According to a report by Bloomberg, Mercedes-Benz is considering sharing its manufacturing plant in East London with Chinese car company Great Wall Motor (GWM).
Bloomberg reported that the two companies are in discussions about co-manufacturing vehicles at the facility, citing people familiar with the matter who asked not to be identified because the talks are private.
According to the report, representatives from GWM have presented a proposal to senior officials at the Department of Trade, Industry and Competition outlining the company’s interest in producing vehicles at the plant.
Mercedes-Benz South Africa declined to comment directly on the talks but told Bloomberg that the company “strives to ensure that all its production sites remain globally competitive, are on an optimal operating point and adapted to new requirements whenever necessary”.
GWM South Africa said it is continuously exploring ways to expand its presence in the local market, but did not provide further details.
Bloomberg reported that no deal has been finalised and the companies could pursue alternative forms of cooperation.
The discussions come as the East London facility faces uncertainty over exports to the US. Mercedes-Benz has shipped the C-Class sedan from South Africa to the US since 1997 under the African Growth and Opportunity Act, which allowed duty-free access to the American market.
However, a 30% tariff on South African goods announced by Donald Trump last year threatened the economics of those exports, the report said. While the US Supreme Court suspended the duty earlier this year, Bloomberg reported that the administration plans to introduce a 15% global tariff on imports to the US.
According to Bloomberg, Mercedes is also considering using the site as a global hub to repurpose end-of-life batteries from passenger vehicles.
