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Mercedes-Benz halts production in Eastern Cape – Will employees be paid?
Mercedes-Benz halts production in Eastern Cape – Will employees be paid?

The Citizen

time01-07-2025

  • Automotive
  • The Citizen

Mercedes-Benz halts production in Eastern Cape – Will employees be paid?

The US is a significant customer for the Mercedes-Benz 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. 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. NOW READ: Tyre giant hits the brakes: Numsa laments Goodyear closure affecting 900 jobs

Mercedes-Benz South Africa explains reasoning behind temporary East London plant closure
Mercedes-Benz South Africa explains reasoning behind temporary East London plant closure

IOL News

time01-07-2025

  • Automotive
  • IOL News

Mercedes-Benz South Africa explains reasoning behind temporary East London plant closure

Mercedes-Benz has temporarily halted production at its East London plant. Image: Supplied 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. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 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 Get your news on the go, click here to join the IOL News WhatsApp channel.

Mercedes-Benz South Africa Launches Comprehensive 7-Year/140,000 km Service Plan
Mercedes-Benz South Africa Launches Comprehensive 7-Year/140,000 km Service Plan

IOL News

time06-06-2025

  • Automotive
  • IOL News

Mercedes-Benz South Africa Launches Comprehensive 7-Year/140,000 km Service Plan

Introducing PremiumDrive Exclusive – Mercedes-Benz South Africa's new 7-year / 140,000 km care and maintenance plan for unmatched convenience and confidence on every journey. Introducing PremiumDrive Exclusive Care: A New Era in Service Coverage. PremiumDrive Exclusive Care service plan, offering a comprehensive 7-year/140,000 km service and maintenance plan. Additional complimentary tyre and rim insurance when selecting PremiumDrive Exclusive Care. Exclusive offers across the Mercedes-Benz Range. Owning a Mercedes-Benz is knowing that every journey comes with something more. It's that quiet confidence when you start the engine. It's that reassurance that, no matter where the road leads, you're backed by the very best. But what if that feeling didn't stop with the drive itself? Mercedes-Benz South Africa proud to introduce the all-new PremiumDrive Exclusive care service and maintenance plan, offering a comprehensive 7-year / 140,000 km contract that ensures peace of mind and unrivalled convenience for owners. Introducing PremiumDrive Exclusive Care: A New Era in Service Coverage We are thrilled to launch our new PremiumDrive Exclusive Care service and maintenance plan. This 7-year / 140,000 km service and maintenance contract is designed to provide long-term peace of mind for Mercedes-Benz owners, ensuring that their vehicles remain in peak condition for years to come. The PremiumDrive Exclusive Care plan covers a wide range of services, from regular maintenance to essential repairs, all while guaranteeing the highest level of care from authorised Mercedes-Benz technicians. Every repair is handled with genuine parts and expert maintenance, and when the unexpected happens, you're never left without a solution-because true confidence lasts far beyond the road. This new service and maintenance offering reflects Mercedes-Benz's unwavering commitment to customer satisfaction and underscores our dedication to delivering an unmatched ownership experience which will also include the following benefits: Roadside Assistance Whether it's a flat battery, lost keys, or something more serious? Whatever the issue, expert help is always a call away-24/7, wherever you are. Mobility Services Life shouldn't stop when your car needs attention. Whether it's a replacement vehicle or alternative transport, we'll make sure you keep moving. Stand By Me Services Stranded late at night or in an unfamiliar place? If you ever feel unsafe while waiting for help, we'll send security services to your location to be there with you until assistance arrives. Over and above the mentioned benefits, customers who opt for the PremiumDrive Exclusive Care plan will also receive complimentary tyre and rim cover *. Keep your journey smooth with comprehensive cover for tyre and rim repairs or replacements*. Over and above the innovative PremiumDrive Exclusive plan mentioned above, we are also offering a refined version of the popular 5-year Service & Maintenance plan, called PremiumDrive Comfort Care. "At Mercedes-Benz South Africa, we are committed to creating Mercedes Moments that truly matter, especially during life's unexpected and challenging situations. Our focus is always on delivering the highest customer relevance, offering peace of mind with every journey. That's why we're enhancing our service commitment with a new 7-year/140,000km service and maintenance plan offering—an upgrade that ensures your experience is one that far exceeds expectations." Claudius Steinhoff Executive Director MBC & Co-CEO MBSA. Whether you're looking for a compact car that delivers style and efficiency or a spacious SUV built for adventure, Mercedes-Benz has something for every driving preference. Customers can also enjoy flexible financing options, ensuring that owning a Mercedes-Benz is more accessible than ever before. To celebrate the launch of the new service plans, Mercedes-Benz South Africa has prepared exciting offers for all fans of the three-pointed star, follow the links below to view these in more detail. View our current offers as well as the above-mentioned Service and Maintenance Plans for more information. "Our new 7-year / 140 000km maintenance and service plan redefines luxury in automotive care. It's a testament to our dedication to exceptional customer experiences, offering peace of mind and reinforcing our commitment to innovation and customer loyalty." Alexandra Boavida VP Sales and Marketing Mercedes-Benz South Africa. 'We are proud to offer our customers peace of mind with our new service and maintenance plan offerings—an upgrade that goes beyond expectations, ensuring that their Mercedes-Benz stays in top condition for longer." Shania Govender General Manager Customer Services & Technical Operations. Welcome to a new standard of care from Mercedes-Benz South Africa. Please visit Mercedes-Benz South Africa for more information on a variety of our offers.

uLuntu Lwethu: The Stories That Shape Us
uLuntu Lwethu: The Stories That Shape Us

IOL News

time26-05-2025

  • Automotive
  • IOL News

uLuntu Lwethu: The Stories That Shape Us

When people come together behind a brand, it builds a legacy, but when people come together to share their journey authentically – it builds more than just cars, it builds communities too. Mercedes-Benz South Africa (MBSA) is proud to shine a spotlight on their community, the community behind the brand, through the compelling six-part docuseries, uLuntu Lwethu ('Our Community' in isiXhosa). As a brand that is conventionally defined by its products and prestige, uLuntu Lwethu focuses on the human stories behind the brand, highlighting its six-decade-long contribution to society and transformation in South Africa, particularly in East London where the manufacturing plant is based. MBSA understands that meaningful transformation starts with people. It is in the meaning of the docuseries title that it is a community of people coming together, working together to build and produce the world's most desirable cars. This collaborative project is testament to highlight the many incredible stories of people who are impacted and transformed by the footprint of Mercedes-Benz. It demonstrates that 'Our stories are not only important, but they are beautiful, reflects MBSA employee Sivuyile Tafeni.

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