Mercedes-Benz South Africa (MBSA) has temporarily halted production at its assembly plant in East London, effective from June 24 to July 30, 2025. This planned non-production period is attributed to the company having sufficient stock to meet current demand[2][3]. The shutdown is seen as part of a broader trend in the South African automotive sector, where volume cuts have become more frequent over the past two years, impacting component manufacturers and their business sustainability[1].
The National Association of Automotive Component and Allied Manufacturers (Naacam) notes that these production halts are not unusual but reflect broader challenges in the sector, including market uncertainties and issues related to tariffs in the US[1]. The shutdown is a concern for the industry, as it comes at a time when the Eastern Cape has already experienced significant job losses across various sectors, including over 83,000 jobs in the first quarter of 2025[5].
Regarding the future of production, the National Union of Metalworkers of South Africa (Numsa) has expressed a lack of concern about the immediate suspension but noted that they have not received information on whether production will resume beyond the stated period[4]. This situation highlights the need for the government’s Automotive Production and Development Programme (APDP) to review and support component companies affected by these production fluctuations[1].
References
- [1] Assembly plant volume cuts happening more often, says Naacam as Merc suspends production
- [2] Mercedes-Benz Halts Production In Eastern Cape: Will Employees
- [3] Mercedes-Benz suspends South African operation
- [4] Numsa unfazed by Merc SA’s month-long production halt
- [5] Mercedes-Benz cuts jobs in Eastern Cape