Transportation

Mercedes Weighs Partners for South Africa Plant as US Levies Hit

The C-Class is a comparatively low-margin model for Mercedes.

Photographer: Eric Thayer/Bloomberg

Mercedes-Benz Group AG is considering allowing a rival to share its South African plant after the US ended a key trade pact, a move that has raised questions over the viability of the plant, according to people familiar with the matter.

The luxury carmaker has exported the C-Class sedan from South Africa to the US since 1997, taking advantage of the African Growth and Opportunity Act, which eliminated tariffs on cars imported from the country. That changed when the Trump administration imposed a 30% duty on imports from the nation, upending the economics of the site in the South African city of East London.