Andrew Kirby
Toyota South Africa Motors (TSAM) has resumed operation of its catalytic convertor export line and will, in the next few days, also open the Hino truck assembly line. This follows extensive flooding at the Prospecton plant, in Durban, a month ago.
TSAM notes, however, that it will take some time for its main assembly lines – Hilux, Fortuner, Hiace, Corolla Cross and Corolla Quest – to reopen.
The local arm of the Japanese vehicle manufacturer expects to lose around 45 000 units in production, with these vehicles destined for both the local and export markets.
TSAM president and CEO Andrew Kirby says the organisation is implementing “a careful and systematic phased plan” to return the Durban facility to working condition.
He adds that the flooding “has been a tremendous setback for the company, but we have extensive insurance coverage. We are also fortunate that our parent company, Toyota Motor Corporation, is supporting us with all the cashflow challenges that we are likely to encounter.”
“We’ve created an internal slogan for our recovery, called ‘Rebuilding Better Together’,” says Kirby.
“This talks to how we all work together as one team to find a way of renewing and improving our site at the same time.”
“We’ve been through the process of cleaning, drying and flushing,” Kirby explains.
“Now, we are checking all of our equipment, repairing, powering up the control panels and having to order replacement parts where necessary. We are at a point where it’s not easy to predict when we would be able to start-up.”
Toyota global president Akio Toyoda has sent close to 60 top specialists and engineers from Japan to support the recovery of the TSAM plant.
TSAM notes that it is working closely with the City of eThekwini to address some of the infrastructural shortfalls in the area around the plant to prevent a reoccurrence of a similar disaster.
From a human resource perspective, the majority of Toyota employees fall under the National Bargaining Forum (NBF) and, as such, payment is governed by the rules of the NBF, whereby 50% of wages are paid when there is no work available.
However, TSAM says it is working to boost employee earnings by bringing in staff on a rotational basis to assist in clean-up activities; working with government to provide temporary financial relief measures; requesting financial institutions, with whom employees have loans, for a three-month payment holiday; and working with local nongovernmental organisations to use TSAM employees to provide community support following the widespread floods.
Employees who volunteer for such activities will be paid by TSAM.
TSAM sales and marketing senior VP Leon Theron emphasises that Toyota customers remain the company’s priority.
“We are constantly communicating with customers whose vehicle deliveries have been impacted by the floods, and we are truly appreciative of their patience to date.
“With regards to completely built-up models, it’s business as usual – in fact, we have been able to negotiate additional supply despite global shortages. So, we’ll have extra units to compensate for the temporary lack of availability on locally-built models.”