Rumours continue to swirl around the fate of Mercedes-Benz’s East London manufacturing plant, a cornerstone of the Eastern Cape economy.
Declining sales and exports of the locally built C-Class have cast doubt on its viability, with naamsa CEO Mikel Mabasa warning that closure could turn KuGompo City into an “economic ghost town.”
The sharp drop in exports to the United States has been a major blow. Tariffs imposed by the Trump administration saw C-Class exports to the US fall by around 80% in 2025. As half of local production is usually destined for that market, the slump translated into a 28% year‑on‑year decline in overall output.
Speculation has mounted about possible partnerships or even a sale of the plant. Chery was initially linked, but has since committed to Nissan’s Rosslyn facility. Attention has shifted to GWM and Geely. Bloomberg recently suggested GWM could be interested, while Geely — already a global Mercedes partner — has not ruled out involvement.
Sylvia Chang of Geely Auto South Africa commented: “We remain committed to long term and sustainable local investment,” though she stopped short of confirming or denying interest in the East London facility.
Mercedes-Benz South Africa responded with an official statement emphasising its history and ongoing evaluations:
“Mercedes-Benz South Africa’s 67 year history in the country demonstrates our commitment to running a sustainable business… We wish to clarify that as part of our global business approach; we regularly assess our operations to ensure long term sustainability and competitiveness… No decision has been made on the future of the East London manufacturing plant.”
GWM had not issued a comment yet.
Staff Writer
Reporting from the front lines of the automotive industry, delivering expert analysis and the technical updates that drive the South African motor sector forward.
