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Toyota files R6.5bn South Africa flood damage lawsuit – Business Day

20th June 2025

By: Bloomberg

  

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Toyota Motors Corp. has brought a lawsuit for R6.5-billion in a South African court for 2022 flood damages that shuttered its plant near Durban, Business Day reported.

The claim against Transnet SOC Ltd., the KwaZulu-Natal Department of Transport and eThekwini Municipality has been brought in the high court in Durban by Toyota South Africa Motors’ insurer, Tokio Marine & Nichido Fire Insurance.

It alleges that the floods, which closed the Prospecton plant for four months, cost the company about 4.5 billion rand in plant repairs and rehabilitation and more than 2 billion rand in business interruption, the newspaper reported. The suit, which claims interest on the sum, alleges that by failing to maintain waterways and drainage systems that carried the floodwater, the three defendants shared responsibility for the damage.

“A successful case on behalf of Toyota could encourage others to seek compensation from municipalities and state-owned enterprises whose failure to deliver causes them losses,” Business Day cited a lawyer unconnected to the case.

Immediately after the flood, Toyota predicted a 33% drop in planned vehicle production in 2022 and potential sales revenue losses of over R27-billion, the newspaper reported.

Prospecton builds the Hilux pickup truck, the Fortuner SUV, Quest and Corolla Cross cars, HiAce minibuses and Hino trucks and buses. About half of production is exported, mainly to Europe.

The 2022 KwaZulu-Natal floods and landslides were declared a national disaster and left more than 400 people dead.
 

Edited by Bloomberg

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