how the kzn floods affected toyota’s plans for 2022

Toyota South Africa has officially re-opened its Prospecton production plant in Durban after the facility was hit with severe flooding back in April.

Roughly 88% of the cars on-site at the time of flooding had to be scrapped, and the subsequent months of repairs and inactivity at the plant have resulted in thousands of additional lost models.

The current goal now is to break even for the year – a target that the manufacturer remains confident it will still be able to pull off given the popularity of the Toyota badge in South Africa.

With repairs complete and the plant back in action, Toyota is once again ready to deliver its full range of models to local motorists and to produce export units for overseas markets.

Toyota’s prospects for 2022

Toyota’s Prospecton plant re-opening was done in stages, starting with the Hino and Hi-Ace production lines which were brought back online in May.

This was followed by the Hilux and Fortuner in July, and the first weeks of August marked the re-opening of the final production queues for the Corolla Cross and Quest models, meaning Toyota’s local factory is once again fully operational.

Last week the manufacturer also celebrated the shipping of its first export units to Europe since the flooding in April.

In terms of the total cost of the disaster, the immediate damages to the plant are estimated to be in the tens of millions of rands, according to Toyota’s VP of finance and exports, Brownyn Kilpatrick.

An exact figure could not be provided as Toyota is still assessing the full extent of the damages and negotiating with its insurers months after the incident, she said.

how the kzn floods affected toyota’s plans for 2022

However, a far greater cost than the damages themselves has been the lost revenue from car sales.

It is estimated that 70,000 units were lost due to the inactivity at the plant over the past months as a consequence of the repairs.

The average vehicle making its way off the production line at Prospecton has a value of approximately R400,000, said president and co-CEO of Toyota South Africa, Andrew Kirby, in response to questions from the media.

This means the company has lost roughly R28 billion in revenue since its temporary shutdown in April.

This is also the third disaster to affect Toyota in a little over two years, as Covid-19 and last year’s provincial unrest took a huge toll on the automaker as well.

However, not a single job was lost because of the floods, and the company was achieving record sales within the first quarter of 2022, putting them in good stead ahead of any potential setbacks.

Given the extent of the damage, the brand was able to make its recovery remarkably quickly, helped out by support from parent company Toyota Motor Corporation in Japan.

The re-opening of the facility was also celebrated with the launch of the new Corolla Cross GR-Sport – an athletic derivative of one of the company’s most popular vehicles.

Keyword: How the KZN floods affected Toyota’s plans for 2022

CAR'S NEWS RELATED

Mitsubishi Triton shake up! Toyota HiLux and Ford Ranger-rivalling 2023 ute cops price rise and loses entry grade, but scores new limited-edition variant

2023 Mitsubishi Triton 4×2 pricing before on-road costs 2023 Mitsubishi Triton 4×4 pricing before on-road costs The Mitsubishi Triton Sport Edition can be had in white or black, with red trim signifying it’s one of the 400. Mitsubishi Australia has announced its lightly updated Triton range for 2023, with prices bumped ...

View more: Mitsubishi Triton shake up! Toyota HiLux and Ford Ranger-rivalling 2023 ute cops price rise and loses entry grade, but scores new limited-edition variant

Toyota Australia re-opens order book for GR Yaris, 160 units coming

With Toyota struggling to keep up with demand for its manic little GR Yaris hot hatch, the company has announced that the order books have been re-opened for 160 units coming to Australia over the next 12 months. Toyota was forced to put a pause on orders for the GR ...

View more: Toyota Australia re-opens order book for GR Yaris, 160 units coming

Toyota resumes sales of bZ4X EV SUV after “wheels falling off” issue resolved

Source: Toyota Toyota has been known to be slower to the EV party with no BEV (Battery Electric Vehicles) currently available in Australia. The bZ4X, Toyota’s first BEV model, which was launched earlier this year in the US has been allowed to be sold again. That’s after a major ...

View more: Toyota resumes sales of bZ4X EV SUV after “wheels falling off” issue resolved

Less Power Actually Helps the 2023 Toyota Highlander

How much does the 2023 Toyota Highlander cost? What’s new for the 2023 Highlander? Does the 2023 Highlander have interior upgrades? We have good news and not-so-great news about the Toyota Highlander. This SUV is back with significant upgrades for the 2023 model year. However, these changes don’t come ...

View more: Less Power Actually Helps the 2023 Toyota Highlander

Toyota President Thinks California's EV Targets Will Be Tough To Meet

He thinks EVs need more time to go mainstream.

View more: Toyota President Thinks California's EV Targets Will Be Tough To Meet

Toyota restarts output of first EV after fixing safety issues

Toyota said it would restart production of its first electric vehicle, the BZ4X, on Thursday after fixing potential safety problems that had halted sales of the new battery-powered model for more than three months. Japan’s largest automaker, a laggard in the EV market, recalled 2,700 BZ4Xs globally in June ...

View more: Toyota restarts output of first EV after fixing safety issues

Toyota bZ4X Sales Resume After Model-Wide Recall

Structural problems with the wheels have been solved, and the all-electric car will go back into production shortly.

View more: Toyota bZ4X Sales Resume After Model-Wide Recall

Here's Your Chance to Buy an Ultra-Rare Toyota Mega Cruiser in the U.S.

Less than 200 civilian-spec Mega Cruisers exist and they're exceptionally hard to find Stateside. This one has a U.S. title and it's been converted to left-hand drive.

View more: Here's Your Chance to Buy an Ultra-Rare Toyota Mega Cruiser in the U.S.

2023 Toyota Highlander Replaces V-6 with 2.4L Turbo-Four

3 Hybrid Toyota SUVs That Are Game Changers In Their Segments

Toyota bZ4X, Subaru Solterra Production Resumes After 3-Month Pause

Toyota bZ4X production to resume after fixing loose wheel recall, new airbag issue

The 2023 Toyota Highlander Adds a Turbo, Drops the V6

Toyota will resume bZ4X EV sales following safety recall concerning its wheels falling off

Toyota Resumes bZ4X Production After Fixing Wheel Hub Bolt Issue

2023 Toyota Highlander Ditches the V-6, Adds Tech, Raises Prices

Toyota to launch small electric sedan in China

Truck Review: 2022 Toyota Tacoma TRD Pro 4x4

Toyota Urban Cruiser Hyryder Vs Mahindra Scorpio-N Price, Engine Specs, Dimensions Comparison

2023 Toyota Highlander Turbo Costs $36,420, Mega Gallery Released

OTHER CAR NEWS

;
Breaking thailand news, thai news, thailand news Verified News Story Network TopCarNews France | Actualités et Salons Automobiles, Fiches Techniques, Photos et Magazine Auto TopCarNews Deutschland | News, Tests, Kaufberatung, Oldtimer, Motorrad & Wohnmobil