Mercedes-Benz South Africa explains reasoning behind temporary East London plant closure
Mercedes-Benz has temporarily halted production at its East London plant.
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Mercedes-Benz South Africa (MBSA) confirmed that it has temporarily halted production at its assembly plant in East London.
The company told IOL that the planned non-production period, effective from June 24 to July 30, 2025, is a normal occurrence.
“An annual non-production period at the East London production plant is standard procedure and it is common cause for production plants to suspend production based on volume adjustments in the production programme,” an MBSA spokesperson said.
“Mercedes-Benz South Africa (MBSA) continually assesses and adjusts its production planning in alignment with global demand, market dynamics, and the company’s strategic objectives.”
However, the spokesperson would not be drawn on speculation that US tariff structures might have led to the production halt, stating that the company was continuously assessing the impact of the new US tariffs, but that it would not comment further on the matter.
South Africa is currently attempting to negotiate a more beneficial trade arrangement with the US after Donald Trump imposed a 25% blanket tariff on all automotive imports into the country.
The US is a major export destination for MBSA, which currently produces the C-Class sedan in both left-hand-drive and right-hand-drive guises for numerous world markets.
The facility currently employs 2,400 people, and produced a volume of 70,000 vehicles in 2024, making it one of the country’s top automotive exporters.
When asked previously, MBSA representatives could not confirm the percentage of its vehicles exported to the US, due to international sales reporting protocol.
South Africa’s top exports in 2025 are the Volkswagen Polo, Ford Ranger, Mercedes C-Class and BMW X3.
VWSA also temporarily shut its Eastern Cape plant in Kariega from April 14 to May 12, however this was in order to upgrade the factory for a new compact SUV model, which will be launched in 2027.
IOL