Toyota still at standstill
DAMAGE: NO STOCK FOR DEALERS
Production affected for at least 12 weeks.
The expansive Prospecton production plant of Toyota, south of Durban, will “be down” for a minimum of 12 weeks because of damage caused to the facility following the recent KwaZulu-Natal floods, said vehicle retailer Combined Motor Holdings (CMH).
CMH chief executive Jebb McIntosh made the comment during a presentation on CMH’s latest annual financial results, released this week.
“The Toyota factory is down for, we believe, a minimum of 12 weeks,” he said.
“The dealers will not get stock in those particular models for the next 16 weeks because if they are out for 12 weeks, it will take them four weeks to replenish the stock supply,” said McIntosh.
The “particular models” McIntosh was referring to are the Hilux, Corolla Cross, Quest, Fortuner and Hiace Ses’fikile – all of which are produced locally at the Prospecton plant.
Production at the plant has been suspended since 11 April.
A major supplier to Toyota, automotive company Metair Investments, yesterday morning issued a statement related to the impact of the KZN floods.
It confirmed that it has now initiated a business interruption claim to limit the impact to Metair’s Automotive Components Vertical’s earnings because of the floods and the impact on a major original equipment manufacturer (OEM), without naming Toyota.
“While the impact on
Metair’s facilities was minimal and operations had promptly returned to normal, a major OEM customer of the group advised that it suffered significant damage to its plant with production suspended for clean-up operations and assessments to be carried out,” it said.
“There is no certainty yet on the timing of production coming back online but Metair’s Automotive Components Vertical expects a material reduction in demand for its products until then.
“Metair has insurance in place and has initiated a business interruption claim which would limit the impact to the Automotive Components Vertical’s earnings,” the group added.
“Metair will also work with the affected OEM to support their recovery and any recoupment of lost production… Metair is in close contact with its funders to maintain sufficient short-term liquidity until the situation stabilises.”
Moneyweb previously reported that a senior executive of a local-based vehicle manufacturer claims production at the Toyota plant will only resume in about four months, following the extensive flood damage.
The executive said the floods had caused an estimated R2.8 billion in damage to Toyota’s plant.
Toyota has not responded directly to Moneyweb to confirm or deny these claims and to a number of other questions after it indicated last week it is still unable to confirm when production will resume at its plant.
The auto giant said it is currently implementing a systematic and meticulous phased plan to return its Prospecton plant to working condition after suffering extensive flood damage last month.
It noted that this approach is designed to ensure a safe startup, without any potential secondary issues.