City's lifeline at risk

EAST LONDON: FACES 'GHOST TOWN' WARNING IF MERC GRINDS TO A HALT >>>> This follows the US imposing 30% tariffs on imports from SA.

- Roy Cokayne

East London could become a ghost town if Mercedes-Benz South Africa (MBSA), an anchor of the local economy, comes to a grinding halt.

This stark warning came from Mikel Mabasa, CEO of the automotive business council Naamsa, on Wednesday during his address at the DealerCon conference in Sandton.

His warning came against the backdrop of his statement that the Minister of Trade, Industry and Competition (dtic), Parks Tau, and some senior dtic officials, will be in the US this week for engagements with their US counterparts on the newly imposed US import tariffs.

"We remain hopeful that a deal between the US and South Africa can still be negotiated to cushion and help insulate the impact of the tariff increase on the livelihoods of towns like East London," said Mabasa.

"East London could potentially face the burden of being classified as a ghost town if the Mercedes-Benz plant, an anchor of that local economy, comes to a grinding halt."