Mercedes-Benz considering joint car production with China’s Great Wall in South Africa
German car manufacturer Mercedes-Benz Group AG is negotiating with by the Chinese company Great Wall Motor Co. to share a plant in East London, South Africa. This is reported by Bloomberg.
GWM representatives submitted a proposal to the South African Ministry of Trade and Industry, expressing their readiness to produce cars locally. The sharing of capacities will help reduce operating costs and preserve jobs for 2,400 workers, especially against the backdrop of increased competition from cheap imported cars.
The need to adapt production is due to changes in US trade policy. Mercedes has been shipping the C-Class sedan from South Africa to the US since 1997, using the Africa Growth and Opportunity Act, which allowed duty-free exports. The Trump administration’s new global tariffs are calling into question the economic viability of the plant.
Mercedes’ current production line allows it to integrate the assembly of other brands’ cars, but GWM would have to build its own welding and body shop. The German carmaker is also considering turning the site into a global hub for recycling electric vehicle batteries. The final structure of the partnership has not yet been finalized, and the companies are exploring various options for cooperation.
