Engineering News

Toyota South Africa Motors (TSAM) on Tuesday launched volume production of the new Corolla at its Durban plant.

The new model is the eleventh generation of this best-selling car.

TSAM invested R1-billion at its Durban plant, as well as in the development of its staff and the company’s parts supplier network, to enable manufacturing of the new Corolla in left- and right-hand-drive variants, said TSAM president and CEO Dr Johan van Zyl.

TSAM would no longer export the Corolla to Europe, as had been the case with the previous model, and would only serve the sub-Saharan market, he added.

Turkey would now supply the European market with the new Corolla.

Van Zyl told Engineering News Online production volumes for the local market should reach in excess of 12 000 units a year, as TSAM hoped to sell more than the roughly 1 000 units a month it sold of the previous Corolla.

TSAM was also confident of exceeding previous Corolla model export sale volumes in sub-Saharan Africa.

Van Zyl did not quantify these volumes.

He noted that the new Corolla had 50% local content, similar to the previous model, and that TSAM would work to increase this over the life-cycle of the vehicle.

SECOND INVESTMENT
TSAM’s R1-billion investment was the second to be announced in the current phase of capital expansion at TSAM, which started in 2012 with the opening of a R363-million new parts distribution centre in Gauteng.

The new round of investment followed a R8-billion programme, completed in 2008, in which TSAM increased its production capacity to 220 000 units a year.

In addition to the Corolla, TSAM produced the Fortuner sports-utility vehicle and Hilux bakkie in Durban, while also assembling a minibus taxi and a range of trucks.

Van Zyl said the 2014 Corolla was the first vehicle TSAM was manufacturing under government’s new Automotive Production and Development Programme.

He said it was important for TSAM to utilise this support programme to build its local supplier base and to stimulate job creation.

He also emphasised that “a stable environment was paramount in the production of vehicles”.

While last year had proved volatile, with the local industry faced with a seven-week strike, Van Zyl said all stakeholders had to work together to “create a stable work environment”.

This would ensure that the local arm of the Japanese vehicle manufacturer could act as a reliable export base for Europe and Africa.

“The decision to invest in the production of the new Toyota Corolla is one taken well in advance of the start of production, and one that considers the future economic prospects of South Africa and that of major Corolla export markets. We believe that despite the current economic slowdown and currency pressures, the South African-built Corolla will prove to be a good long-term investment,” noted Van Zyl.

He said the new Corolla sported “fresh new design”, as well as a number of new technologies.

One of these was a 1.4 l diesel engine, boasting the same power as some of its bigger siblings, while proving exceptionally frugal at the fuel pump.

The new Corolla would be available in South Africa later this month.