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No date yet for start of production – Toyota SA

Image of the flooded Toyota plant in Durban in April 2022

Part of TSAM's Prospecton site in Durban shortly after the April 12 floods

20th April 2022

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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The flood damage to the Toyota assembly plant in Prospecton, Durban, has not yet been fully quantified, with a forecast on the resumption of production to be provided once all the appropriate assessments have been completed, says Toyota South Africa Motors (TSAM).

Production was suspended following citywide flooding earlier this month.

TSAM notes that the plant had “numerous upgrades” following the 2017 floods, as a countermeasure to similar future events.

These included the installation of pumps and piping within the plant to disperse water, as well as regular maintenance of the water-drainage channels surrounding the facility. 

These measures were, however, “no match for the mass of water that breached the facility when the banks of the Mlazi river broke”.

“Our approach and response is to prioritise our staff and their families, ensuring that their safety and wellness comes first,” says TSAM president and CEO Andrew Kirby.

“This will then be followed by the communities around us, including our extended Toyota family – our dealers and suppliers. In fact, we have already put plans in place to make a sizeable donation to a nongovernment organisation to assist local communities.”

From a sales perspective, Toyota confirms that the disaster has impacted on its immediate ability to deliver vehicles. 

As the longstanding sales leader in South Africa, with a 25.4% market share in South Africa in 2021 (which means one in every four new vehicles sold in the country is a Toyota), the disruption within the Japanese car maker’s local network is set to have a significant impact on domestic new-vehicle sales in April, as well as on export numbers from South Africa.

TSAM produces the Corolla Cross, Fortuner, Hiace Ses’fikile minibus and Hilux bakkie for the local market, while some models are also exported – most notably the Hilux. The Prospecton operation also hosts the Hino truck assembly plant.

TSAM sold 15 000 new vehicles in South Africa in March alone, with both its exports and imports, such as the popular Starlet, moving through the Port of Durban, which also suffered damage in the floods. 

TSAM’s new-vehicle exports reached 6 837 vehicles last month.

Of the total number of water-damaged vehicles assessed following the flooding, 500 units have passed inspection and will be retailed, says TSAM.

The remainder – not quantified – will be scrapped.

TSAM sales and marketing senior VP Leon Theron says customers whose vehicles were destroyed will be prioritised.

“This will be easier to facilitate with imported vehicles as these are sourced from other plants. 

“Of course, there is a pipeline for all imported vehicles, but we will try to increase this supply in order to make up for the units lost.”

The news is less positive for customers of locally produced vehicles.

“Locally-produced models, such as the Hilux, are more of a challenge and we will be personally reaching out to customers to inform them of the delays in production,” says Theron.

 

Edited by Creamer Media Reporter

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