa’s department of Trade, Industry, and Competition (DTIC) outlining the company’s interest in producing vehicles there.

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The DTIC had not confirmed this toThe Citizenby the time of publishing. People close to the matter said the deal has not been finalised, and the companies could decide on alternative tie-ups. Should the deal fall through, Mercedes-Benz allegedly plans to turn the East London plant into a global hub to re-purpose end-of-life batteries from passenger vehicles, which Mntambo couldn’t confirm or deny.

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