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Mercedes Mulls Sharing South Africa Plant With China’s GWM

Prinesha Naidoo, Loni Prinsloo
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Mercedes-Benz is in talks to share its South Africa manufacturing plant with China’s Great Wall Motor, aiming to improve the facility’s financial sustainability amid rising US trade tariffs. The proposed partnership would involve co-manufacturing at Mercedes’ East London plant, with discussions currently private and no official confirmation from either company. Great Wall Motor has submitted a proposal to South African trade officials, signaling strong interest in local vehicle production to expand its global manufacturing footprint. The move reflects broader industry shifts as automakers seek cost efficiencies and regional diversification to mitigate trade barriers and supply chain risks. If finalized, the deal could strengthen South Africa’s automotive sector while helping both firms optimize production capacity and reduce operational costs.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Mercedes-Benz Group AG is considering sharing its manufacturing plant in South Africa with Great Wall Motor Co., a move that could boost the facility’s viability as US trade tariffs take effect, people familiar with the matter said.The luxury carmaker and Chinese firm are in talks about co-manufacturing at the factory in the port city of East London, according to the people who asked not to be identified because the discussions are private. Representatives for GWM have presented a proposal to senior officials at South Africa’s Department of Trade, Industry and Competition outlining the company’s interest in producing vehicles there, one of the people said.

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Source: Bloomberg Technology

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