https://www.engineeringnews.co.za

Toyota’s Van Zyl warns of closure ‘domino effect’

20th March 2015

By: Irma Venter

Creamer Media Senior Deputy Editor

  

Font size: - +

The closure of any vehicle manufacturer’s operations in South Africa will be “a total disaster”, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl.

He is also the president of the National Association of Automobile Manufacturers of South Africa (Naamsa).

He says South Africa’s automotive manufacturing industry is “very much like” the industry in Australia, which is set to close down after 2017, owing to decreased government support, rising costs and shrinking volumes.

“We can’t lose anyone. If one [manufacturer] leaves it will have a domino effect.”

Van Zyl says it will be impossible to sustain the South African components supplier base, should vehicle production volumes deteriorate owing to the departure of any single manufacturer.

“Slowy, but surely, things will just die.”

While vehicle manufacturers do not use the same wiring harness, for example, the number of manu- facturers present in South Africa ensures sufficient shared volume for a wiring harness producer to set up shop locally.

Van Zyl emphasises that the closure of any local plant will not see the remaining vehicle manufacturers gain market share, as hinted by some market commentators.

Car and bakkie producers in South Africa include Toyota, Volkswagen, Mercedes-Benz, BMW, Ford, Nissan and General Motors.

TSAM produces the Corolla, the Fortuner, the Hilux, the Corolla Quest, the Hino truck range and the Quantum minibus at its KwaZulu-Natal facilities.

New Hilux
TSAM will indeed produce the new-generation Hilux pick-up at its Durban plant, with the bakkie set to enter the local market in the first quarter of next year, confirms Van Zyl.

The new Hilux will be exported to Africa, Europe and Russia, as is the case with the current pick-up.

TSAM’s Durban plant has the capacity to produce 220 000 vehicles a year, with around 120 000 units of this capacity allocated to the Hilux.

Van Zyl says this number can be ramped up for the new pick-up model.

The Hilux was South Africa’s top selling vehicle in 2014, at 37 561 units.

TSAM built 155 000 vehicles last year, excluding trucks.

The local arm of the Japanese group also exported around 70 000 vehicles, with the overwhelming majority of these being Hilux bakkies.

A small number of Corollas were exported to Africa.

Van Zyl expects TSAM exports to decline to around 65 000 vehicles this year.

Africa will see a decline in vehicle take-up from TSAM owing to regu- latory changes in Algeria, Nigeria and Angola, with lower oil prices also taking an economic toll on many African countries.

Sanctions will continue to mar Russia’s new-vehicle demand.

Van Zyl expects the 2015 South African new-vehicle market to remain flat over that of 2014.

Labour Discussion
South Africa’s automotive industry is set to return to the negotiating table next year, with the current three-year wage deal coming to an end in 2016.

Van Zyl says the last two years saw 13 weeks of lost vehicle production owing to strikes, not only in the automotive industry but also in related sectors.

“There is no way we can do that again. That was an incredibly bad period.”

He says Naamsa is already locked in talks with unions on how to approach next year’s negotiations in a more productive manner.

“If we cannot change the process, we must at least change the mindset. We can be more cooperative and less disruptive – on both sides. Business and labour need each other.”

Europe Calling
Toyota announced in March that Van Zyl’s portfolio has been expanded to include Toyota Europe.

He will remain president and CEO of TSAM (and Naamsa), but will also become president and CEO of Toyota Motors Europe.

"This is a fantastic career opportunity and I am very excited about this new challenge. However, I want to reiterate that my home will always be South Africa and I remain committed to the development of the industry in this country," says Van Zyl.

The 57-year-old will now, on a rotating basis, spend one week in Japan, one week in South Africa, and two weeks in Europe, where Toyota has eight manufacturing sites.

Van Zyl notes that TSAM has “competent management structures” to ensure that the local company is “not leaderless” when he travels abroad.

“I have huge trust in the South African structures.”

Van Zyl will start in his new position on April 1.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.114 0.167s - 167pq - 2rq
Subscribe Now