Mercedes considers sharing South Africa plant with China’s GWM

Mercedes-Benz is considering allowing China’s Great Wall Motor (GWM) to usage its South African mill arsenic US commercialized tariffs unreality the site’s semipermanent viability.

The German automaker is successful discussions with GWM implicit imaginable co-manufacturing astatine its installation successful the larboard metropolis of East London.

According to a Bloomberg report, representatives from GWM person presented a connection to elder officials astatine South Africa’s Department of Trade, Industry and Competition outlining the Chinese company’s involvement successful manufacturing vehicles astatine the plant.

In an emailed connection to Just Auto, a institution spokesperson said: “Mercedes-Benz strives to guarantee that each its accumulation sites stay globally competitive, are astatine an optimal operating constituent and are adapted to caller requirements whenever necessary.”

The spokesperson added that the institution does not “comment connected speculations astir aboriginal merchandise portfolio and accumulation readying process”.

GWM South Africa said it continues to measure opportunities to grow its beingness successful the state but did not supply further details.

Talks betwixt the 2 companies are ongoing with nary statement finalised, though alternate forms of practice stay nether consideration.

Allowing different shaper to nutrient vehicles astatine the works could assistance code unused capacity, little operating costs and enactment jobs arsenic planetary carmakers look increasing contention from lower-cost imports from China and India.

Mercedes is simultaneously assessing whether the East London works could beryllium repurposed arsenic a planetary centre for processing end-of-life batteries from rider vehicles.

The installation has produced the C-Class sedan for export to the US since 1997.

Previously, the works benefited from the African Growth and Opportunity Act, which allowed vehicles exported from South Africa to participate the US duty-free.

However, the plant’s outlook changed aft President Donald Trump imposed a 30% tariff connected South African goods entering the US successful August past year.

Although the US Supreme Court suspended the measurement successful February, the medication is preparing to present a 15% planetary levy connected imports into the US starting this month.

Mercedes invested astir €600m ($694m) successful 2022 to upgrade the East London manufacturing facility.

"Mercedes considers sharing South Africa works with China’s GWM" was primitively created and published by Just Auto, a GlobalData owned brand.

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