Mercedes-Benz Plans to Share South Africa Plant with Great Wall Motor to Counter Tariff Pressure

According to Bloomberg, Mercedes-Benz is considering sharing its manufacturing plant in East London, South Africa, with Chinese automaker Great Wall Motor to enhance operational viability and mitigate the impact of U.S. tariff hikes. Sources familiar with the matter said the two companies have already held talks on joint production, and Great Wall has submitted a proposal to the South African government to begin local manufacturing. Mercedes-Benz stated it remains committed to maintaining the global competitiveness of its production base but declined further comment; Great Wall said it is exploring ways to expand its presence in the South African market. The collaboration has not yet been finalized and could also take other forms, such as contract manufacturing. The East London plant has exported C-Class vehicles to the U.S. since 1997, previously benefiting from duty-free access, but its profitability has come under pressure due to tariffs imposed during the Trump administration. If the partnership materializes, it would help alleviate overcapacity, reduce costs, and preserve approximately 2,400 jobs.