Mercedes-Benz halts production in Eastern Cape – Will employees be paid?
The current C-Class range has been built in East London since 2021 for the local market and export. Picture: iStock
Mercedes-Benz South Africa (MBSA) has labelled the suspension of production in the Eastern Cape as a 'standard procedure'. However, employees will not have downtime during the period and will be compensated.
Thato Mntambo, the company's General Manager for Corporate Affairs, told The Citizen that production will be stopped from 24 June 2025 to 30 July 2025, as the plant will undergo a planned non-production period.
'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.'
What will happen to Mercedes-Benz employees?
The East London plant employs 2 500 people, and it is understood that many of them will undergo training and upskilling programmes during the period.
'Employees of MBSA have also been appraised and will be undertaking a variety of training and upskilling programmes during the period and compensated based on the provisions of the collective bargaining agreements of the National Bargaining Forum (NBF),' said Mntambo.
ALSO READ: Concern about auto industry jobs
Did the US's 25% tariff play a part?
Mercedes-Benz South Africa stated that the 25% tariff on imported cars announced by US President Donald Trump played no role in the company's decision to halt production.
'We are continuously assessing the impact of the US tariffs introduced. We kindly ask you for your understanding that we won't comment further,' said Mntambo.
The US is a significant customer for C-Class cars manufactured in East London. The current C-Class range has been built in East London since 2021 for the local market and export.
Retrenchments at the plant
The news of production being halted comes a year after Mercedes-Benz retrenched 700 employees in the province.
Employees were left stranded as MBSA announced its intention to reduce production from three daily shifts to two due to declining global demand for its C-Class sedan.
More than 90% of the East London plant's output was for export, mainly to Europe, Asia and North America.
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