Mercedes-Benz Group is contemplating the idea of co-utilizing its manufacturing plant located in East London, South Africa, in partnership with China’s Great Wall Motors. Both parties have commenced preliminary discussions regarding the possibility of joint production; however, a conclusive agreement is yet to be finalized, and other avenues of collaboration may also be considered. Historically, Mercedes-Benz has benefited from duty-free exports of its C-Class sedans from South Africa to the United States. Yet, the recent surge in U.S. tariffs has adversely affected the plant’s profitability. Despite the suspension of certain tariffs, the trade climate remains unpredictable. In 2022, Mercedes-Benz invested in modernizing the plant. Should the collaboration materialize, it is expected to alleviate overcapacity issues, curtail costs, and safeguard employment opportunities. This potential partnership might adopt an Original Equipment Manufacturer (OEM) model, wherein Great Wall Motors would manufacture vehicles locally in South Africa to cater to the regional market demands of its brands. Furthermore, Mercedes-Benz has plans to transform the plant into a global center for the recycling and repurposing of retired batteries, in response to the evolving industrial landscape and trade dynamics.