More and more rumours are surfacing about the possible sale, or part sale, of Mercedes-Benz’s East London manufacturing plant.
The plant is an economic cornerstone of the Eastern Cape economy, but the decline in local sales and exports of the locally produced C-Class has jeopardised its viability. The situation is so dire that naamsa CEO Mikel Mabasa recently warned that the closure of the Mercedes-Benz plant would make an “economic ghost town” of East London (now KuGompo City).
The rapid decline in production at the Mercedes facility is due in part to the decline in exports of the C-Class to the United States (US) due to tariffs imposed on imports by the Trump administration.
Exports of the C-Class to the US fell by around 80% in 2025. As roughly half of locally built C-Class models are usually shipped to the US, this slump has driven an estimated 28% year‑on‑year decline in total production.
In light of this decline, the local and national media started to speculate about possible manufacturing partnerships or even an outright sale of the plant to a new brand.
The first brand to be mentioned in relation to the Mercedes plant was Chery, but they have subsequently entered into an agreement with Nissan to purchase their flagging manufacturing facility in Rosslyn, Pretoria. Chery is expected to take over the plant in mid-2026, but according to speculation they will only start manufacturing their new pick up – the Himla – in 2027.
Subsequently, GWM and Geely was mentioned in relation to the Mercedes-Benz plant. The former has recently made headlines again after Bloomberg speculated that they would be interested in the facility, while the latter is a global partner to and investor in Mercedes-Benz, one of the largest and most well-heeled of the Chinese brands and a new entrant to the South African market.
Dealerfloor approached Geely SA, GWM SA and Mercedes-Benz SA for comment.
Sylvia Chang of Geely Auto South Africa says that “we remain committed to long term and sustainable local investment,” but she did not confirm or deny their interest in the Mercedes plant.
Abongile Tyopo, Specialist: External Affairs, Stakeholder Engagement and Corporate Communications at Mercedes-Benz South Africa’s East London plant, responded with an official statement saying:
“Mercedes-Benz South Africa’s 67 year history in the country demonstrates our commitment to running a sustainable business in the country and to our valued stakeholders, suppliers, employees, customers and partners here.
“We wish to clarify that as part of our global business approach; we regularly assess our operations to ensure long term sustainability and competitiveness. These assessments are part of ongoing internal processes.
“This includes the continuous evaluation of our structures and operations to ensure long term sustainability and competitiveness.
“These evaluations are ongoing and form part of regular strategic discussions within the Mercedes-Benz AG Group.
“No decision has been made on the future of the East London manufacturing plant,” the statement concludes.
By the time of publication, GWM had not responded with comment.
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