GWM is reportedly in discussions with Mercedes-Benz SA (MBSA) to share the latter’s assembly factory in KuGompo City, which could boost the viability of a plant that has produced Mercedes vehicles since 1958.
According to Bloomberg, the luxury carmaker and Chinese firm are in talks about co-manufacturing, quoting sources who asked not to be identified because the discussions are private.
GWM representatives have presented a proposal to officials at South Africa’s department of trade, industry and competition outlining the company’s interest in producing vehicles there, one of the people told Bloomberg.
A deal hasn’t been finalised, and the companies could decide on alternative tie-ups, said the people. Mercedes is also considering using the factory as a global hub to repurpose end-of-life batteries from passenger vehicles, according to one of the sources.
Mercedes builds the C-Class at the coastal factory and exported it to the US duty-free under the African Growth and Opportunity Act (Agoa) until US President Donald Trump imposed a 30% tariff on South African imported goods in August.
The US Supreme Court suspended the duty in February, but Trump plans to introduce a new 15% global levy on imports this month.
In general we do not comment on speculations about future product portfolios and production planning processes
— Thato Mntambo, MBSA’s GM of corporate affairs
In June 2025 and July 2025, MBSA suspended vehicle manufacturing operations at the plant, which has built the current C-Class range since 2021 after a R13bn investment. More than 90% of production is exported, mainly to North America, Europe and Asia.
Even before the tariffs, the economic viability of the factory had been in question. In June 2024, the company retrenched about 700 of its approximately 3,200 employees because of falling global demand for the C-Class and cut daily production shifts from three to two.
According to motor industry body Naamsa, vehicle exports to the US dropped by 82% in the first half of 2025, nearly all of them C-Class models.
Responding to the reports, MBSA said its KuGompo City plant is focused on the production of the C-Class.
“Customer and market requirements are constantly changing. Mercedes-Benz strives to ensure that all its production sites remain globally competitive, are on an optimal operating point and are adapted to new requirements whenever necessary,” said Thato Mntambo, MBSA’s GM of corporate affairs.
“In general we do not comment on speculations about future product portfolios and production planning processes.”
GWM had not responded to Business Day’s request for comment at the time of publication.
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